IS VIETNAM THE NEW ASIAN TIGER? SCOREBOARD AND MACROECONOMIC EVALUATION OF THE ATTRACTIVENESS FOR FOREIGN DIRECT INVESTMENT

Following economies like China and India, also Vietnam has managed to increase its attractiveness for foreign direct investments in recent years. In contrast to many European economies Vietnam had overcome the financial and economic crisis in 2008 quickly and turned back to high growth rates already in 2010/11. Nevertheless many European economies and companies still regard Vietnam as an unstable and fragile economy. Therefore the questions arise which general investment conditions are of importance for companies that are investing abroad, and which factors make Vietnam attractive as a business location for foreign companies? After a presentation of stylized facts about Vietnam and a discussion of location theories and location factors, we develop a scoring method to evaluate general investment conditions. Eight of the member states of the European Union in Central and Eastern Europe are used as reference groups to test the scoreboard rating tool, before it is applied for Vietnam

Keywords:

FDI, Vietnam country evaluation, macroeconomics,

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