Business Standard
Barun Roy April 3, 2013 Last Updated at 21:50 IST
Foreign investors are losing faith in their sought-after destination on the back of slow reforms and rising corruption
Something has gone wrong for Vietnam. It finds it’s no longer the same darling of foreign investors it used to be. For three years in succession, it has failed to reach its foreign direct investment (FDI) targets and the government, judging from recent remarks by its ministers, is worried. If the slide continues, they fear, there will be an adverse impact on economic growth, and if economic growth falters, investors could become even more hesitant.
This forms a vicious circle, and for being caught in it, Vietnam has only itself to blame. It thought it was special because of its past, and the world would be wooing it no matter what. But business never waits for too long; if you aren’t ready for it, it’ll simply head for the next green pasture. That’s exactly what’s happening in Vietnam’s case. While it drags its feet in pushing or upgrading reforms, its old competitors are all tidying up their acts and new ones have arrived to stake their own claims.
Read more: http://www.business-standard.com/article/opinion/vietnam-s-lost-charm-113040300462_1.html
