Vietnam emerges as attractive Asian destination for investors (Photo: VNA) Hanoi (VNA) – Vietnam has emerged as an attractive foreign directinvestment (FDI) destination in Asia, by beating China and India, a report by TheEconomist Intelligence Unit (EIU) has indicated.
The Southeast Asian nation has become a new hub for low-costmanufacturing in Asian supply chains, the website eurasiantimes.com on January14 quoted the report.
The report suggests that factors that make Vietnam betterthan its peers are the incentives for international firms for setting up unitsto manufacture hi-tech products, the pool of low-cost workers, and theproliferation of free trade agreements.
It also cited Ruchir Sharma, an emerging markets strategistat Morgan Stanley, as saying that Vietnam’s FDI has averaged more than 6 percentof GDP, which is the highest ratio in any emerging country.
In addition, the ever-changing policies as per the marketdemand, the vigorous changes in the business and investment climate, socio-politicalstability and population structure are also factors that made the countryattractive for FDI, the report said.
It added that the recent free trade agreement betweenVietnam and the European Union has benefitted the country as the EU lifted 85percent of its tariffs on Vietnamese goods in 2020 and the FTA’s biggest gainswere witnessed by footwear manufacturers in Hanoi.
Around 40 percent of exports to the EU in footwearmanufacturing faced 30 percent tariffs, which were completely withdrawn fromAugust 2020.
Even amid the COVID-19 pandemic, in the period from January to September 2020, the country attracted 21.20 billion USD in FDI or 81.1 percent compared tothe same period last year, it said, quoting data of the Vietnam Briefing./.
VNA
