Money is not pouring in yet, but the new law represents a significant liberalization from previous investment laws. It seeks to promote manufacturing in the country to help eradicate Vietnam's chronic unemployment and includes guarantees against expatriation of investment capital and nationalization.
Problems remain in attracting foreign investment, however.
The dong, Vietnam's currency, is weak in the foreign exchanges, having four different exchange rates at any given time, depending on the transaction. Another problem revolves around import-export taxes. That, at least, is the analysis of the Oil, Chemical, and Atomic Workers International Union. Average weekly earnings have fallen by 15 percent in real terms since 1972, according to the Council's report. Moreover, the report shows that most new jobs have been in the lower-paying retail trade and health and business service sectors.