An electronic equipment production line at Japan-invested Stanley Electric Vietnam Co., Ltd. in Hanoi. (Photo: Danh Lam / VNA)

The article cited data showing that Vietnam’s trade-to-GDP ratio was 200.4%, which was the sixth highest in the world. Similarly, FDI is also playing an important role in Vietnam’s economic development. In 2019, the net annual FDI inflow of Vietnam was equivalent to 6.3% of its GDP, which was the fourth highest in Southeast Asia.

Vietnam’s openness to trade and FDI originated from a combination of economic and strategic considerations, said ISEAS. Vietnam considers international economic integration as a key measure to promote socio-economic development and considers foreign trade and investment as key tools to transform and upgrade its economy. At the same time, Vietnam also has strategic interests in pursuing open trade regimes, especially FTAs with key economies, and attracting FDI, according to ISEAS.