Foreign Investors Affirm That Vietnam Is Their Only Destination

Vietnam has become a production center for large projects and billions of dollars contracts to produce high value products, along with many commitments from Vietnam Government have inspired the business community to set up company in Vietnam.

According to representative of HSBC Vietnam, in the context of the world economy with a lot of political instability, Vietnam is emerging as a bright spot in the region with the advantage of competitive labor prices, stable political and macroeconomic. Many foreign investors have confirmed that they considered Vietnam as their only investment destination in the region and that they are still expecting to expand their investment in Vietnam.

Looking at Vietnam now is a country with rapid development plus the Government’s fierce policies and the waves of FDI into Vietnam have created great opportunities for both Vietnamese and foreign businesses.

A country can only develop sustainably when domestic enterprises also develop strongly and sustainably. In order to be able to develop and survive in the future, Vietnamese enterprises truly need to reform, improve their competitiveness, invest in technology for sustainable development, improve their management skills apply science and technology, actively participate in the supply chain of FDI enterprises. These are the problems if Vietnamese enterprises want to develop sustainably.

Finally, Vietnam has huge advantages compared with other countries in the region, based on low cost labor and the strong wave of FDI into Vietnam. This is the “golden opportunity” of Vietnam to be able to carry out reforms of the country. Investors are very hopeful that the Government will continue to reform to make Vietnam become a new tiger of Asia.

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Can Vietnam Become a New Production Center of The World?

Vietnam now is a machining and production center, just behind Singapore on the total investment amount of China.

China is following the model of the Japanese economy and then has higher production costs. Therefore, Chinese enterprises are now diverting into neighboring countries to find the location for new manufacturing facilities.

With great potential for growth, young population structure and lower wage costs, Vietnam will benefit from the development of infrastructure associated with competition for positions in regional influence between China and other major economies.

This is an opportunity for Vietnam to improve its position in the value chain by becoming a global center of production of low-value commodities.

To enhance accessing to investment capitals, becoming a center of manufacturing, global outsourcing and enhancing the position in the value chain, in the long term, Vietnam will actively screening the list of projects FDI under the strategy and development-oriented by the Government.

Vietnam needs to invest in education and training to develop workforce skills. In addition, Vietnam also needs to focus more on investment in environmental infrastructure, especially in transportation and services.

Along with the continuous integration in ASEAN and by the importance of this region for the 4 largest economies in the world, Vietnam has many advantages to attract multinational companies to invest in order to take use existing opportunities of Southeast Asia area.

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