Vietnam’s strategic geographical location, coupled with its improving infrastructure and pro-business policies, further enhances its appeal to foreign investors, according to an article posted on thailandbusinessnews.com.
Workers at the factory of a foreign invested company. (Photo: VNA)
Bangkok (VNA) ﷽– Vietnam is emerging as a leading destination for foreign direct investment (FDI) in Southeast Asia, thanks to its dynamic young workforce, advantageous trade agreements, and stable political environment, according to an analysis published by thailandbusinessnews.com on August 18.
The article by Nguyen Trang and Boris Sullivan notes that Vietnam’s FDI story is one of relentless momentum. The country attracted 36.61 billion USD in registered FDI in 2023, up 32.1% from the previous year, underscoring its growing role as a manufacturing powerhouse.
Citing some reasons why Vietnam shines, the writing points out the economic vigor. The country’s economy is projected to grow 5–6% annually, supported by strong consumption, exports, and investment. Its political stability provides a predictable environment, a rarity in emerging markets.
In terms of demographic dividend, with a labour force of about 56 million and an average age of 34.1, Vietnam offers a young, skilled, and cost-competitive workforce, turning it into a preferred choice for labour-intensive industries like electronics and textiles
Regarding policy powerhouse, the writing says Vietnam’s government has rolled out investor-friendly reforms, including the 2020 Laws on Investment and Enterprises and the Public-Private Partnership Law. The EU-Vietnam Free Trade Agreement (EVFTA) is set to boost exports to Europe by 42.7% by 2025, making Vietnam a gateway to global markets. The government’s pro-business policies and increasing integration into global trade agreements, such as the CPTPP and RCEP, position Vietnam as a rising star in the region and making it a more attractive destination for long-term investment.
Vietnam also holds sectoral strength. High-tech industries, particularly AI and semiconductors, are drawing heavy investment from Japan, the Republic of Korea, and Singapore. Vietnam’s focus on high-tech industries has positioned it as a key player in global supply chains, particularly in electronics and telecommunications. Besides, real estate and renewable energy are also gaining traction.
The country’s strategic geographical location, coupled with its improving infrastructure and pro-business policies, further enhances its appeal to foreign investors.
Its FDI growth is outpacing others', driven by its economic dynamism, cost advantages, and strategic policies. The ability to attract high-tech investments and integrate into global supply chains has made it ASEAN’s FDI frontrunner, according to the article./.
Large-scale projects invested by Korean investors in strategic sectors such as semiconductors and energy are poised to give a strong boost to foreign direct investment (FDI) inflows into Vietnam, creating momentum to attract more high-value projects from global investors.
Foreign direct investment (FDI) inflows into Ho Chi Minh City rebounded strongly in the first seven months of 2025, reaching nearly 6.2 billion USD, up 45.67% year-on-year after a slowdown last year.
Vietnam pulled in 24.09 billion USD in foreign direct investment (FDI) in the first seven months of 2025, a 27.3% surge year-on-year, driven by strong investor confidence, according to the Ministry of Finance’s National Statistics Office (NSO).
The French side pledged to share technical guidelines and safety standards, with the Institute for Radiological Protection and Nuclear Safety (IRSN) ready to provide training for Vietnamese specialists.
Vietnam now has more than 940,000 private enterprises and over 5 million household businesses, contributing approximately 50% of GDP, over 30% of state budget revenue, and employing 82% of the national workforce.
Businesses underlined the need for expanding green credit and non-collateral concessional loans for circular agriculture projects, facilitating their participation in national key projects, and fostering alliances among Vietnamese enterprises as well as cooperation with regional partners.
State-owned Vietcombank currently leads the banking system with total assets exceeding 85 billion USD and a market capitalisation of over 20 billion USD, while maintaining strong financial safety indicators. Its non-performing loan ratio remains the lowest in the sector at 0.97%.
Malaysia is Vietnam’s third-largest trading partner in ASEAN and ninth globally, as well as a key investor with 731 valid projects worth about 13 billion USD. Bilateral trade reached 9.23 billion USD by July 2025, up 8% year-on-year, nearing the 18 billion USD target.
Finance Minister Nguyen Van Thang noted that free trade agreements such as the UK–Vietnam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have expanded opportunities for businesses in both countries.
Lotte Shopping currently operates three department stores and 16 supermarkets in Vietnam, alongside one department store and 48 supermarkets in Indonesia. The company highlighted the success of its flagship Lotte Mall West Lake Hanoi, which opened in 2023, describing it as a model for future premium complexes. Kim said the group intends to replicate this concept in other major Vietnamese cities.
In the EU, illegal, unreported and unregulated (IUU) fishing remains a major obstacle to Vietnam's efforts to have the European Commission (EC)'s “yellow card" lifted. The bloc’s dense and constantly changing regulatory framework also affects farming zones, production processes and quality standards.
The Vietnam Private Sector Forum 2025 (VPSF 2025) opened in Hanoi on September 15, packing in over 1,500 entrepreneurs, economists, and international organisations across four thematic sessions to reshape Vietnam’s private sector landscape.
The economic picture in the first eight months of 2025, whether viewed from the overall economy or from a local perspective, is very positive. Major economic centres have recorded extremely impressive growth in the period, the Ministry of Finance stated in its recent report on the socio-economic situation, sent to the Government.
Cross-border e-commerce is set to become one of the strategic pillars in Vietnam’s national master plan for e-commerce development during 2026–2030, as the country looks to build a sustainable digital export ecosystem and enhance global competitiveness for its businesses.
The State Bank of Vietnam set the daily reference exchange rate at 25,208VND/USD on September 16, down 8 VND from the previous day.
The shift of global supply chains, coupled with the impacts of the Fourth Industrial Revolution, is opening up both opportunities and challenges for the Vietnamese economy.
According to preliminary statistics from Vietnam's Customs Department, as of August 15 this year the country's shrimp exports to China (including Hong Kong) surged by up to 76% over the same period last year, reaching nearly 767 million USD and accounting for nearly 29% of the country's total shrimp export turnover.
Exquisite craftwork, diverse dishes, and vibrant music have captured the attention of international visitors at the National Entrepreneurs Day (HUN) 2025 held in Kuala Lumpur from September 12-16.
The 13th Mekong–Republic of Korea (RoK) Business Forum provided a platform to seek solutions for strengthening collaboration, overcoming economic challenges, and expanding opportunities for sustainable development in a volatile global environment.
The ratification of the agreement not only reaffirms its steadfast commitment to a rules-based, fair, and sustainable international trading order but also brings tangible domestic benefits.
Launched in 2017 as a successor to the Top 1000 Corporate Taxpayers, PROFIT500 has become a trusted 'barometer' of corporate health, reflecting not only profit scale but also financial efficiency, growth potential and social responsibility.
Ho Chi Minh City, as the country’s largest economic and financial hub, is expected to take the lead in key areas such as capital markets, banking, and commodity trading. Meanwhile, Da Nang, with its strategic location and open-minded spirit, holds great potential to become a pioneer in sustainable finance, green finance, and digital financial services.
