According to the media outlet, Vietnam’s FDI growth remains robust. In 2023, the country attracted US$36.61 billion in registered FDI, a 32.1% increase from the previous year, with disbursed capital reaching US$23.18 billion, up 3.5%. By September 2024, quarterly inflows had already hit US$5.2 billion, signaling sustained investor confidence. Vietnam’s FDI stock, nearing US$297 billion by late 2023, underscores its growing role as a manufacturing powerhouse.

The article attributes Vietnam’s success to several key factors. Its economy expands 5-6% annually, fueled by strong consumption, exports, and investment. Political stability provides a predictable environment, a comparative rarity among emerging markets.

The article also highlights Vietnam’s demographic advantage. With a labor force exceeding 56 million and an average age of 34.1, the country offers a young, skilled, and cost-competitive workforce. Minimum wages, around 8,800 baht/month (US$250), remain considerably lower than Thailand’s.

Policy reforms have further enhanced Vietnam’s appeal. The government has implemented investor-friendly measures, including the 2020 Law on Investment and Enterprise and the Public-Private Partnership Law. Trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership  (RCEP) provide enhanced access to global markets. The EVFTA alone is expected to increase exports to Europe by 42.7% by 2025.

Sectoral strength is another draw. The processing and manufacturing sector accounts for 63.6% of FDI in early 2024, while high-tech industries, particularly AI and semiconductors, are attracting substantial investment from Japan, the Republic of Korea, and Singapore. Real estate and renewable energy are also emerging sectors. Vietnam’s proximity to China and alignment with global trade trends make it a stronger magnet for “China Plus One” investments.

The article concludes that Vietnam’s FDI growth is outpacing Thailand’s, driven by its economic dynamism, cost advantages, and strategic policies. Its ability to attract high-tech investments and integrate into global supply chains has made it ASEAN’s FDI frontrunner.

In contrast, the article notes that Thailand faces challenges in maintaining investor confidence due to slower economic growth and ongoing political uncertainties, positioning Vietnam as a more favourable destination for long-term investment.

The report concludes that Vietnam’s combination of economic dynamism, cost advantages, strategic policies, and high-tech focus has cemented its position as ASEAN’s leading FDI destination.

Supporting industry set to expand in Vietnam with FDI boost

VOV.VN - Vietnam still has significant potential for the development of supporting industries, which also highlights the urgent need to enhance production capacity and foster stronger linkages between domestic enterprises and foreign direct investment (FDI) businesses, heard a workshop in Hanoi on August 5.