The Eurasian Times has recently published an article on Vietnam’s success in attracting foreign direct investment (FDI), saying the Southeast Asian nation has emerged an FDI hub in Asia.

A motorbike assembly line at Honda Vietnam in the northern province of Vinh Phuc.
(Photo: VNA)

The article says in the race to become an Asian Tiger, Vietnam FDI has averaged more than 6% of GDP, which is the highest rate 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% in exports, with a 26% jump in computers/components exports and a 63% jump in machinery/accessories exports.

The Eurasian Times attributes the success to Vietnam’s business-friendly investment policies, the blossoming of industrial zones, and ample supply of young workers that make Vietnam an attractive destination for investors.

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

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% 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.