Vietnam ranks 2nd among most attractive destinations in Asia

CA - Vietnam is listed the 2nd among the most attractive investment destinations in Asia behind China, Dr. Saori, Sugeno, an economist from Japan’s Daiwa Institute of Research (DIR) said at a seminar in Tokyo Aug 3.

Vietnam’s increasing consumption demand is one of reasons why investors select it as a promising market, Sugeno said, adding that the country’s priorities in infrastructure development catch their attention.

However, he noted that the Vietnamese government needs quickly complete the legal corridor for the application of public-private partnership (PPP) model to attract more private investors.

Besides, Sugeno also urged Vietnam to improve its investment environment, develop capital market to lure foreign indirect investments and set up investment funds for infrastructure projects.

Yuichi Bamba, Deputy Director of the Asian and Ocean Division under JETRO’s Overseas Research Department, affirmed that Vietnam becomes an attractive place thanks to its low and abundant labor force.

He revealed that majority of Japanese firms in Vietnam are optimistic on their business results in the country and they are also working out plans to expand operations in next 1-2 years in the market.

Recently, the United Nations Conference on Trade and Development (UNCTAD) ranked

Vietnam in the 8th in the Asian region in foreign direct investment attraction with pledged capital of US$21.48 billion in 2009.

Vietnam licensed 533 foreign-invested projects totaling US$8.4 billion and allowed 137 existing projects to add their capital by US$715 million between January and July.

Foreign investors disbursed a total of US$6.4 billion in the Southeast Asian country during the period.

This year, the Southeast Asian country expects to attract US$25 billion and disburse US$11 billion in FDI this year up 16.38% and 10% on-year, respectively.