Vietnam builds hopes on FDI reforms

Author: Ashley Lee | Published: 14 Jul 2015

A flurry of amendments to Vietnam’s foreign investment regime is hoped to ease the path for potential market entrants.

A number of significant investments over the past few years – including Warburg Pincus’s June 29 announcement that it will invest a further $100 million rea-estate developer Vingroup’s retail arm Vincom Retail and Mondolez’s acquisition of 80% of snack company Kinh Do – have drawn attention back to the frontier market.

The country would also benefit from the signing of the Trans-Pacific Partnership (TPP), and its government has recently taken steps to resolve international investors’ concerns. Lawyers believe that some reforms have been more beneficial than others.

"What’s caused the uptick of interest in the country isn’t really the new investment law or enterprise law, but instead the new securities law and the TPP regime coming down the road," said Tony Foster, managing partner of Freshfields Bruckhaus Deringer in...