Vietnam is ranked at 68th position out of 140 countries for attracting foreign direct investment (FDI), according to a recent survey conducted by the World Bank (WB) and the United Nations Conference on Trade and Development (UNCTAD).
The rating is based on 12 factors such as per capital gross domestic product (GDP), GDP growth for the past ten years, export over the GDP, the import of automobiles and electronic components, and the flow of FDI capital compared to other countries worldwide.
However, in terms of FDI capital criteria, Vietnam can post 25th among 88 countries and territories, which enjoys FDI capital of over $10 billion per year, these organizations said.
Meanwhile, Vietnam is only regarded as a business environment of medium level as it stands 99th among 155 examined countries in another survey jointly conducted by the WB, UNCTAD and the International Financial Company (IFC).
The assessment was dependent on ten criteria: starting a new business, investor protection, employee hiring and firing, contract performance, asset registration, closing of a business, borrowing credit, licenses, taxes, and cross-border trade.
With the lowest production costs in Asia and a great potential for economic development, in the past few years, Vietnam has witnessed a huge wave of FDI investment with the penetration of many big investors, especially those from Japan. Many Japanese companies now see Vietnam as the best place to move their operation to from China, which has been their first choice for many years, according to a report from the Japan External Trade Organization (JETRO).
Vnexpress, Vietnamnet
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