Foreign investment in Vietnam in 2012 continued to show positive growth, despite the global economic slowdown and the ongoing Eurozone crisis. In 2012, Vietnam attracted $12.7 billion in foreign direct investment (FDI), an increase of 6.9% compared to the previous year. The country’s ability to attract foreign investment can be attributed to several key factors, including its favorable investment environment, low labor costs, and favorable government policies.
One of the key factors contributing to Vietnam’s attractive investment environment in 2012 was the country’s membership in the World Trade Organization (WTO). This membership helped to increase trade and investment flows, as well as improve the overall business climate. In addition, Vietnam’s strategic location and its large, youthful, and increasingly educated population made it an attractive destination for foreign investors.
The manufacturing sector continued to be the largest recipient of FDI in 2012, attracting 63.6% of the total investment in the country. The real estate and construction sector was the second largest recipient, attracting 15.9% of FDI, while the services sector was third, attracting 14.3% of FDI.
To further encourage foreign investment, the Vietnamese government implemented a number of policies aimed at improving the investment environment. For example, the government streamlined investment procedures, and offered various tax and duty exemptions to foreign investors. These policies helped to increase the country’s competitiveness and made it easier for foreign investors to do business in Vietnam.
Despite the positive growth in foreign investment, there were still some challenges faced by foreign investors in Vietnam in 2012. For example, the country’s legal system was still developing, and there were concerns about intellectual property rights protection. However, the government continued to work towards addressing these issues, and the country’s improving business environment and growing economy made it an attractive destination for foreign investment.
Overall, foreign investment in Vietnam in 2012 was a positive development, and the country’s favorable investment environment, low labor costs, and supportive government policies continued to make it an attractive destination for foreign investors.
In conclusion, the foreign investment environment in Vietnam in 2012 was positive, and the country continued to show growth in attracting foreign investment. While there were still some challenges, the government’s efforts to improve the investment environment and the country’s attractive characteristics made it an attractive destination for foreign investors. If you are interested in investing in Vietnam, it is important to work with a competent and skilled market entry expert who can help you navigate the investment landscape and take advantage of the opportunities available.
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