Vietnam, with its young demographic, growing incomes and large population, is considered a hugely promising market for retailers.

To lure more foreign investment in infrastructure, Vietnam needs to have a clear public-private partnership (PPP) framework.

Experts have pointed out a number of hindrances to SOE privatization, including weak corporate governance, valuation methods and restricted foreign ownership.

According to the draft law, conditions for 12 business lines including commercial arbitration organizations, logistics and franchising, are proposed to remove.

Experts have called for loosened legislation to facilitate foreign ownership of property in the country.

The guarantee of foreign investors` rights is a key to the investors as regulations had been changed frequently, making it harder for them to invest in Vietnamese assets, according to an expert.

Foreign firms usually apply the ‘China+1’ model, which means that they build a facility in China and then look for a new destination to become an intermediary or a target for expansion and relocation in the future.

Private investors, especially foreign investors, remain skittish about investing in infrastructure projects due to high risks, long-term payout schedules, and site clearance issues.

Vietnam is one of the most attractive destinations for the industrial sector in Southeast Asia and JLL expects that the trend will continue in the second half of 2019 and interest from foreign investors in Vietnam will remain strong.

John Chong, CEO of Maybank Kim Eng, said in order to take advantage of the shifting of FDI inflow from tech firms, Vietnam must make investments to improve its labor force and infrastructure.

Though the corporate bond market really needs to be developed in order to reduce the dependence of the economy on commercial banks, corporate bond issuance must be transparent and secure.

The new policies will simplify procedures, explaining that instead of 95 laws and ordinances, investors only have to relate to two legal documents regulating planning. This is a way to reduce administrative procedures and increase transparency and stability of the law.

The country plans to need about US$480 billion for infrastructure investment by 2020, with additional projects in the pipeline including about 1,380 km of highway and around eleven power plants.

As its labor cost is equal and even higher than other countries, Vietnam will have to replace the cheap labor advantage for the skilled workforce advantage in the coming time to raise the competitiveness.

Digital infrastructure, IoT, cyber security, and education for talents are among the most attractive targets to foreign investors interested in smart city development.