Vietnam is said to be an attractive investment destination thanks to low production costs and FTAs. (Photo: VNA)According to the writing,Vietnam is an attractive investment destination thanks to low production costs,which is also boosted by the Regional Comprehensive Economic Partnership (RCEP).Together with the country’s fast economic growth and standing in global trade,Vietnam’s supply chains are developing continuously and becoming a prioritychoice for manufacturing in the region.
The size of the Vietnameseeconomy ranks 40th in the world and fourth in the Association ofSoutheast Asian Nations (ASEAN). In the IT industry, the country has outpacedmany superpowers and become one of the world’s leading mobile phone producersand exporters. It ranks 9th in terms of software export andoutsourcing and 6th in terms of computer games in the world.
An increasing number ofcompanies are seeking to invest in ASEAN or other regions. Among the countries withcompetitive advantages for investment, Vietnam has emerged as an efficientchoice in Southeast Asia, the article noted.
About 31.15 billion USD offoreign direct investment (FDI) was poured into Vietnam last year, up 9.2 percentfrom 2020. Though this figure is lower than the over 38 billion USD in 2019, itcan still be considered a positive result amid the complex COVID-19 pandemic,showing foreign investors’ trust.
The writing cited experts asforecasting that driven by the RCEP, investment from the three largest foreigninvestors in Vietnam, namely the Republic of Korea, Japan, and Singapore, willincrease.
An analysis by the PetersonInstitute for International Economics indicated that Indonesia, Malaysia,Thailand, and Vietnam will benefit most from the RCEP. Meanwhile, the FocusEconomicswebsite held that Vietnam is the largest beneficiary from this agreement,possibly thanks to its export sector with competitive advantages integratingmore strongly into regional value chains.
The article said Vietnam hasmade use of free trade agreements (FTAs) as a tool to guarantee its economicpower and financial security, and that even when the pandemic broke out, thesigned FTAs will help the country promote both the quantity and quality oftrade and investment, diversify partners, and engage in global value chains./.
VNA
