Vietnam has been named one of the rising stars of global trade with the sixth position among the top 20 markets with the greatest potential for future trade growth, according to a recent report by Standard Chartered.
|Tra fish is processed for export at the factory of the Go Dang JSC in the My Tho Industrial Park of Tien Giang province|
With this ranking, the country is also the best performer among the ASEAN nations,the Trade20 index, which examined 66 economies, shows.
Standard Chartered said Vietnam shows the strongest progress in trade growthpotential of all the ASEAN markets in the report, driven by improvements to itstrade readiness and economic dynamism.
The market’s improving strength in trade readiness is attributed toinfrastructure enhancements and improvements to its ease of doing businessscore, while its economic dynamism is driven by healthy growth, particularly interms of export volumes.
According to the report, economic and political reforms over recent decadeshave spurred Vietnam’s economic growth, bolstered by strong domestic demand andmanufacturing-led export success. The market has solid foundations for growth:it is politically stable, well-located for global supply chains and has arelatively young population.
The government has built on these foundations, focusing on business reforms andderegulation, investing in human capital and infrastructure, and embracingtrade liberalisation, Standard Chartered noted.
It said Vietnam’s growth is likely to continue to be driven by FDI-ledmanufacturing and export growth. Rising tourism inflows and stronger domesticdemand, supported by higher wages, are also likely to sustain strong growth.
The banking group added amidst the ongoing US-China trade dispute, the countrymay also be well-placed to benefit if it can absorb demand diverted to otherlocations as suppliers relocate from China. It forecast FDI inflows will remainstrong in 2019 and 2020 to approximate 15 billion USD./.VNA
Vietnam must identify, implement and build management models for sharing economy applications in the country’s major sectors such as banking and transport to ensure a fair business playground and protect all involved parties.
Vietnam’s GDP rose by 7.31% in the third quarter of this year, contributing to raising the nine-month GDP to the highest level over the past nine years, signaling that Vietnam's economy can make a breakthrough.