VIETNAM is bound to develop its production value chain through foreign direct investment (FDI), reports Vietnam.net.
vietnam welcomed the first FDI after opening up to foreign investment in the late 1980s and the second wave of FDI after the nation become a member of the World Trade Organisation (WTO) in 2007.
Currently, the third wave of FDI began when foreign investors started searching for alternative production bases outside China.
As a result, Vietnam had a GDP growth rate of 2.91 per cent, a growth attributed to the government's efforts to contain the spread of Covid and the continuation of economic reforms aimed at improving FDI inflows.
In 2020, Vietnam's FDI attraction dropped 25 per cent year-on-year to US$28.53 billion, while global FDI fell 42 per cent last year to $859 billion.
'Vietnam needs to become a freer, more progressive, and more open economy than China if it wants to compete for FDI,' said VCI Legal founder Phung Anh Tuan.
'Although Vietnam cannot compete in terms of market size and consumer base with China, we must create a competitive advantage through investment conditions, a transparent legal system, and the predictability of policy to develop a globally connected market economy based on the rule of law,' said Mr Tuan.
SeaNews Turkey
vietnam welcomed the first FDI after opening up to foreign investment in the late 1980s and the second wave of FDI after the nation become a member of the World Trade Organisation (WTO) in 2007.
Currently, the third wave of FDI began when foreign investors started searching for alternative production bases outside China.
As a result, Vietnam had a GDP growth rate of 2.91 per cent, a growth attributed to the government's efforts to contain the spread of Covid and the continuation of economic reforms aimed at improving FDI inflows.
In 2020, Vietnam's FDI attraction dropped 25 per cent year-on-year to US$28.53 billion, while global FDI fell 42 per cent last year to $859 billion.
'Vietnam needs to become a freer, more progressive, and more open economy than China if it wants to compete for FDI,' said VCI Legal founder Phung Anh Tuan.
'Although Vietnam cannot compete in terms of market size and consumer base with China, we must create a competitive advantage through investment conditions, a transparent legal system, and the predictability of policy to develop a globally connected market economy based on the rule of law,' said Mr Tuan.
SeaNews Turkey