International media highlights Vietnam’s economic success in 2019

International media outlets have highlighted Vietnam’s thriving economy which is among the fastest-growing in Southeast Asia in 2019 amid the global economic slowdown.

International media highlights Vietnam’s economic success in 2019

An appealing investment destination

Vietnam is one of the best growing economies in the region which has become an attractive destination for investment from all over theglobe, said the Bangkok Post in a news story last week.


“Thegovernment of Vietnam has put a lot of effort into making the country a goodhost for incoming investment and companies,” the Thai newspaper said. “Several companies have movedtheir units across the border to Vietnam from China. They include techcompanies like Nokia, Samsung and Olympus, as well as shoe manufacturers suchas Nike and Adidas.”

It addedthat the ease of doing business index for Vietnam is at 69th in 2019. “Vietnam has maintained aGDP growth rate of more than 6 percent since 2000, whereas other neighbouring Southeast Asiancountries have faltered badly due to the trade wars,” it said. 

A key factor in Vietnam that attracts industries isthe lucrative corporate tax rate for large firms that are looking to relocate. “A few large firms in Vietnamhave managed to get tax rates as low as zero for the first five years, 5 percent for the next decade and10 percent for the subsequent next two,” itexplained.

In a recentseminar in the United States, Deborah Elms, executive director of the Asian TradeCentre in Singapore, said Vietnam was doing well in improving its internal capacity to cope with effects of theUS-China trade war and lure more foreign investment.

Vietnam hasso far signed 12 free trade agreements with foreign partners around the globe,including the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).In June, Vietnam inked a FTA and an Investment Protection Agreement with theEuropean Union (EU).

According toReuters, foreign direct investment (FDI) is crucial for Vietnam to maintaineconomic growth since the FDI firms account for about 70 percent of thecountry’s total exports.

Russia’sRegnum news agency also hailed Vietnam for jumping 15 places on the ranking of besteconomies to invest in, surging past other regional peers like Malaysia,Singapore and Indonesia.

 

Jumps in competitive rankings


The World Economic Forum (WEF)’s 2019 Global CompetitivenessIndex (GCI) report revealed that Vietnam rose 10 spots from last year to land at 67th out of 141 economies,making it the most improved country this year.

Against the backdrop ofweakening global economy, Vietnam standouts the most with a robust and stableeconomic growth, said Professor Vladimir Mazyrin, Director of the Centre for Vietnameseand ASEAN studies at the Institute for Far Eastern Studies of the RussianAcademy of Science.

The key to such an impressivegrowth remains in the country’s ability to provide a favourable businessclimate and corporate supports, particularly for small and medium enterprises(SMEs), he said.

The Vietnamese government hastaken drastic moves to boost the economy, he continued, highlighting the signing of a number ofnew-generation FTAs; streamlining of business conditions andverification procedures; launch of e-government and thedigital economy; and encouragement of startup businesses.

Vietnam jumped three ranks onthe 2019 Global Innovation Index (GII) to place 42nd out of 129 economies. Itis the highest ranking Vietnam has ever achieved.

Sacha Wunsch Vincent, head of the WIPO’s Composite Indicator ResearchSection, Economics and Statistics Division and Co-Editor of the GII, hailed Vietnam as a model country among those surveyed by theWIPO over the past three years. 

The country also climbed inthe ranking of best countries in which to invest this year issued by the USNews and World Report, up from 23rd last year to eighthout of 29 economies. According to the report, “Doi Moi” (renewal)economic policy reforms beginning in 1986 have helped Vietnam transition to becoming a more modern, competitivenation.

It was voted as thesecond-best destination for expats to live and work in 2019 in an Expat Insidersurvey published by InterNations. The country moved up 12 steps in just oneyear from the 14th out of the 68 destinations last year, said InterNations, theworld’s largest expat community with 3.6 million members.

Promising economic outlook

Economists have lifted growth projections for Vietnamafter the latest data showed the economy surged more than 7 percent in the third quarter,according to Bloomberg.

Citigroup Inc. revised its full-year forecast of Vietnam’sGDP to 6.9 percent from 6.7 percent, on the basis of another solidperformance in the fourth quarter.

Analysts at Maybank Kim Eng Research Ltd. also upgraded their forecast of Vietnam’seconomic expansion to 7 percent fromtheir previous prediction of 6.8 percent.

According to two economists of Maybank – Linda Liu and ChuaHak Bin, rising foreign direct investment and “buoyant domestic demand, assuggested by the recent robust retail sales growth”, will keep the momentumgoing through the year-end and in early 2020.

Currently, manyinternational financial institutions are issuing very positive assessmentsabout the prospects of Vietnam's economy in the coming time.

HSBC predicted thatinflation in Vietnam will be kept below 2.7 percent,while GDP growth is expected to ease to 6.7 percent inthe whole year.

Edward Lee, chiefeconomist for ASEAN and South Asia at Standard Chartered Bank Global Research,said he believes that Vietnam will be the fastest growing economy in ASEAN thisyear with a projected growth reaching 6.9 percent, and this is expected tocontinue until 2021.

Vietnam’seconomy has performed well in 2019, with GDP expanding by an estimated 6.8 percent, whilepublic debt reduced by nearly 8 percentage point of GDP since 2016, and a tradebalance surplus for fourth year in a row, the World Bank (WB) said in a report released earlerthis month. It described the results as remarkable amid global downturn.

The WB emphasised the resilience of the Vietnameseeconomy, saying GDP growthhas continued to be driven by a strong external sector with exports expandingby about 8 percent this year,nearly four times faster than the world average.
 
The country has also remained an attractive destination for foreign investors,with FDI inflows averaging 3billion USD per month. In addition, private consumption has emerged as animportant contributor to GDP growth as the result of an expanding middle-incomeclass and rising wages. Private firms also increased investment by 17 percentduring the same period./.VNA

 
 

Other News

.
Vietnam vows to develop eco-friendly chemical industry
Vietnam vows to develop eco-friendly chemical industry
BUSINESSicon  10/10/2020 

Nguyen Van Thanh, director general of the Vietnam Chemical Agency, speaks about some of the strengths and weaknesses in the 2007 Law on Chemicals.

Banks put pedal to the metal in digital transformation
Banks put pedal to the metal in digital transformation
BUSINESSicon  10/10/2020 

The banking industry has been recently abuzz with digital transformation as lenders embark on their journey to become more tech-enabled to keep pace with disruptive technologies.

12 loss-making mega-projects proceed slowly
12 loss-making mega-projects proceed slowly
BUSINESSicon  10/10/2020 

The assets of the 12 loss-making mega-projects under the Ministry of Industry and Trade (MOIT) total VND59.1 trillion, while total accounts payable is VND63.3 trillion.

Equitisation doesn't necessarily mean a better future for SOEs
Equitisation doesn't necessarily mean a better future for SOEs
BUSINESSicon  10/10/2020 

Equitisation should be a magic wand to improve the performance of a State-owned enterprise (SOE), but in some cases, it is not.

Banks push bancassurance amid low credit growth
Banks push bancassurance amid low credit growth
BUSINESSicon  09/10/2020 

Banks are pushing the sale of life insurance products (bancassurance) in the context of low credit growth since the beginning of this year due to the impacts of the COVID-19 pandemic.

Sound direction for Vietnam’s chances of economic revival
Sound direction for Vietnam’s chances of economic revival
BUSINESSicon  09/10/2020 

Despite heavy aftermaths caused by the global health crisis, the Vietnamese economy remains in positive growth in the first nine months of the year on the back of the government’s sound responses to curb the pandemic return.

Reforms to cut unwanted administrative processes
Reforms to cut unwanted administrative processes
BUSINESSicon  09/10/2020 

In a bid to boost institutional reforms towards a modern market economy, further abolishing and reducing business regulations to create a bigger space for the private sector to develop will serve as a new driving force 

Rising handling charges neccessary to advance
Rising handling charges neccessary to advance
BUSINESSicon  09/10/2020 

International shipping lines are expected to face an increase of 12 per cent in domestic container handling service charges at Vietnamese seaports from early 2022, triggering concerns over a possible charge burden on local shippers.

Fish sauce producers in a tight spot
Fish sauce producers in a tight spot
BUSINESSicon  09/10/2020 

Traditional fish sauce is one of the most typical components in Vietnamese cuisine and while its nutritional value has been analysed thoroughly, getting EU customers to consume it more regularly remains a challenge.

Tra fish famers, exports hit hard by Covid-19 pandemic
Tra fish famers, exports hit hard by Covid-19 pandemic
BUSINESSicon  09/10/2020 

Tra (pangasius) fish prices have dropped to their lowest levels in 11 years since exports have been hit by Covid-19, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

September surprise: fruit prices soar to record high
September surprise: fruit prices soar to record high
BUSINESSicon  09/10/2020 

Passion fruit, pomelo, dragon fruit and fresh coconut have been exported to Europe in large quantities under the EVFTA, which took effect this year.

Mystery businessmen pours VND150 billion into ITA, Dang Thi Hoang Yen makes surprise move
Mystery businessmen pours VND150 billion into ITA, Dang Thi Hoang Yen makes surprise move
BUSINESSicon  09/10/2020 

The ITA shares of the Tan Tao Group unexpectedly witnessed an impressive trading session with a record high trading volume.

VN rice exporters gear up to penetrate EU arena
VN rice exporters gear up to penetrate EU arena
BUSINESSicon  08/10/2020 

Vietnamese companies have been stepping up investment to boost rice exports to Europe – however, it remains a challenging task penetrate the market efficiently.

VRDF highlights advantages of value chain development
VRDF highlights advantages of value chain development
BUSINESSicon  08/10/2020 

Amid the heavy impact the pandemic has had so far on Vietnam’s economy, possible solutions to overcome the crisis and come out even stronger have been under discussion at this year’s Vietnam Reform and Development Forum.

Plastic stocks surge in two months, boosted by low production cost
Plastic stocks surge in two months, boosted by low production cost
BUSINESSicon  08/10/2020 

Listed plastic companies have seen their market values expand 15-50 percent in the last two months on low oil prices and increased consumption.

Husbandry to undergo modernisation
Husbandry to undergo modernisation
BUSINESSicon  08/10/2020 

New technologies from the fourth Industrial Revolution will be applied in livestock breeding in order to produce safe and high-quality output while improving the husbandry sector’s competitive edge,

Businessman leaves after 16 years of building fortune
Businessman leaves after 16 years of building fortune
BUSINESSicon  08/10/2020 

The long battle inside the biggest construction company in Vietnam has come to an end with the departure of a successful businessman.

VN issues action plan to implement National Energy Development Strategy
VN issues action plan to implement National Energy Development Strategy
BUSINESSicon  08/10/2020 

Vietnam aims to raise its renewable energy sources to 15-20 per cent of the total energy supply by 2030 and 25-30 cent by 2045.

Trade surplus reaches $7.2 billion
Trade surplus reaches $7.2 billion
BUSINESSicon  07/10/2020 

Vietnam’s total import-export turnover for agricultural, forestry and fishery products in January-September was estimated at nearly US$52.8 billion, making for a trade surplus of $7.2 billion,

Additional economic relief packages in the pipeline
Additional economic relief packages in the pipeline
FEATUREicon  07/10/2020 

The Government is drafting second economic relief packages aimed at assisting the national economy, especially businesses, in the face of the ongoing COVID-19 crisis.

 
 
 
Leave your comment on an article

OR QUICK LOGIN