European capital to flow into Vietnam

Investors are withdrawing their capital from Greece, Italy, Spain and other EU countries and pouring it into Vietnam this year, reports Radio Voice of Russia.

Experts say investors are choosing Vietnam for its political and social stability, as well as the decline in its poverty rate from 58 percent of the population in the 1990s to only 9.5 percent in 2010.

International financial experts also noted the many breakthroughs Vietnam has made in the past decade. Bloomberg predicts that Vietnam could be the third best investment economy in Asia, after China and India.

Vietnam is among the top 10 dynamically developing countries in the world. Not long ago, the country's annual GDP was growing by 8 percent and, despite the current global economic meltdown, it is maintaining GDP growth of 6.8 percent while progressing steadily along its road to industrialization.

Seekingalpha website believes Vietnam is attracting global investors based on its future population of 90 million and a rapidly expanding middle class. In addition, the country is benefiting from the fact that more than half of its population is under 30 years old.

Given the increasing costs of doing business in China, Vietnam's cheap and abundant labour force is another advantage that makes it an appealing new option for multinational companies.

Vietnam now has 135 industrial and export processing zones with many attractive tax incentives for investors from the US, Europe and Asia.

Many Thai enterprises have expanded their company branches in Vietnam in anticipation of the country becoming a major trade and investment centre in the ASEAN region by 2015.

Experts also consider tourism infrastructure in Vietnam as a lucrative investment market which is predicted to attract more than US$12 billion in FDI in the next decade.