FDI in Vietnam

The South East Asian region is fast becoming a destination for investment. The inflow of foreign direct investment (FDI) of worldwide countries into ASEAN countries has increased significantly. According to the World Bank, among the South East Asian countries, Vietnam is considered as the new most promising market. From 2011, the net inflow of foreign investments into Vietnam has outstandingly increased, especially from East Asian countries, such as South Korea and Japan. Therefore, this paper will focus on how Vietnam become the more appealing market than some of the other ASEAN countries through the country’s competitive economic strengths. The paper will analyze and compare FDI positions, circumstances and competitive economic strengths of Vietnam to some of the other ASEAN countries’. In addition, the recent trade war between the US and China is also considered as a positive factor that helps increase generally FDI in ASEAN and specifically FDI in Vietnam. Hence, the paper will also analyze and compare the impact of the recent trade war on the inflow of foreign investments into Vietnam. Finally, this paper will present some challenges that Vietnam needs to consider to keep its promising position in attracting FDI