Hastings International and Comparative Law Review


Camellia Ngo


The investment promotion strategy of any nation, as set forth in its investment promotion laws, plays a crucial role in its economic development. Vietnam, rumored to be Southeast Asia's "next Asian Tiger," currently maintains one of the most liberal foreign investment codes of any developing nation. Vietnam currently looks to Thailand as a model for economic development. This note discusses the 1987 Law on Foreign Investment in Vietnam (1987 FIL) and the Investment Promotion Act of Thailand and contrasts the two countries' strategies for developing their economies through enactment of foreign investment promotion legislation. This note concludes that Vietnam's 1987 FIL will not guide its economic development to parallel that of Thailand, primarily because Vietnam requires extensive governmental approval prior to commencement of foreign investment activity.