Private Investment, Governance and Sustainable Development in Vietnam’s Ethnic Minority and Mountainous Areas
Abstract
This study examines the role of private investment in promoting sustainable socio-economic development in Vietnam’s ethnic minority and mountainous areas, where investment distribution remains structurally uneven compared to lowland and metropolitan regions in Southeast Asia. The study employs a qualitative secondary research design that combines thematic synthesis and comparative policy analysis using reports from international development organizations, national policy documents and peer-reviewed literature published between 2015 and 2024. The analysis is guided by three complementary theoretical frameworks: Institutional Void Theory, Stakeholder Theory and Social Embeddedness Theory. The analysis suggests that although Vietnam has established a relatively comprehensive policy framework to encourage private investment in disadvantaged regions, policy implementation remains uneven across localities. Key barriers include inadequate infrastructure, weak administrative consistency, limited access to land and finance, environmental sustainability risks and insufficient mechanisms for community engagement and benefit sharing. The study further shows that governance coordination, infrastructure connectivity, transparent procedures and socially embedded investment approaches are more decisive for long-term investment sustainability than fiscal incentives alone. In addition, locally embedded enterprises often demonstrate stronger social legitimacy, while external investors possess greater financial and technological capacity but face higher perceived risks in remote mountainous regions. By integrating institutional, social and governance perspectives, this paper contributes to the literature on long-term development in Southeast Asian Mountain regions and proposes a coordinated governance framework for promoting inclusive and sustainable private investment in Vietnam’s ethnic minority and mountainous areas.