United States Department of State

Vietnam United States Department of State

Vietnam is serious about attracting foreign investment, especially in sectors that will bring advanced technology and improve Vietnam's labor productivity. Vietnam's attractiveness as an FDI destination has grown as the country has made key legal reforms related to the business climate. Other draws are Vietnam's stable political system, strategic location near global supply chains, and an abundant labor force that is significantly less expensive than that of China. Foreign invested companies continue to play an important role in the economy. The FDI sector contributed 62 percent of total exports in 2014, up from 47 percent in 2000, and foreign invested enterprises' contribution to GDP increased to 18 percent from 13 percent over the same period. Vietnam has maintained registered FDI levels of around USD 17 billion per year over the last five years. Conclusion of any or all of Vietnam's six active trade agreement negotiations -- the TPP, the Regional Comprehensive Economic Partnership (RCEP), the Vietnam-EU FTA, the Vietnam-Eurasian Customs Union FTA, the Vietnam-Republic of Korea FTA, and the Vietnam-European Free Trade Area FTA -- would open the door for a considerable increase in FDI. Additionally, by the end of 2015 Vietnam aims to fully integrate into the ASEAN Economic Community (AEC), which likely will increase foreign investment from their ASEAN neighbors.