Vietnam: An Attractive Investment Destination
In a recent publication by EIU, the Business Environment Rankings report, Vietnam’s business landscape witnessed the most significant improvement between 2003 and 2023. This comprehensive assessment, based on 91 diverse indicators, evaluates the appeal of 82 countries and territories, accounting for over 90% of the global GDP, to investors worldwide.
Vietnam’s remarkable progress, earning a score of 1.3 out of 10, the highest among the studied economies, is attributed to its embrace of free trade policies, reduction in operational costs for foreign enterprises, and substantial investments in human capital and infrastructure.
Additionally, Vietnam has strategically benefited from the “China plus one” policy, aimed at diversifying global supply chains. The country’s enhanced international relations have also strengthened economic ties with major export markets, including the US and the EU.
Vietnam’s Promising Future
Looking ahead, Vietnam is projected to surpass regional peers such as Indonesia and Thailand in the business environment over the next five years. This positive outlook is underpinned by its participation in numerous free trade agreements (FTAs), competitive labor costs, and vast market opportunities.
However, the report cautions that Vietnam still faces challenges, including complex administrative processes and procedural burdens. Additionally, Vietnam is among the regions most vulnerable to climate change, with its lengthy coastline and low-lying population centers rendering it susceptible to the increasing risks of extreme heat events and disruptive storms.
