International community evaluates Vietnam as a "magnet" attracting FDI capital

According to Ms. Thea Jamison, Vietnam has benefited greatly from FDI capital, as well as global restructuring, and this is not something that has just started recently, but has been going on for many years. With very strong proposals, an open and predictable legal environment, competitive labor costs, and abundant land, Vietnam is not only a "magnet" for FDI but also expanding the types of FDI.

“Traditionally, FDI has been focused on the US or South Korea. But now Vietnam is seeing investment from China, some new investment from Europe and this is happening across all sectors, not just technology, but textiles and manufacturing. Nvidia recently announced that it will set up an R&D center in Vietnam. I think one of the areas of great interest right now is industrial park development because this will directly impact the manufacturing boom that is happening in Vietnam. There is a huge demand right now, including big corporations like Samsung, LG and recently Foxconn,” said Ms. Thea Jamison.

Ms. Thea Jamison, Director of Investment Consulting Company CHANGE Global - Photo: Bloomberg Television

Regarding the tariff war between the US and China, Ms. Thea Jamison said that it is difficult to assess the impact of this war, but Vietnam has been preparing for a long time. The proof is Samsung, this company has been present in Vietnam for more than 10 years and more than half of the group's phones worldwide are produced in Vietnam.

Assessing the medium-term prospects of Vietnam's economy in the next 5 years, the US credit rating agency S&P Global Ratings has given a number of key drivers, contributing to making Vietnam one of the fastest growing emerging markets in Asia.

These include the development of a highly skilled workforce, strong foreign direct investment, the impacts of the US-China trade war, and efforts by multinational companies to diversify their manufacturing supply chains.

Regarding the medium-term economic outlook, S&P believes that many positive growth drivers are creating favorable winds and will continue to be the pillars for the rapid growth of the Vietnamese economy. This is expected to promote strong growth in total GDP as well as GDP per capita of Vietnam.