Foreign direct investment (FDI) inflows to Vietnam continued their upward trajectory in the first half of 2025, reaching $21.51 billion, a sharp increase of 32.6 per cent on-year. Notably, FDI disbursements surged to $11.72 billion, the highest six-month figure recorded between 2021 and 2025, reflecting sustained momentum in bringing renewed capital into action.

However, Vietnam is increasingly facing a critical dilemma: while capital inflows grow, much of the transferred technology remains outdated. Despite long-standing hopes that FDI would help modernise the domestic industry, only 5 per cent of foreign-invested enterprises (FIEs) in Vietnam currently employ high-tech solutions, according to Deputy Minister of Finance Do Thanh Trung, speaking at the Vietnam Connect Forum 2025. The remaining 95 per cent rely on medium-level or outdated technologies – posing serious challenges to the country's climate ambitions and its pledge to achieve net-zero emissions by 2050.

Alongside Vinacontrol, the MoST has also designated QUATEST 3 as a qualified organisation to perform inspection under the new regulatory framework. Operating under the Commission for Standards, Metrology and Quality, QUATEST 3 is a state-affiliated sci-tech institution that provides inspection, testing, calibration, and certification services in accordance with national standards and the regulatory mandates of various ministries.

Located in Ho Chi Minh City, QUATEST 3 offers valuable support to companies operating in southern Vietnam. In addition to its domestic functions, QUATEST 3 has sought for collaboration with other institutes both regionally and globally. As a state-affiliated organisation, the centre benefits from favourable financial support and policy backing, which has enabled the development of advanced testing capabilities across diverse technical domains.

Upon obtaining an inspection certificate, investors must supplement their technology determination dossier with two additional documents: (i) a request form for technology assessment and (ii) a detailed description of the current technology intended for use in the undertaking.

Following the submission of a completed application, the presiding authority shall, within three working days, engage environmental regulatory bodies and the relevant specialised management agency for coordination. These authorities are required to provide a written response within 15 working days, which may be extended to 20 working days for projects of significant scale or involving complex technologies. Upon receipt of all necessary evaluations, the presiding authority shall, within five working days, issue an official written determination regarding the technological evolution of the venture.

Taking into account the additional time required for the designated organisation to inspect machinery and technological lines used in a project, the entire assessment process may take up to two months or longer, depending on the complexity of the technology, the enterprise's readiness in preparing documentation, and the responsiveness of the appointed inspection entity, particularly in ensuring timely coordination across various localities.

While Decision 29 introduces stricter regulatory thresholds, it opens the door for foreign investors to stand out. Those who comply early will gain smoother access to licensing and position themselves as frontrunners in Vietnam's transition towards high-tech, sustainable manufacturing. In today's green-driven market, compliance is no longer a burden – it is a competitive advantage.

Source: Vietnam Investment Review