Vietnam is emerging as a leading destination for foreign direct investment (FDI) in Southeast Asia, thanks to its dynamic young workforce, advantageous trade agreements, and stable political environment, according to an analysis published by thailandbusinessnews.com on August 18.
The article by Nguyen Trang and Boris Sullivan notes that Vietnam’s FDI story is one of relentless momentum. The country attracted 36.61 billion USD in registered FDI in 2023, up 32.1 percent from the previous year, underscoring its growing role as a manufacturing powerhouse.
Citing some reasons why Vietnam shines, the writing points out the economic vigor. The country’s economy is projected to grow 5–6 percent annually, supported by strong consumption, exports, and investment. Its political stability provides a predictable environment, a rarity in emerging markets.
In terms of demographic dividend, with a labour force of about 56 million and an average age of 34.1, Vietnam offers a young, skilled, and cost-competitive workforce, turning it into a preferred choice for labour-intensive industries like electronics and textiles
Regarding policy powerhouse, the writing says Vietnam’s government has rolled out investor-friendly reforms, including the 2020 Laws on Investment and Enterprises and the Public-Private Partnership Law. The EU-Vietnam Free Trade Agreement (EVFTA) is set to boost exports to Europe by 42.7 percent by 2025, making Vietnam a gateway to global markets. The Government’s pro-business policies and increasing integration into global trade agreements, such as the CPTPP and RCEP, position Vietnam as a rising star in the region and making it a more attractive destination for long-term investment.
Vietnam also holds sectoral strength. High-tech industries, particularly AI and semiconductors, are drawing heavy investment from Japan, the Republic of Korea, and Singapore. Vietnam’s focus on high-tech industries has positioned it as a key player in global supply chains, particularly in electronics and telecommunications. Besides, real estate and renewable energy are also gaining traction.
The country’s strategic geographical location, coupled with its improving infrastructure and pro-business policies, further enhances its appeal to foreign investors.
Its FDI growth is outpacing others', driven by its economic dynamism, cost advantages, and strategic policies. The ability to attract high-tech investments and integrate into global supply chains has made it ASEAN’s FDI frontrunner, according to the article.
