Bangladesh Newspaper: Factors that make Vietnam attract FDI

The article commented that Vietnam is making efforts to improve its business environment, as evidenced by Vietnam's rise in the ease of doing business ranking thanks to an effective and transparent legal framework.

The article was posted on the website https://www.cbgabd.org on April 4. (Photo: VNA)

According to the cbgabd.org website of the KRF Center (specializing in global issues, headquartered in Bangladesh), strong foreign direct investment (FDI) flows play an important role in promoting Vietnam's economic growth. During the 2002-2023 period, Vietnam recorded high economic growth, thereby proving the effectiveness of strategic investment policies. The article posted on cbgabd.org clearly stated that Vietnam recorded a sharp increase in registered FDI from 2 million USD in 1988 to 550 billion USD by the end of 2023. The current FDI level in Vietnam is worth billions of USD, helping to promote economic growth. The national strategy is to focus on high-tech sectors, including agriculture, manufacturing, services and tourism... to further enhance Vietnam's attractiveness to international investors. In addition, Vietnam has 36,000 active FDI projects with a total capital of 441 billion USD. Notably, 57% of this FDI capital has been disbursed, reflecting the strong FDI inflows into Vietnam. Over the past 30 years, South Korea, Singapore and Japan have been the leading countries in FDI in Vietnam. The upcoming fourth wave of FDI from the US is expected to flow into Vietnam after the two countries upgraded their relationship to a comprehensive strategic partnership in September 2023. According to the article, Vietnam has a strategic geographical location as a manufacturing hub as well as its importance to the East Asian economy. Vietnam offers a favorable investment environment thanks to the stability of the government, a clearly defined economic vision, fair policy implementation, few investment barriers and attractive incentive mechanisms. The article states that Vietnam is making efforts to improve its business environment, as evidenced by its rise in the ease of doing business ranking thanks to its effective and transparent legal framework. With a population of over 95 million, a growing middle class and a service sector that contributes more than 40% of the country’s gross domestic product, Vietnam is a promising market for businesses. Domestic consumer spending is increasing, demonstrating strong economic growth and great potential for effective investment at both the regional and global levels. In addition, Vietnam is actively participating in global trade agreements, helping to strengthen its position as a favorite destination for international trade. Vietnam has signed Double Taxation Avoidance Agreements (DTAA) with more than 80 countries and territories.

A production workshop at a FDI company in Dong Nai. (Photo: Hong Dat/VNA)

This is an important factor attracting foreign investors. Vietnam is also considered an excellent choice for manufacturers who want to expand their operations and minimize risks by diversifying production. According to the article, Vietnam focuses on developing infrastructure as outlined in the master plan for transport infrastructure, thereby demonstrating a proactive approach to promoting economic growth. Vietnam has a large and highly competitive labor market, with about 60 million workers. The Vietnamese government also strives to attract foreign investors through a series of incentive mechanisms, especially tax incentives. The article states that Vietnam's FDI attraction reflects an adaptive and vibrant economic context. With a stable government and clear economic vision, a favorable investment environment thanks to fair policies, few investment barriers and incentive mechanisms, Vietnam's FDI promises to increase.

VNA/Nhandan.vn

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