Việt Nam emerges as typical case of Asia’s FDI success

Việt Nam emerges as typical case of Asia’s FDI success

Việt Nam has emerged as a leading FDI destination in Asia, driven by political stability, strong infrastructure and deep integration into global supply chains.

With many advantages, Việt Nam has opportunities to integrate more deeply into the global technology value chain. — VNA/VNS Photo

Many Asian economies have tapped into foreign direct investment (FDI) to fuel economic growth, with Việt Nam standing out as a notable success, while others still face challenges in turning capital inflows into lasting development.

According to an analysis published by fdiintelligence.com, the performance of FDI in Asia, as in other regions, depends largely on individual projects.

Broader factors such as geopolitics, economic trends, the business climate and cultural context also play an important role in shaping investment flows across the region. Among these, political and economic stability are seen as key drivers of FDI success.

The article notes that countries including Singapore, the Republic of Korea and Việt Nam have strengthened investor confidence through consistent governance, transparent legal frameworks and business-friendly reforms.

High-quality infrastructure – such as special economic zones and efficient logistics networks – along with a skilled and cost-competitive workforce, has also contributed significantly to their appeal as investment destinations.

Việt Nam is cited as a representative example. The article highlights US technology group Intel, which has expanded operations at its testing and assembly facility in the Saigon Hi-Tech Park since its establishment in 2010, with total investment reaching US$1.5 billion. The expansion has been supported by Việt Nam’s rapidly developing semiconductor ecosystem, an experienced workforce and the country’s role as a lower-cost link in global electronics supply chains.

In October, Intel Việt Nam’s General Director Kenneth Tse discussed with government representatives the possibility of bringing additional production lines to Việt Nam in the near future.

The analysis also points out that geopolitical positioning and participation in regional trade frameworks – notably the 15-member Regional Comprehensive Economic Partnership (RCEP) – help reinforce investor confidence.

As many Western governments move towards more protectionist policies under the banner of security and strategic autonomy, Asia’s ability to maintain open trade and investment flows is viewed as an important factor in sustaining FDI momentum. 

Bizhub