Vietnam in Top 5 for investors amongst emerging economies in Asia

Vietnam continues to attract foreign investors, ranking 65th out of 129 countries in the Milken Institute's recent Global Opportunity Index (GOI).

Among emerging and developing Asian economies, Vietnam places an impressive 5th. The GOI, established over a decade ago, is a respected predictor of foreign direct investment (FDI) flows.

The index evaluates countries across five categories: business perception, economic fundamentals, financial services, institutional framework, and international standards/policies. Vietnam's ongoing success in attracting FDI was reflected in 2023's figures, which reached $36.61 billion – a growth of over 32% compared to 2022 and among the highest levels in 15 years.

Maggie Switek, Senior Director of Research at the Milken Institute, notes the strong appeal of emerging and developing economies for investors seeking high returns. Between 2018 and 2022, these economies attracted a yearly average of $1.3 trillion in capital inflows – a 10.5% increase from the previous five-year period.

Asian economies have seen their rankings improve in recent GOI reports, and the region received over half of capital flows to emerging and developing countries between 2018 and 2022. Yet, US-China tensions significantly dampened investment inflows in 2022, leading to a 75.4% decline.

Interestingly, the Milken Institute's report reveals a European dominance among top investment destinations. Denmark leads in business perception and ease of doing business, followed by Sweden, Finland, the US, and the UK.