Leap of Faith: A Fairy Tale Guide to Vietnamese Industrialization

• In Event: Governance, Markets, and Innovation

Abstract

Classified as a "high-risk, high-return" market, Vietnam has been attracting foreign direct investment (FDI) since 1987 to fuel rapid and sustainable industrialization. To secure these investments, the Vietnamese government promises land and resources within tight timelines, competing fiercely with other developing nations. While large-scale foreign investment projects can significantly boost Vietnam’s economy and create opportunities, they also risk deepening inequalities and contributing to land dispossession and internal displacement. Drawing on 35 interviews with local political officials, ethnographic fieldwork with political officials and chambers of commerce, and government documents collected between 2022 and 2025, this paper explores the behind-the-scenes engineering of investment promises in Vietnam. The findings show how Vietnam’s pursuit of foreign direct investment reshapes governance as local officials navigate between state mandates and global expectations. In the race to attract and please investors, the promise of development gives way to new inequalities, where legality blurs, trust falters, and the cost of progress is borne by those left behind.

Author

• My Nguyen, University of Chicago