Viet Nam provides attractive conditions for investors and is working in the right direction. Attention should be given to lowering the restrictions on FDI which are currently in effect.
Among the three EIRA risk areas, breach of State obligations and unpredictable policy and regulatory change are lower compared to discrimination between foreign and domestic investors.
Viet Nam has a good performance on three of the EIRA indicators, and a moderate performance on one indicator. Rule of law and management of decision-making processes are at 75 and 70 points. It has also received a good score (67) on foresight of policy and regulatory change, while regulatory environment and investment conditions is at 42.
On a more detailed level, Viet Nam’s overall subindicator performance is good. The highest-scoring sub-indicators are management and settlement of investor-State disputes and respect for property rights, both at 75. The performance on transparency is also good, with a score of 72. It is followed by communication of vision and policies with 71 points. Institutional governance and robustness of policy goals and commitments have received 69 and 63 points, respectively. Regulatory effectiveness is at 44. The lowest-scoring sub-indicator is restrictions on FDI with 40 points.