The article said Vietnam is looking to shift away from heavy industry and becoming more selective in the sectors it promotes for foreign investment. “Building upon its status as a manufacturing hub for global brands, it is orienting itself towards technology, embracing more technical industries.”

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At the groundbreaking ceremony of LEGO Group's USD 1.3 billion project in Binh Duong provice

The author said that the Vietnamese government has made a concerted effort to attract investment through a variety of incentives. In ASEAN, the country ranks behind only Indonesia and Singapore in terms of international trade relationships.

One of the most promising recent developments has been its strategic partnership with the Republic of Korea, which has already brought in nearly USD 18 billion in investment from Samsung alone.

Japan is a long-standing trading partner of Vietnam, and in the past decade, Japanese corporates have relocated production to the country en masse. Meanwhile, the E.U. is a major partner for Vietnam – the country’s third largest export market and its fifth largest partner for imports.

The article noted that international companies, prompted by government regulation and industry-wide ESG (Environmental, Social, and Governance) commitments, are increasingly applying sustainability standards across borders through their supply chains. Vietnam is raising its own ESG standards accordingly to maintain their valuable trade relationships.

The author said international interest in financing Southeast Asia’s energy transition is certainly there. The challenge for ASEAN nations, including Vietnam, is upgrading and optimizing their existing infrastructure which will be a costly and time consuming endeavor.

Source: VNA