Abstract: "Since 1986, Vietnam has carried out various measures to attract foreign direct investment (FDI), in line with deepened integration into the regional and world economies. The legal framework for FDI entry into the country has improved since 1987, with the promulgation of and numerous amendments to the Foreign Investment Law, alongside other legal-economic reforms concerning trading rights, the tarification of non-tariff barriers, etc. These structural and procedural changes facilitated FDI inflows to Vietnam, though such inflows varied during different periods. There are, however, some concerns about the effectiveness of recent FDI inflows, particularly regarding the low ratio of implemented capital over registered capital, and the State?s limited ability to manage capital inflows. Vietnam also took some practical steps, and experienced a string of success, in various aspects of FDI promotion ? such as the introduction of export processing zones and industrial zones, the supply of infrastructure facilities, the delegation of FDI management authority to local governments, and the dialogue mechanism with the Government of Japan to support FDI operations. Key lessons from FDI promotion in Vietnam include: (i) the use of proper policies to support FDI promotion; (ii) greater focus on establishing a liberal neutral environment; (iii) provision of necessary conditions for the effective decentralization of FDI management; (iv) promotion of supporting industries; and (v) closer consultation with existing and potential investors. Learning from Vietnam?s experience, Myanmar needs: (i) an integrative and comprehensive policy agenda towards FDI promotion; (ii) a broad framework for economic reforms that accommodate viable FDI strategies; (iii) an approach to FDI that incorporates elements of gradualism and selectivity; and (iv) a stable, transparent, and predictable policy and economic environment..."