Vietnam is one of the most attractive investment destinations for Filipino businesses, according to the Malaya Business Insights, an online economic policy analysis site.

Since the mid-70s after being ravaged by war, Vietnam has come a long way, holding a number of comparative advantages and boasting an attractive investment climate. In September 2014, operational FDI stood at 8.9 billion USD, with 12.9 billion USD slated for the entire year of 2014, an increase of 8.7% compared to 2013. Investors came from over a hundred countries and territories, including some of the world’s leading transnational corporations. The figures show that Vietnam is now a destination of choice for foreign investors, even in the face of the present global economic slump.

During the first ten months of 2014, the securities market registered an impressive recovery of 20% compared to 2013; Viet Nam’s GDP growth rate increased by 5.62% during the first 9 months of 2014, while inflation crept up by 4.61% compared to 2013, the lowest rate in 12 years. These achievements have aroused the interest of foreign investors, leading government authorities to encourage FDI. 

The publication lists a number of factors that have determined Vietnam’s economic success so far: political stability, an abundant workforce, a comprehensive international integration framework, and wide-reaching reform policies.
Vietnam’s political situation has been stable for a number of years now, which has earned the country the title of being one of the most dynamic economies. Economic growth from 1991 to 2010 averaged 7.5% annually, despite the global financial crisis of 2011-2013.
The country boasts an abundance of Human Resources, with over 60% of its population being of working age. Additionally, Vietnam’s geographical location at the heart of East Asia, home to a number of large and vibrant economies, is a huge advantage.
The country joined the World Trade Organization in 2007 and is an active party to multiple frameworks of international economic integration, including a number of free trade agreements with partners both within and outside the region. Vietnam is also part of the Trans-Pacific Partnership negotiations. These factors are sure to attract more investors to Vietnam, according to the publication..

In an attempt to secure more foreign investment, Vietnam is undertaking efforts to improve its investment climate. Before the open policy of 1986, Vietnam was a centralised economy. Since opening the market to foreign investors, Vietnam has become a socialist-oriented market economy.
The Government has made a number of positive changes in order to keep up with the changing global business environment. In Vietnam, foreign and domestic investors are treated fairly under the Law on Investment, which is one of the reasons why the United Nations Conference on Trade and Development (UNCTAD, 2011) ranked Vietnam amongst the fifteen most attractive economies for foreign investors.

According to the article, Vietnam will continue to be an attractive investment site, not just for Filipino businesses, but the rest of ASEAN. The country is particularly keen to boost investments in ICT, mining, tourism, manufacturing, education and infrastructure, including energy.-VNA