The Vietnamese government has approved an interest rate subsidy of 4% for short-term Vietnam dong loans as spart of an economic stimulus package. The subsidy is designed to assist enterprises and individuals who need capital as a result of the global economic crisis to remain in production, reduce output prices and create jobs.
In a meeting with WEF Managing Director Borge Brende, the Deputy Prime Minister asserted that Vietnam is willing and able to host the East Asia WEF in 2010. Participants at the forum considered Vietnam, which posted the highest growth rate in Southeast Asia, of 6 percent, and attracted USD 60 billion in foreign direct investment in 2008, as one of just a few attractive investment destinations.
Since Vietnam joined the WTO in 2007, the country eagerly implements its resulting obligations. Important legal changes have taken effect on January 01, 2009. For the first time foreign enterprises are now able to get licenses for distribution services in the wholesale and retail sector without the need of a Vietnamese Partner. With regard to this the well established A.T. Kearny Global Retail Development Index 2008 lists Vietnam as the top investment destination for retailers, ahead of local powerhouses China and India. The same goes for the wholesale sector.
The second annual Pricewaterhouse Coopers Emerging Market 20 Index shows that Vietnam remains attractive for foreign investment. Vietnam is now ranked the fifth most attractive emerging market destination for investment in manufacturing. Thailand rank eleventh, Malaysia thirteenth, China fourteenth.
Although countries like Vietnam and Cambodia are still relatively small economies, their low cost base can sometimes offer higher margins for manufacturers, the report said.