The report says the economies in the region have prospered in 2015 thanks to an increase in foreign direct investment (FDI) and exports by foreign invested companies as well as increased commercial real estate construction.
World Bank’s Senior Economist Sebastian Eckardt told a Vietnam News Agency reporter that deeper integration among ASEAN countries into the global economy will serve to further boost economic cooperation, trade and FDI.
“Additionally, I think there are opportunities for Vietnam, in particular, to benefit from investment from outside ASEAN by investors who want to take advantage of Vietnam as an entry to the ASEAN market as a whole,” he said.
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“There are also going to be more opportunities for Vietnamese companies to invest in other ASEAN economies to increase trade links and benefit from new market opportunities in those markets.”
However, Eckardt suggested that the Vietnam government continue to improve the business environment, simplify administrative procedures and ensure fair competition among domestic and foreign enterprises if it wants to attract more investment.
At the Global Investment Forum held in Vietnam at the end of September, Prime Minister Nguyen Tan Dung stressed “Vietnam is actively and positively integrated into ASEAN, a dynamic market with a combined population of 652 million and gross domestic product (GDP) of about US$2.5 trillion.
“With a relatively high economic growth rate, it is expected that by 2030, the bloc’s GDP will reach US$10 trillion,” said Prime Minister Dung
The government leader said as part of an effort to entice more FDI, the government is making every effort to improve its market economy regulations, focusing on improving legal frameworks and administrative procedures, especially those pertaining to improving its work forces quality and infrastructure.
The Law on Investment and the revised Law on Enterprise, which took effect July 1, 2015, provided information on prohibited and conditional business sectors. Therefore, they act as a guideline for foreign investors who wish to invest in Vietnam.
According to economic experts, Vietnam will most likely attract selectively high value-added and quality, modern technology and environmentally-friendly projects, as well as large scale projects with competitive products that participate in global value chains of transnational companies.
The country will also encourage, create good conditions for and strengthen connections among foreign invested businesses, as well as between them and domestic ones.
In the coming time, especially as Vietnam joins the ASEAN Economic Community (AEC) at the end of this year, the liberalization of trade and services will not only help enhance foreign investors’ trust in ASEAN, but also contribute to strengthening regional investment.
A representative of the army-run telecom group Viettel said ASEAN is an attractive market, as ASEAN states have close economic ties with Vietnam. The group is investing in Cambodia and Laos. Of these, Cambodia is its largest market.
At the 27th ASEAN Summit in Kuala Lumpur, Malaysia, leaders of the regional countries signed the “2015 Kuala Lumpur Declaration on the Establishment of the ASEAN Economic Community” on December 31, 2015, in the witness of leaders from dialogue partners and the United Nations.
The establishment of AEC will become a turning point, marking the comprehensive integration of the Southeast Asian economies says the World Bank. Regional economic competitiveness will improve, making ASEAN a large potential market most lucrative to foreign investors.