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Vietnam FDI has averaged more than 6 percent of GDP, which is the highest ratio in any emerging country. Photo: VNA

The Eurasian Times has recently run an article, saying Vietnam has emerged as a hub of foreign direct investment (FDI).

It said in the race to become an Asian Tiger, Vietnam FDI has averaged more than 6 percent of GDP, which is the highest ratio in any emerging country, as per American multinational investment bank and financial services company Morgan Stanley’s emerging markets strategist Ruchir Sharma, quoted in a report by Livemint.

The country’s recent economic data shows a rise of 18 percent in exports, with a 26 percent jump in computers/components exports and a 63 percent jump in machinery/accessories exports.

Business-friendly investment policies, industrial zones, ample supply of young workers (60 percent of the population) made Vietnam an attractive destination for investors when flows into China began to fall, the article explained.

Ever since, the country has witnessed an annual growth rate of 10.4 percent and last year’s record high of US$16.12 billion – an 81 percent increase overall.

Vietnam’s recent economic data shows a rise of 18 percent in exports. Photo: VNA

Former Prime Minister of Vietnam Nguyen Tan Dung, writing for World Economic Forum offers the pearl of wisdom on FDI which the other nine countries in Association of Southeast Asian Nations — Indonesia, Thailand, Singapore, Malaysia, Philippines, Brunei, Cambodia, Myanmar (Burma), Laos — must take note of, the article said.

Dung writes that Vietnam’s socio-political stability, population structure, along with vigorously renovating the business and investment climate has made the country an attractive FDI site.

According to the publication, even in the time of COVID-19 crisis, Vietnam’s economy is in a good position because the government has introduced tax breaks, the delaying of tax payments, and land-use fees for businesses, revising the investment law and landing a trade deal with the European Union (EU).

Beginning July 2020, the EU has lifted 85 percent of its tariffs on Vietnamese goods, gradually cutting the rest over the next seven years, while FDI worth over US$12 billion was registered between January and April 2020, it said./.

WB: Vietnam's GDP forecasted to grow at 2.5-3% in 2020 World Bank (WB) has released report on Vietnam's macroeconomic situation in October 2020 which says that Vietnam's GDP could grow at 2.5-3.0% in 2020.

Vietnam attracts over US$21 billion in FDI in first nine months As of September 20, the total foreign direct investment (FDI) into Vietnam reached US$21.2 billion, equivalent to 81.1% year-on-year.

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