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Competitive factors make Viet Nam a destination for foreign investors
Competitive factors make Viet Nam a destination for foreign investors
Viet Nam has been emerging as a new destination for foreign investors thanks to its political stability, promising economic growth and participation in a series of new-generation free trade agreements, most recently the EU-Viet Nam Free Trade Agreement (EVFTA).
According to experts, Viet Nam is a new market to businesses from Japan, Germany and the United States. Compared to other countries in ASEAN, Viet Nam is considered a relatively potential business environment, evidenced through its political stability and promising economic growth.
Specifically, in the face of the COVID-19 pandemic, Viet Nam’s gross domestic product (GDP) still grew by 1.81% in the first half of 2020.
The main drivers of such growth were the manufacturing industry (growing by 4.96%) and the market service sectors (wholesale and retail up 4.3%, finance-banking-insurance activities up 6.78%). As a result, investors are considering Viet Nam a more transparent destination to do business.
For example, a recent survey conducted by the German Chamber of Industry and Commerce in Viet Nam found that up to 72% of German enterprises in Viet Nam would still continue their investment plans in the country, and 27% of them said they would hire more workers.
Most recently, the Bavarian Chamber of Commerce and Industry (Germany) issued a release on its website lauding Viet Nam as an extremely favorable investment and development environment for its businesses in the near future.
Accordingly, the EVFTA will wing the economic relationship between Viet Nam and the Bavarian State. The Southeast Asian country will become an ideal investment destination of choice and can replace China as Bavarian companies wish to further expand their operations in the fertile Asian market.
For Japan, the East Asian country is currently the second largest investor in Viet Nam with a registered capital of more than US$60 billion (out of the total US$380 billion FDI inflows).
Terence Alford, Director of Capital Markets & Investment Services at Colliers International in Viet Nam, highlighted that amid the constant evolution of the COVID-19 pandemic and the U.S.- China trade tensions, Japan’s financial institutions and businesses see Viet Nam as a new attractive and more stable destination to establish new companies as well as relocating their existing businesses from China.
However, in order to take advantage of the plus points as assessed by foreign enterprises above, Viet Nam still has a lot to do such as improving infrastructure and logistics, solving issues related to intellectual property rights, enhancing administrative reforms, and reducing sublicenses./.
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All comments [ 20 ]
Vietnam already has many comparative advantages and a strong investment climate, but we are working hard to become even more appealing to foreign investors.
Vietnam has been securing socio-political stability, and is known to be one of the most dynamic economies.
Vietnam is now in a period of golden population structure – 60% of its population are working age. It also has a favourable geographical location right at the heart of East Asia – home to a number of large and vibrant economies.
the country is a market economy, a member of the WTO, and a party to multiple frameworks for international economic integration, including free trade agreements with partners both within and outside the region.
The Vietnamese government is committed to creating a fair and attractive business environment for foreign investors, and constantly improving its legal framework and institutions related to business and investment.
The government has been working hard on restructuring the economy and its model for growth, as well as enhancing national competitiveness.
To add new chapters to this success story, the Vietnamese government is continuing to revitalize its business and investment climate.
Vietnam views the success of FDI enterprises as its own success. As such, the government is committed to ensuring a stable socio-political environment, protecting the legitimate rights and interests of investors, and creating an enabling environment for FDI enterprises in the country.
It will also target projects with competitive products that could be part of the global production network and value chain.
International forecasts suggest that as the world economy recovers, FDI flows are returning to dynamic economies. Given the positive prospects for both global and regional economies, we are confident Vietnam will continue to find success in this area.
The COVID-19 pandemic has seriously impacted the world economy, including Việt Nam.However, with efforts made by Vietnamese enterprises coupled with the timely support from the Government, ministries and local authorities nationwide, Vietnamese enterprises, including FDI enterprises, have overcome challenges to keep their production on course.
I also believe that when Việt Nam decides to resume international flights more foreign investors will return to the country.
It is high time for Việt Nam to talk about the investment restructuring of enterprises.
In the ASEAN bloc, Việt Nam has been an attractive investment place for many investors.
Việt Nam is a country with a stable political system with fast and sustainable economic development for many years and with abundant human resources with a big market and many more advantages compared to other countries.
Việt Nam has a good investment environment and at the recent sitting of the National Assembly, quite a few laws were discussed and adopted. When these laws come into force, Việt Nam will become a more attractive destination for many foreign investors.
t's time for Vietnamese enterprises to restructure to attract more foreign investors to Việt Nam, particularly by training workers with high skills and the country’s investment policies.
the potential for future economic development is big.
We are confident the special priorities from both the EVFTA and EVIPA and Việt Nam’s commitment to reform its investment environment will open up a new page for European investors to come to Việt Nam.
Vietnam has emerged as a favored destination among foreign firms looking to invest in many sectors. Since Vietnam offers a lot of potential for foreign investors, especially for those who are looking to venture into Southeast Asia.
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