Specifically, the Government agreed on the necessity of developing the Law on Key Industries in order to institutionalize the Party’s guidelines and viewpoints on national industrialization and modernization, and to improve the legal framework to promote the development of key industrial sectors in line with the context of science, technology and innovation. The Law is aimed at building an independent, self-reliant and resilient industrial base, contributing to rapid and sustainable economic growth, and advancing the country toward becoming a developed, high-income nation under a socialist orientation, while meeting practical requirements and socio-economic development needs in the coming period.

The Government has, in principle, agreed on two policy groups proposed by the Ministry of Industry and Trade, including: Policy 1: Encouraging domestic production and manufacturing of key industrial products. Policy 2: Developing supporting industries.

Formulating policies to address fundamental bottlenecks in key industries

The Ministry of Industry and Trade will take the lead, in coordination with relevant ministries and agencies, in studying and incorporating feedback from Government members to finalize the policies of the Law on Key Industries in accordance with regulations, ensuring the following requirements:

Institutionalizing the Party’s guidelines and directives on the development of key industrial sectors; formulating policies and legal mechanisms to address fundamental bottlenecks in the development of these sectors, shifting from extensive to intensive growth, from processing and assembly toward research, design and manufacturing in Vietnam, with higher technological and knowledge content, while creating breakthroughs in industrial modernization.

Encouraging appropriate localization to meet requirements and incentives related to rules of origin in international trade, in line with bilateral and multilateral trade agreements as well as the standards of major markets. Mechanisms will be designed to enable Vietnamese enterprises to participate more deeply in global supply chains and to take advantage of incentives from next-generation free trade agreements through compliance with rules of origin.

Develop regulations to attract and manage FDI in key industrial sectors

Developing regulations to attract and manage foreign direct investment (FDI) in key industrial sectors in a selective manner, prioritizing high-tech and foundational industry projects, while linking such investment with technology transfer requirements and connections with domestic enterprises, thereby enhancing national production capacity.

Reviewing the implementation of existing legal provisions to develop policies that are practical and feasible, addressing shortcomings, limitations and bottlenecks; ensuring consistency with relevant international treaties to which the Socialist Republic of Vietnam is a member; reviewing the policy dossier to ensure coherence and alignment with related laws; promoting decentralization and delegation of authority in state management of key industrial development; simplifying and reducing administrative procedures; and promoting the application of science and technology as well as digital transformation.

Based on the finalized policy dossier, ensuring constitutionality, legality and consistency within the legal system, the Ministry of Industry and Trade will take the lead, in coordination with relevant ministries and agencies, in drafting the Law on Key Industries and submitting it to the Government in accordance with regulations. The drafting process must take into full account, and provide adequate explanations for, the opinions of the National Assembly Standing Committee and its committees as stated in Notice No. 274/TB-VPQH dated February 12, 2026 of the National Assembly Office, ensuring that specific policies fall within the competence of the National Assembly, do not overlap with existing legal provisions, and are consistent with international commitments on attracting FDI into Vietnam, thereby creating conditions for the robust development of key industrial sectors in line with the Party’s guidelines and policies.