Foreign Investors Flocking into Vietnam

Vietnam is attracting international investors by its incentives such as tax breaks, inexpensive land, cheap labor and its large population of 84 million people.

 

Vietnam may become the Thailand’s main FDI competitor within five to 10 years, agreed the Kingdom’s public and private sectors.

 

The magnetism so strong that the emerging economic giant China is losing jobs, businesses to Vietnam though Chinese companies are relocating to deal with the changes, and the international corporations such Charoen Pokphand Group from Thailand, Intel and Boeing from the US, and Toyota from Japan are pouring their money into the

Southeast Asian country.

 

It also has taken various measures in order to open its market, strengthen its transparency, improve the investment and business environment, and create more favorable conditions for the development of private economic sectors.

 

Besides, appropriate policies on education, political stability and ongoing approval of World Trade Organization (WTO) status are contributing to cause of FDI flow into its market and helping Vietnam double its economic scale over the next 10 years.

 

Vietnam attracted US$5.8 billion in pledged foreign investment last year, up about 40 per cent from 2004 and US$2 billion less than India, a country more than 11 times its size in population.

 

The ratio of foreign direct investment (FDI) to GDP currently is 4.1 per cent, higher than almost all other countries in the region, including China.

 

"The future is in Vietnam," said Jerry Chang, the furniture maker's general manager.
VNA