Examining the forces driving the country’s economic outlook and offers insights into its promising future, the author wrote: “In modern times, the economy of Vietnam is centrally directed through a series of five-year plans. 

A corner of Ho Chi Minh City.

These are a series of economic development initiatives, broadly shaped by the central government, mapping strategies for economic development, growth targets and launching reforms.”

The article said recognising the need for technical innovation, the Vietnamese government has made substantial investments in research and development, evident both in the rapidly improving economy as well as its ascent on the Global Innovation Index (GII), ranking 46th of 132 countries in 2023, according to the GII report released by the World Intellectual Property Organisation (WIPO). The country also maintains its second position amongst lower middle-income countries.

Most major manufacturers seek to diversify their production as well as take advantage of Vietnam’s still lower labour rates. Companies like Samsung, LG, Foxconn, Panasonic, Bosch, GE, Piaggio and Yamaha have established either local research and development facilities or a full manufacturing base, which underlines Vietnam’s potential for being an innovation as well as production hub.

The article also pointed out that the economy has benefited from geographic location, with its long 3,300km eastern coastline offering 45 seaports of various grades. It is also significantly enhanced by recent and looming improvements to its infrastructure and by the major influx of foreign direct investment (FDI). 

The country has been successful in attracting significant investments, making it one of the top countries globally in this regard, said the author. In 2023, the economy of Vietnam attracted 36.6 billion USD, an annual increase of 32%. There were 111 countries and territories contributed to such investment, with the bulk coming from Asian ones.

“The strong recent FDI inflows speak of improved confidence in the future prospects for the economy of Vietnam.”

According to the article, Vietnam’s largest trading partner is China, with the US being its largest export market. This is likely to grow further with the signing last year of the Comprehensive Strategic Partnership with Washington, in preparation for the coming US recognition of Vietnam as a market economy.

The nation is looking to take a leading role in the green economy and sustainability, while dramatically improving its digital infrastructure. Vietnam ranks 86 out of 193 countries and territories in terms of digital government according to the UN, with the e-government development index higher than the global average.

In conclusion, the author wrote: “With strong GDP growth, a solid increase in FDI and significant improvements in infrastructure, Vietnam remains one of the globes rising economies. With the labour market rebounding and a surging middle class, there is a noticeable uptick in domestic consumption. The double impact of export-driven growth and a thriving domestic market position the economy of Vietnam for sustained and dynamic growth”.

PM orders quantitative, qualitative development of collective economy

Prime Minister Pham Minh Chinh requested developing the collective economy in terms of both quantity and quality while chairing a forum on the cooperative economy and cooperatives in Hanoi on February 2.

Vietnam’s economy remains a bright spot in 2023

The trend towards economic recovery continued in Vietnam, with each successive month revealing further improvements over the previous month and each subsequent quarter surpassing the prior quarter. The country essentially achieved its overall goals and posted significant results in various sectors. It remained a bright spot amid a rather challenging global economic landscape.

China supports Vietnam’s development of green economy, people-to-people diplomacy: Ambassador

China supports Vietnam's efforts toward industrialisation and modernisation, particularly in key areas such as green economy, digital economy, and energy transition, Chinese Ambassador to Vietnam Xiong Bo has affirmed.

Opportunity for breakthrough in Vietnamese economy

Forecasts from international organisations indicate the possibility that global economic recovery will remain dim in 2024. In Vietnam, opportunities and challenges are intertwined, so the domestic economy is predicted to still face many challenges.

Vietnamese economy offers unique opportunity for investors

As Vietnam's economy is rapidly expanding, outpacing their ASEAN peers, it presents a unique opportunity for investors, said an article published on the Israeli-based financial market news site seekingalpha.com.

Source: NDO