In a report released recently, the agency said Vietnam’s cost competitiveness, educated workforce compared with peers, and entry into numerous regional and global free trade agreements (FTAs) should bode well for continued strong FDI inflows, particularly in the context of ongoing global supply chain diversification.

Illustrative image.

It cited statistics showing realised FDI in Vietnam last year was 22.4 billion USD (about 6% of GDP), up from 19.7 billion USD in 2021, and realised FDI until November 2023 was 20.2 billion USD.

The upgrade of the Vietnam-US relationship to a comprehensive strategic partnership in September could facilitate greater US FDI flows into and trade with Vietnam, according to the report.

The agency also noted the improvement of external finances, saying Vietnam’s foreign exchange reserves as of end-September 2023 reached 89 billion USD, after a sharp decline in 2022.

It has upgraded Vietnam’s Long-Term Issuer Default Ratings (IDRs) to 'BB ', which it said reflects the country’s favourable medium-term growth outlook.

The outlook is underpinned by robust FDI inflows, that the agency expects will continue to drive sustained improvements in Vietnam’s structural credit metrics.

“We have increasing confidence that near-term economic headwinds from property-sector stresses, weak external demand and delays in policy implementation owing to a corruption crackdown are unlikely to affect medium-term macroeconomic prospects and that policy buffers are sufficient to manage near-term risks,” Fitch said.

Vietnam post-Covid-19: Macro-economy stable, major balances guaranteed

Vietnam’s economy has steadily regained its growth momentum following the Covid-19 pandemic. Its growth rate, though short of expectations, remains at the top among developing and emerging countries, with GDP in 2023 estimated at some 435 billion USD.

PM Pham Minh Chinh receives Japan’s minister of economy

Prime Minister Pham Minh Chinh received Japanese Minister of Economy, Trade and Industry Nishimura Yasutoshi in Hanoi on November 3, affirming that Vietnam always views the Northeast Asian country as a trustworthy, leading important and long-term partner.

Vietnamese, Dutch PMs attend high-tech business, green economy forums

Prime Minister Pham Minh Chinh and his Dutch counterpart Mark Rutte attended the Vietnam-Netherlands High-tech Business Forum and the 2023 Green Economy Forum (GEF) in Hanoi on November 2.

Bac Giang’s economy "takes off"

BAC  GIANG - The internal and external transport system are gradually improved synchronously, opening the way to connect other fields, creating motivation for socio-economic development. Thanks to that, the northern province of Bac Giang has gained positive achievements, affirming its important position on the industrial map of the region and the whole country.

Belt & Road Forum: President Thuong suggests digital economy cooperation pillars

President Vo Van Thuong suggested three pillars for cooperation in digital economy while addressing the third Belt and Road Forum for International Cooperation (BRF) in Beijing, China, on October 18.

Source: VNA