Viet Nam’s strengths in foreign investment attraction: VietnamBriefing

Update: 15:58 | 23/07/2021
VietnamBriefing, a business news website on doing business in Viet Nam, recently published an article highlighting the country’s special factors in attracting foreign investors compared to other regional production sites.
Viet Nam’s strengths in foreign investment attraction: VietnamBriefing
VietnamBriefing, a business news website on doing business in Viet Nam, recently published an article highlighting the country’s special factors in attracting foreign investors compared to other regional production sites.

Viet Nam’s supply chains have significantly evolved from how they were a decade ago, the article said, noting that among the countries competing for investment, Viet Nam has emerged as a highly effective alternative for relocation in Southeast Asia.

“Viet Nam’s pursuit of foreign investment, competitive costs, free trade agreements, and liberal investment environment have made it an ideal location for investors seeking to reduce costs and diversify supply chains,” it said.

The writing also analysed Viet Nam’s competitive edge in terms of labour costs, political climate, infrastructure, working environment and flexible administrative system.

It quoted Dustin Daugherty, Head of North American Desk for Dezan Shira & Associates, as saying that Viet Nam enjoys a high degree of regional diversity, and the North, Center, and South all have particular competitive advantages for different industries and types of businesses.

The article reported that Viet Nam spends up to 5.7 percent of its GDP to improve transport infrastructure and logistics. A total investment value of 120 billion USD has been planned for PPP projects in the road and power sectors.

Daugherty noted that Viet Nam is still a rather unfamiliar market for new investors. Investors have to play the long game and look at Viet Nam as a long-term investment to be able to manage risks.

While Viet Nam stands to be affected by the COVID-19 pandemic, its overall positive growth rate provides a partial buffer, the article concluded.

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(Source: VNA)