Vietnam has secured its place among the top five favored investment destinations in Asia’s emerging and developing economies, as revealed by the Global Opportunity Index.
Released by the Milken Institute in the United States on March 5, the Global Opportunity Index (GOI) remains a robust predictor of capital movements even ten years after its inception. This index alone accounts for 64.7 percent of the variation in per capita foreign direct investment (FDI) inflows and 51.7 percent of per capita portfolio inflows to countries worldwide. The 2024 GOI report offers a comprehensive overview of countries’ attractiveness and capital inflows on a global scale.
In this year’s global ranking, Vietnam secured the 65th position. Notably, among Asia’s emerging and developing (E&D) economies, Vietnam emerged as a favored destination for investors, ranking 5th in the region, following Malaysia, Thailand, China, and Indonesia.
Over recent years, Vietnam has seen a surge in interest from foreign investors. According to the Ministry of Planning and Investment, Vietnam attracted a substantial $36.61 billion in foreign direct investment (FDI) capital in 2023, marking a 32.1 percent increase year-on-year. Realized FDI surged by 3.5 percent from the previous year to reach a record level of $23.18 billion. In the initial two months of 2024, FDI inflows into Vietnam totaled $4.29 billion, reflecting a 38.6 percent increase compared to the same period in 2023.
Maggie Switek, senior director at the Milken Institute and co-author of the report, stated, “While advanced economies offer stability, investors seeking high-growth returns continue to demonstrate interest in emerging and developing economies.”
Between 2018 and 2022, E&D Asia attracted over half of the total capital flowing into E&D economies. However, due to escalating tensions between the United States and China, capital inflows to E&D Asia plummeted by 75.4 percent during 2022.
Denmark clinched the top spot in this year’s ranking, followed by Sweden and Finland. Meanwhile, the United States ascended one position on the index, securing fourth place.
To construct the index, the Milken Institute assesses investment opportunities across 100 variables grouped into five categories and 14 sub-categories. These major categories include Business Perception, Financial Services, International Standards & Policy, Economic Fundamentals, and Institutional Frameworks.