Regulations on the Set of criteria for evaluating the effectiveness of foreign investment in Vietnam

Regulations on the Set of criteria for evaluating the effectiveness of foreign investment in Vietnam​

The set of criteria for assessing the effectiveness of foreign investment in Vietnam applies to foreign direct investment activities in accordance with the forms of investment specified in Article 21 of the Law on Investment 2020 is issued together with Decision 315/QD-TTg in 2025.

The set of criteria for assessing the effectiveness of foreign investment in Vietnam comprises 42 indicators, including 29 economic indicators, 8 social indicators, and 5 environmental indicators:

For example, for economic indicators, there are a total of 29 indicators, divided into 6 groups as follows:

(1) Criteria Group on Scale and Contribution to the Socio-Economic Development of the FDI Sector (8 indicators):

- Growth rate of the added value in GDP of the FDI sector;

- Proportion of the added value of the FDI sector in GDP;

- Growth rate of registered FDI;

- Ratio of adjusted FDI value;

- Growth rate of implemented FDI;

- Ratio of implemented FDI to registered FDI;

- Proportion of implemented FDI in total social investment;

- Proportion of foreign investor’s equity in total implemented FDI.

(2) Criteria Group on the Operating Efficiency of Foreign-Invested Economic Organizations (10 indicators):

- Profit before tax;

- Return on assets (ROA) of foreign-invested economic organizations;

- Return on equity (ROE) of foreign-invested economic organizations;

- Return on sales (ROS) of foreign-invested economic organizations;

- Export proportion of foreign-invested economic organizations;

- Import proportion of foreign-invested economic organizations;

- Export proportion of key products of foreign-invested economic organizations;

- Import proportion of key products of foreign-invested economic organizations;

- Growth rate of export value of foreign-invested economic organizations;

- Growth rate of import value of foreign-invested economic organizations.

(3) Criteria Group on State Budget Contributions from the FDI Sector (3 indicators):

- Amount contributed to the state budget by foreign-invested economic organizations;

- Growth rate of state budget contributions by foreign-invested economic organizations;

- Proportion of state budget contributions by foreign-invested economic organizations in total state revenue.

(4) Criteria Group on the Spillover Effects of FDI (2 indicators):

- Ratio of input materials used, produced domestically by foreign-invested economic organizations;

- Ratio of foreign-invested economic organizations linked with domestic producers and suppliers.

(5) Criteria Group on Technology in the FDI Sector (2 indicators):

- Ratio of foreign-invested economic organizations granted technology transfer registration certificates in accordance with technology transfer laws;

- Ratio of foreign-invested organizations applying high technology.

(6) Criteria Group on FDI Contribution to Enhancing Vietnam's Innovation Capacity (4 indicators):

- Number of foreign-invested economic organizations with innovation centers, research, and development centers;

- Ratio of foreign-invested economic organizations with innovation centers, research, and development centers in Vietnam;

- Growth rate of foreign-invested economic organizations with innovation centers, research, and development centers;

- Growth rate of capital allocated for innovation and research development by foreign-invested economic organizations in Vietnam.

More details can be found in Decision 315/QD-TTg effective from February 18, 2025.

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