From 1986, Vietnam has started transforming into the socialist-oriented market economy and achieved a significant economic improvement. Vietnam is a transition economy that has an impressive GDP growth rate of more than 5% from 2009 to 2018. It couples with locational advantages that make Vietnam a good destination for foreign investors. However, if Vietnam cannot take full advantage of foreign investors, the market can be dominated by foreign counterparts and Vietnam can be stuck at the low-middle income trap for a long time. My presentation will briefly introduce the attractive factors which make Vietnam a good place for investors. Then, I will explain the main problems with foreign investment at the macro level and the firm level.