Vietnam overcame regional peers in Southeast Asia, including Malaysia, Indonesia and Singapore to rank 8th among the world’s leading 29 countries to invest in, up from 23rd out of 25 countries in 2018, according to US News & World Report. 

“Doi moi” economic policy reform beginning in 1986 have helped Vietnam’s transition to a more modern and competitive nation. 

State-owned enterprises and agriculture, which once monopolized the economy, are losing prominence as the nation works to achieve sustainable development through more open trade and industry, including food processing, garment manufacturing, machine-building and mining.

Topping the list is Uruguay, which made a dramatic jump from its 12th ranking in 2018. Business decision makers attributed the rise of Uruguay to favorable tax environment, dynamic economy and economic stability. It is followed by Saudi Arabia and Costa Rica in the second and third places, respectively. 

Among other Southeast Asian nations, Malaysia saw its ranking drop from 4th in 2018 to 13th this year, and Singapore from 5th to 14th. 

Notably, Indonesia, the second most attractive investment destination in 2018, now ranked 18th in the list. 

“The Best Countries to Invest In” ranking draws from the results of a global perceptions-based survey and ranks countries based on the highest scores among nearly 7,000 business decision makers on a compilation of eight equally weighted country attributes: level of corruption, dynamism, economic  stability, entrepreneurship, favorable tax environment, innovation, skilled labor force and technological expertise.

Those attributes are developed from a report in 2011 released by the World Bank, stating things that make a country unique – its people, environment, relationships, framework and teachings – which are four distinct factors that motivate an individual or corporation to invest in a country: natural resources, markets, efficiency and strategic assets like technologies or brands.