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Vietnam can be considered as a &quot;jewel&quot; of Southeast Asia in attracting foreign direct investment (FDI) inflows, according to the view put forward by several international institutions.

The country&rsquo;s market overall attractiveness can be put down to the Government&rsquo;s support for the startup ecosystem, which is anticipated to continue to move forward in 2023.

Most notably, investment funds have committed to injecting capital into Vietnamese innovative startups, with this figure gradually increasing from US$425 million in 2019 to US$815 million in 2020. The committed capital in the 2020 - 2022 period reached nearly US$2 billion, whilst the growth momentum is expected to be maintained into 2023.

Vinnie Lauria, founder and CEO of Golden Gate Ventures, noted Vietnam has become a bright spot for attracting investment thanks to the country&rsquo;s political stability, young and highly-qualified workforce, developed infrastructure, digital skills, and innovation capability.

The country has developed into an attractive destination for high-quality FDI inflows, with large international enterprises seeking investment opportunities to diversify their supply chains and limit their reliance on the Chinese market, he noted.

The speed of Vietnamese innovation, especially in the technological market, has been rapid, he said, adding that with the growth rate over the past decade, Vietnam is predicted to seize a wealth of opportunities from existing platforms such as education, science and technology, infrastructure for technology, and the processing industry moving forward.

Lauria affirmed that several large global hi-tech companies have moved to establish branches in Vietnam, including Google, Intel, Amazon, and Samsung, creating more development opportunities for local businesses, especially start-up firms.

Investment funds and innovative businesses will serve as the Government&rsquo;s important partners in terms of contributing ideas in the formulation of investment policies for startups, thereby helping turn the country into an increasingly attractive business environment in the region and throughout the world, he said.

Minister of Planning and Investment Nguyen Chi Dung revealed that the Ministry plans to study the possibility of formulating the Law on Venture Investment and propose a mechanism in order to set up a fund aimed at supporting innovative activities that are mobilised from socialized capital.

Furthermore, the Government&rsquo;s incentive policies are anticipated to offer a fresh impetus to the strong development of the innovation ecosystem in the long-run, which will provide a solid foundation for the country to further attract FDI in future.

https://english.vov.vn/

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