Vietnam’s foreign trade entered a new phase with its official entry into the World Trade Organization (WTO) in November 2006. Vietnam has become a very important market for Taiwanese businesses due to its large demographic dividend and its geographical location which gives it an advantage in entering ASEAN markets. Therefore, the main aim of this study is to examine an investment climate evaluation of Vietnam and to provide helpful suggestions to Taiwanese businesses and enterprises. Vietnamese industry and commerce costs are relatively inexpensive and it has become an important market for Taiwanese businesses, taking the lead in opening up Southeast Asian markets. On the other hand, some disadvantages include soaring inflation in Vietnam in recent years, an almost twofold increase in the basic wage, incessant strikes, and lax law enforcement, causing the operating costs of Taiwanese businesses to increase when investing in Vietnamese factories. This study concludes by proposing four main reference strategies for Taiwanese businesses and enterprises. Keywords: Investment Environment, Foreign Direct Investment, FDI