(VOVworld) – Stratfor, a US geopolitical intelligence firm, has run an article about Vietnam’s investment climate. It says the recent positive signals in foreign direct investment to Vietnam can be attributed to the government’s determination to attract investors in the face of the global economic downturn since 2009.

Electronic component manufacturing in Mtec Vietnam (Photo: Thanh Vu/VNA)

According to the article, FDI into Vietnam has recovered remarkably and has mainly been attracted to the areas which previously weren’t paid much attention to by investors. FDI diversification can help Vietnam maintain its appearance as an attractive, newly-emerging economy in a highly competitive region.

Vietnam has a competitive advantage with its young and abundant workforce, a network of seaports, a stable political system and policies to lure investment after Vietnam opened its doors to the world. FDI is playing an important role in Vietnam’s changing economy, accounting for nearly 60% of total export revenue and 40% of the total industrial output. FDI enterprises have generated about 2 million jobs for local regions.

Stratfor says that the abundant workforce at low costs, the country’s strategic geographical position, and the government’s determination to reform the economy, are keys to Vietnam maintaining its outstanding position as an attractive investment destination.