| VIETNAM
MARKET
Positive signs have been noticed in both Vietnamese domestic and foreign
markets. 2010 will be a year of bright prospect for the Vietnamese economy
and businesses.
The year 2010 will make headway in turnover and profit. Export businesses
must increase promotion activities and production, reduce production cost
to ensure stable competitiveness. Businesses focusing on domestic market
must study consumers' liking to readjust business strategy and selling
policy.
INVESTMENT
The world economy is expected to have a stronger impetus of recovery in
2010 than in 2009. Accordingly, FDI inflows should bounce back in the
short term as investors become increasingly optimistic about medium- and
long-term economic prospects.
Faced with this trend, Vietnam is thought to have a good chance to increase
its FDI sources. Recent research by the UN Conference on Trade and Development
(UNCTAD) shows that Vietnam is one of the 15 countries most highly praised
for their investment climate and is considered an attractive destination
for FDI in 2010. It is believed that the Vietnamese economy’s resilience
will strengthen foreign investor confidence and boost the flow of FDI
into Vietnam. The Vietnamese government’s policies on equitizing state-owned
enterprises and on transforming the operation models of certain corporations
and groups and its approval of the sale of certain businesses to foreign
investors are very likely to accelerate FDI inflows.
It is expected that new registered FDI will rise to some US$19 billion
in 2010, and additional capital from existing projects to about US$3 billion.
This year’s total of FDI implemented is estimated to be between US$10-11
billion. In the 2010 FDI Confidence Index results, Vietnam has maintained
its 12th-place ranking thanks to continued economic progress and increased
openness. The country's entry into the WTO in 2007 pushed Vietnam to implement
reforms that encourage foreign investment.
Vietnam Rank: 12 (Change from 2007: Unchanged)
Ease of Doing Business Ranking: 93
2008 FDI Inflows: $8.1 billion
2009 GDP: $92.6 billion
2009 Per-Capita GDP: $1,060
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