I am republishing this article on my website because my remarks were quoted in the original piece. The original article was published in 2009 on the Vietnam Business Forum website.
Vietnam is currently more attractive than Thailand in terms of foreign direct investment (FDI) attraction, even amid the global economic slowdown, according to a new survey conducted by KAE Marketing Consultant Company.
The survey reflects the opinions of executives from major foreign companies operating in both Vietnam and Thailand.
Key findings include:
- 63% of respondents selected Vietnam as their preferred investment destination
- 21% believe Vietnam’s investment environment is better than Thailand’s
- 15% feel both countries offer the same level of opportunity
Damien Duhamel, Director of KAE Asia, stated, “Vietnam has gained impressive GDP growth of over 7 percent over the past two decades,” adding that the country’s economic prospects surpass Thailand’s in both the short and long term.
Vietnam has been a favorable destination for foreign investment since 2006. It attracted US$20 billion in FDI in 2007 and over US$60 billion in 2008.
Given that Vietnam’s GDP per capita is four times lower than Thailand’s and half that of China’s, the country holds strong potential for future consumption growth.
Seck Yee Chung of Baker & McKenzie expressed optimism about Vietnam’s economic outlook for the current year.
Duhamel further projected significant sector-specific growth in Vietnam, estimating:
- 15% growth in the automotive sector
- 20% growth in health equipment
- 40% growth in e-commerce
However, Duhamel also cautioned foreign investors about rising risks in Vietnam, citing concerns over inflation and soaring consumer price index (CPI). Vietnam Economic Times
