As part of the Doi Moi policy, Vietnam enacted the Foreign Investment Law in 1987.
This allowed foreign companies to establish operations in Vietnam.
Since then, investment by foreign companies in Vietnam has become more active.
When a foreign company establishes a local subsidiary or company in Vietnam, it is called FDI (Foreign Direct Investment).
Looking at FDI trends in Vietnam since 1987, we see that FDI in the three years from 1988 to 1990 was US$1.6035 billion, but from 1991 to 1995, it increased dramatically to US$18.3791 billion.
In 1992, Swiss-based Nestlé established a joint venture, La Vie, in Vietnam.
In the same year, German-based coffee trading company NKG (Neumann Kaffee Gruppe) established its first coffee processing factory in Binh Duong Province.
Subsequently, Louis Dreyfus Company B.V. (LDC), a large grain trading company based in Switzerland with French origins, major coffee trading company Sucafina, and Singapore-based Olam increased their handling of Vietnamese coffee and established local subsidiaries.
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