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The economy of Vietnam took a new turn when the VIth Congress of the Communist Party of Vietnam took the decision of building a market economy, which will remain under the state control. They started trying to deepen international economic relations to open up new opportunities for the development of the economy of Vietnam. The Foreign Investment Policy in Vietnam played a great role in this attempt.
Foreign Investment Policy in Vietnam primarily includes foreign direct investment. FDI plays an important role in Vietnamese economy as the possibilities of domestic capital raising are limited. The law of FDI in Vietnam was passed on 29th December, 1987. The law has been revived in 1990, 1992, 1996 and in 2000. It marked a crucial conjuncture in the development of foreign economic relations of Vietnam.
Foreign Investment Policy of Vietnam encourages foreign organizations as well as nationals for investing capital and technology in this Southeast Asian countries. The ownership of the invested capital is guaranteed by the state. To make the inflow of foreign investment steady, the government of Vietnam have created many favorable conditions and easy formalities for the investors. After introducing the law the investment procedures were made easy.
The main aim of the Foreign Investment Policy in Vietnam is to draw foreign capital, advance management skill and technology, so that the country's potential can be developed. Above all, the main concern of policy makers is to improve the standard of living of Vietnam people.
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