Vietnam emerges as attractive Asian destination for investors: The Economist

Vietnam has emerged as an attractive foreign direct investment (FDI) destination in Asia, by beating China and India, a report by The Economist Intelligence Unit (EIU) has indicated.

Vietnam emerges as attractive Asian destination for investors: The Economist hinh anh 1

Vietnam emerges as attractive Asian destination for investors (Photo: VNA)

The Southeast Asian nation has become a new hub for low-cost manufacturing in Asian supply chains, the website eurasiantimes.com on January 14 quoted the report.

The report suggests that factors that make Vietnam better than its peers are the incentives for international firms for setting up units to manufacture hi-tech products, the pool of low-cost workers, and the proliferation of free trade agreements.

It also cited Ruchir Sharma, an emerging markets strategist at Morgan Stanley, as saying that Vietnam’s FDI has averaged more than 6 percent of GDP, which is the highest ratio in any emerging country.

In addition, the ever-changing policies as per the market demand, the vigorous changes in the business and investment climate, socio-political stability and population structure are also factors that made the country attractive for FDI, the report said.

 

It added that the recent free trade agreement between Vietnam and the European Union has benefitted the country as the EU lifted 85 percent of its tariffs on Vietnamese goods in 2020 and the FTA’s biggest gains were witnessed by footwear manufacturers in Hanoi.

Around 40 percent of exports to the EU in footwear manufacturing faced 30 percent tariffs, which were completely withdrawn from August 2020.

Even amid the COVID-19 pandemic, in the period from January to September 2020, the country attracted 21.20 billion USD in FDI or 81.1 percent compared to the same period last year, it said, quoting data of the Vietnam Briefing./.VNA

Vietnam attracts over $28.5 billion of FDI in 2020

Vietnam attracts over $28.5 billion of FDI in 2020

Foreign investors had poured more than $28.5 billion into the Vietnamese market as of December 20, equivalent to 75 percent of the amount in the same period last year.

FDI forecast to flow into supporting industries as investors set up new supply chains

FDI forecast to flow into supporting industries as investors set up new supply chains

Foreign direct investment in supporting industries is expected to spike in the coming months as more and more foreign companies establish production facilities in Vietnam and seek to develop supply chains here, experts said.

 
 

Other News

.
Vietnam announces 84 business lines restricted for foreign investors
Vietnam announces 84 business lines restricted for foreign investors
BUSINESSicon  10/04/2021 

Vietnam has for the first time released a list of sectors which foreign investors are restricted or banned from accessing.

Farmer earns billions of VND by using smartphone, apps
Farmer earns billions of VND by using smartphone, apps
BUSINESSicon  10/04/2021 

Farming in Vietnam has become more digitized, which has eased the workload and increased sales of products to people who live in other localities.

The matrix of edible bird’s nests
The matrix of edible bird’s nests
BUSINESSicon  10/04/2021 

Being dubbed as "white gold", for a long time, edible bird's nest is a hot commodity in the market. However, currently, edible bird’s nests are sold everywhere that buyers cannot know where the origin and how the quality is.

Corporate bond rush heads for slowdown
Corporate bond rush heads for slowdown
BUSINESSicon  10/04/2021 

With Vietnamese regulators’ efforts to minimise the risks of corporate bonds’ mass issuance, the landscape is predicted to be cooled down compared to a frenzy of debt instruments in the previous period.

Local mergers and acquisitions portray businesses’ confidence
Local mergers and acquisitions portray businesses’ confidence
BUSINESSicon  10/04/2021 

The first three months of the year have witnessed more local businesses beef up their mergers and acquisitions efforts in order to scale up operations.

Foreign firms take over petroleum market, Ministry of Industry and Trade anticipates risk
Foreign firms take over petroleum market, Ministry of Industry and Trade anticipates risk
FEATUREicon  09/04/2021 

The Ministry of Industry and Trade (MoIT) has proposed removing the rule in a decree that says foreign investors are allowed to hold no more than 35% of shares in petroleum trading businesses.

Vietnam manufactures 54.4 million mobile phones in Q1
Vietnam manufactures 54.4 million mobile phones in Q1
BUSINESSicon  09/04/2021 

More than 54 million mobile phones were produced in Vietnam in the first three months of 2021. The phone and phone component industry also earned revenue of over US$14 billion in the same period.

Lack of raw materials threaten wood prices
Lack of raw materials threaten wood prices
BUSINESSicon  09/04/2021 

Input material prices for Vietnamese wood exporters have risen sharply, but most of them are stuck in the mud as there seems no suitable way to increase their selling prices accordingly.

BOT projects incur losses, investors and banks worry about bad debts
BOT projects incur losses, investors and banks worry about bad debts
FEATUREicon  09/04/2021 

Investors are worried as their Build-Operate-Transfer (BOT) projects cannot satisfy requirements as revenue has been lower than expected.

‘Land rush’ breaks out, price triples within one month
‘Land rush’ breaks out, price triples within one month
BUSINESSicon  09/04/2021 

Land prices unexpectedly escalated after Tet holiday, though Vietnam is still struggling with Covid-19 and people have had to tighten their purse strings during the pandemic.

Made-in-Vietnam textile products to be sold on Amazon
Made-in-Vietnam textile products to be sold on Amazon
BUSINESSicon  08/04/2021 

If sales through Amazon online stores worldwide are successful, Vietnamese products will have brand positioning in markets worldwide.

Vn-Index predicted to hit all-time high of 1,300 pts in April
Vn-Index predicted to hit all-time high of 1,300 pts in April
BUSINESSicon  08/04/2021 

Strong involvement of individual investors and participation of new foreign fund would help offset the net selling trend of foreign investors.

Economy growing strongly on back of COVID-19 endgame
Economy growing strongly on back of COVID-19 endgame
BUSINESSicon  08/04/2021 

Efforts to boost business and production fuelled by the gradual use of COVID-19 vaccines have helped recover the country’s economic growth, driven largely by the manufacturing and processing activities.

VIETNAM BUSINESS NEWS APRIL 9
VIETNAM BUSINESS NEWS APRIL 9
BUSINESSicon  09/04/2021 

CPTPP gives boost to Vietnamese exports

VIETNAM BUSINESS NEWS APRIL 8
VIETNAM BUSINESS NEWS APRIL 8
BUSINESSicon  08/04/2021 

Aquatic product exports hit $1.64 bln in Q1

Multinationals may hesitate to enter Vietnam because of rising land rent
Multinationals may hesitate to enter Vietnam because of rising land rent
BUSINESSicon  08/04/2021 

Rising land rent and shortages in industrial zones (IZs) may cause multinationals, which are seeking land near Hanoi and HCMC City, to hesitate to come to Vietnam.

Vietnam to attract more foreign investment in high-tech industry
Vietnam to attract more foreign investment in high-tech industry
BUSINESSicon  08/04/2021 

Vietnam will lure more foreign investment in the high-tech industry by offering more incentives and amending requirements for high-tech businesses.

Forbes names six Vietnamese billionaires in latest rich list
Forbes names six Vietnamese billionaires in latest rich list
BUSINESSicon  07/04/2021 

Globally-renowned business magazine Forbes has just released its annual list of the world’s billionaires, including six billionaires from Vietnam.

Vietnam will have national portal on product traceability this year
Vietnam will have national portal on product traceability this year
BUSINESSicon  07/04/2021 

A national portal on tracing the origin of products and goods is expected to be put into operation in the fourth quarter of this year, according to the Directorate for Standards, Metrology and Quality (DSMQ).

Airlines await “vaccine passports” for resumption of international flights
Airlines await “vaccine passports” for resumption of international flights
BUSINESSicon  07/04/2021 

Although “vaccine passports” are yet to become official, airlines are nonetheless preparing for the resumption of international flights based on their introduction.

 
 
 
Leave your comment on an article

OR QUICK LOGIN