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					FOREIGN INVESTMENT - Vietnam an attractive destination for foreign investors

Germany's EMFIS news provider last weekend assessed that Vietnamese economy in 2009 had grown strongly but its inflation remained at dangerous level. Vietnamese stock market increased sharply when entering the first trading sessions of 2010. Particularly, the VN Index on January 14 surged to 534 pts and has soared by nearly 8 percent so the year early, marking the highest growth in Asia. The positive development of Vietnamese stock market led to a number of notable things, in which Letindex of Vietnam in recent months was very low. In the forth quarter of 2009, Letindex was below 1.9 percent, the lowest level in Asia. The recovery of the Vietnamese stock market in the last days had many reasons. First off, Vietnamese government released some interventions to loosen share transactions. In addition, the disordered gold trading will be suspended till late March 2010. Also, initial statistics on the 2009 economic growth of Vietnam (that had been announced already) were at high prospect. In details, total Gross Domestic Product (GDP) of Vietnam last year still grew by 5.32 percent against 2008's 6.18 percent despite the financial crisis. GDP surged again in the last half of 2009 especially that of Q4 2009 rose by 6.9 percent. The economic recovery was been shown clearly by the money supply. In 2009, the money supply for lending of banks increased by 38 percent year-on-year, mainly in construction field which helped supporting the domestic economy. EMFIS said that Vietnam, along with China and India still is one of few nations overcoming the financial crisis without any "tattoo". According to EMFIS, in medium term, Vietnam will continue being one of countries attracting the global attention with the wave of privatisation, modernisation and urbanisation are continued and the prospectus of many social classes keeps growing. International investors forecasted that in next years, there will be billions of US dollar being pumped into Vietnam's economy.VNS

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