On January 12th, the British foreign investment news website fdiintelligence.com published an article explaining why many Asian economies, with Viet Nam as a prime example, can effectively leverage foreign direct investment (FDI) to boost growth, while others struggle to transform these flows into sustainable development drivers.

According to the article, similar to other regions, the effectiveness of FDI flows into Asia depends on each individual project, but the overall trajectory of capital inflows into the continent is significantly influenced by geopolitical , economic, business environment, and cultural factors. A crucial determining factor for the success of FDI is political and economic stability.

The article argues that countries like Singapore, South Korea, and Viet Nam have built investor confidence through consistent governance, transparent legal systems, and business-friendly reforms. High-quality infrastructure, such as special economic zones and efficient logistics networks, along with a skilled, low-cost workforce, are also crucial factors. This is especially true across Asia, although these characteristics vary considerably from country to country.

Viet Nam is a prime example of success. Take the American technology giant Intel as a case in point. Since establishing a test and assembly plant in the Ho Chi Minh City High-Tech Park in 2010, the American chip manufacturer has significantly expanded its operations at this facility through investments totaling $1.5 billion. Behind Intel's success lies a rapidly developing semiconductor ecosystem, a highly experienced workforce, and Viet Nam's role as a low-cost link in the global electronics supply chain. In October 2025, Intel Vietnam General Manager Kenneth Tse discussed with government representatives the possibility of adding more production lines to Vietnam in the near future.

According to the article, a suitable geopolitical positioning, as well as participation in regional trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP - comprising 15 member countries), helps increase credibility in the eyes of investors. In the context of many Western governments shifting towards protectionism under the guise of protecting security and sovereignty over strategic sectors, Asia's ability to buck the trend and maintain open trade and investment flows could help sustain FDI growth.

Source: Tin Tuc News