More than 200 high-ranking representatives from top investment companies have chosen Vietnam as the first and second top priority among emerging markets. Vietnam had 80 percent of the votes for the two top positions, followed by India which got 75 percent.
According to Cushman & Wakefield CEO Trang Bui, to attract more foreign direct investment (FDI), Vietnam will develop infrastructure to improve competitiveness, including important highways and seaports.
The infrastructure system has been upgraded quickly to contribute to strong economic growth and significant development in logistics. The Ministry of Transport has drawn up a plan to build the North-South Expressway, complete the first phase of the Long Thanh International Airport, Quang Ninh – Kien Giang coastal road and subway routes in both the north and the south.
Thanks to the great efforts over many years, Vietnam is considered an attractive destination and a dynamic economy with openness which maintains a high growth.
A report showed that Vietnam made a new record in attracting FDI with $10.06 billion worth of foreign investments disbursed in the first six months of the year. This was the highest growth rate in five years.
Real estate was the second most attractive business field for foreign investors, accounting for 26 percent of total investment capital, with investors mostly from Singapore, Japan, Denmark, China and South Korea.
John Campbell from Savills Vietnam commented that the policies to support the economy and Vietnam’s successful vaccination campaign have given a firm foundation for foreign companies to have confidence in the recovery of the Vietnamese stock market.
Vietnam has recently done very well in encouraging businesses to relocate to Vietnam, especially investments in business fields with high added value. Vietnam offers tax incentives to technology firms or R&D, renewable energy and smart agriculture.
Vietnam has signed two next-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and EU-Vietnam FTA. Emerging as a large market with a young dynamic labor force and increasingly high labor force quality, Vietnam can compete with other regional countries in attracting FDI.
“The Vietnamese market has great potential. It is still not perfect and there is a long way ahead to go, but it is encouraging to see that the market has attracted more high value-added manufacturing and logistics sectors than in the past,” he said.
Duy Anh