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<h4 style="text-align:justify">VOV.VN - An array of investor-friendly attributes are transforming Vietnam into one of Southeast Asia&rsquo;s most powerful magnets for foreign direct investment (FDI), magazine Global Finance of the United States recently wrote in its article &ldquo;Vietnam&rsquo;s Great Expectations&rdquo;.</h4>

<img alt="vietnam among leading regional power magnets for fdi picture 1" src="https://media.vov.vn/sites/default/files/styles/large/public/2023-09/vn_economy_2.jpg" title="vietnam among leading regional power magnets for fdi picture 1" />

The media outlet pointed out several key factors of Vietnam in attracting FDI, including boasting almost uniquely favourable demographics, with 40% of its population of 100 million under the age of 25.

The country has a 1,300-kilometre land border with China, meaning it has direct access to that market of 1.2 billion consumers, along its low wage costs, and a large, well-educated labour force. In addition, through its ASEAN membership the country has tariff-free access to 800 million more people across Southeast Asia.

&ldquo;The 2023 outlook for the business environment in Vietnam shows promising signs of improvement,&rdquo; says Thierry Mermet, CEO of Source Of Asia (SOA), a consultant to companies looking for business opportunities in Vietnam and ASEAN.&nbsp;

&ldquo;Vietnam is really cementing its position as one of the top three places where European business leaders want to invest,&rdquo; Mermet explained.

He cited EuroCham&rsquo;s recent Business Confidence Index report, saying &ldquo;3% more leaders have picked Vietnam as one of their top three investment choices. It&rsquo;s a solid indicator that we&rsquo;re on the right track.&rdquo;

Another indicator of the country&rsquo;s increasing pull is homegrown electric vehicle manufacturer VinFast, which recently became the world&rsquo;s third-largest automaker by market capitalisation, behind Tesla and Toyota, the US magazine noted.

Global Finance quoted Barry Elliott, vice president of Tomkins Ventures and a supply chain guru long active in Vietnam, assessing that, &ldquo;Since 2020, Vietnam has been one of the preferred destinations for Japanese firms choosing to shift their production to the ASEAN region in the first round of subsidy allocations. This trend continues.&rdquo;

The media outlet also confirmed that the US is in the process of boosting its economic and technical ties with Vietnam as the two countries recently agreed upon the establishment of their comprehensive strategic partnership during US President Joe Biden&rsquo;s visit to Vietnam in early September.

The US magazine went on to affirm that the overseas Vietnamese community has made great contributions to the country&rsquo;s economic development. On a recent trip to Ho Chi Minh City, Jacqueline Poh, managing director of Singapore&rsquo;s Economic Development Board (EDB), met with startups in financial services, robotics, and renewables. She noted the great influence made by a returning diaspora with deep experience abroad.

&ldquo;All have a can-do spirit, support for each other, and gumption,&rdquo; said Poh, &rdquo;This heady mix has created a conducive local startup ecosystem.&rdquo;

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