The purpose of this research is to analyze Foreign Direct Investment (FDI) towards Vietnam and Indonesia. This research is to find the answer and to give an argument about the reason of Vietnam is more attractive as an investment destination than Indonesia. The method used in this research paper is a qualitative research method with an exploratory approach that are supported by interviewing 5 experts from Indonesia and Vietnam; also, secondary data analysis. By using the FDI motivation theory by Dunning this indicates that Vietnam offers more favorable conditions rather than Indonesia for FDI including lower labor cost, stronger infrastructure development, Tax incentives, and other factors. On the other hand, Indonesia offers a large market size and demographic advantage. However, Indonesia needs to provide a safety environment for the investor.