Vietnam is rapidly establishing itself as one of Southeast Asia’s most attractive destinations for foreign direct investment (FDI), supported by its favourable demographics, trade agreements, and investor-friendly reforms, according to a recent analysis on thailandbusinessnews.com on August 18.

The report, authored by Nguyen Trang and Boris Sullivan, highlights Vietnam’s strong momentum in attracting overseas capital. In 2023, the country secured $36.61bn in registered FDI, a year-on-year increase of 32.1%, confirming its growing role as a global manufacturing hub.

Vietnam’s steady economic performance underpins this trend. Annual GDP growth is projected at 5–6%, driven by robust domestic consumption, healthy export activity, and sustained investment flows. Political stability provides predictability, giving the country an edge over many other emerging markets.

The workforce is another major advantage. With a labour pool of around 56mn people and an average age of just over 34, Vietnam offers a skilled, cost-competitive demographic profile well suited to labour-intensive sectors such as textiles and electronics.

On the policy front, recent legal reforms – including the 2020 Laws on Investment and Enterprises and the Public-Private Partnership Law – have improved the business environment. 

Integration into global trade frameworks, particularly the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), has further boosted investor confidence. The EVFTA alone is expected to lift Vietnamese exports to the European Union by more than 40% by 2025.

Beyond manufacturing, Vietnam is increasingly attracting high-tech investment, particularly in artificial intelligence, semiconductors, electronics and telecommunications, with significant contributions from Japan, South Korea and Singapore. Other sectors such as real estate and renewable energy are also gaining traction.

Geography and infrastructure reinforce these strengths. Situated strategically in Southeast Asia and continuing to improve its transport and logistics networks, Vietnam offers international investors efficient access to both regional and global markets.

According to the analysis, Vietnam’s ability to draw high-tech investment, integrate into supply chains and sustain rapid FDI inflows has placed it ahead of many ASEAN peers, positioning the country as a rising star for long-term investment in the region.