Management of foreign investment inflows towards the sustainable economic development in Vietnam

Vietnam is an FDI success story. Since the early economic reforms initiated 30 years ago under renovation policy or “Doi Moi”, FDI has become a major driver of Vietnam’s economic development. Competitive wages, stable political and economic environments, sound infrastructure, a favorable geographic location as well as a robust investment and trade policy framework have led to dramatic increases in FDI inflows. By any measure, the country’s FDI attraction achievements have been exceptional. In 2017, FDI into Vietnam exceeded inflows into other ASEAN countries, except Singapore. As a percentage of GDP, Vietnam’s FDI inflows already exceed those of China and India (and all large ASEAN countries, except Malaysia). The year 2018 also witnessed Vietnam post a record in FDI disbursement (US$17.5 billion), against a backdrop of global declines in FDI flows during 2018 of 23 percent (Source: UNCTAD 2018).