VIETNAM - LESSONS FROM THE LEADING POSITION IN ATTRACTING FDI
According to Ms. Shireen Muhiudeen - writer of the South China Morning Post newspaper, Vietnam is now a typical case study for Southeast Asian countries to learn about FDI attraction strategy. Within a decade, Vietnam has become a "magnet" in attracting flows of FDI of the region with a compound annual growth rate of 10.4% in the period 2013-2019 - 6 years with a total 81% increase. For developing countries like Vietnam, FDI is an important source of finance to promote mutual cooperation from technical training, technology advancement to export potential. Referring to the economic boom model of Singapore and China thanks to the contribution of FDI, Vietnam is taking advantage of these opportunities to promote their potential by adopting investment policies to support enterprises, building industrial parks with abundant labor supply.
Under the increasing competition among ASEAN markets in attracting FDI, young labor force and stable political environment are two highlights that increase the attractiveness of Vietnam in the eyes of foreign investors. In addition, efforts in controlling inflation, keeping exchange rates stable and saying no to bureaucracy through tax commitments and e-customs also prove that Vietnam is trying to create all advantages to soon recover the economy.