According to asianinsiders.com, the Vietnamese economy is being driven by an increasingly improved infrastructure. (Photo: Hồng Đạt/TTXVN)
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Asianinsiders.com (Hong Kong) recently published an analysis of the driving forces behind Vietnam’s economic prospects and suggests that Vietnam’s economy is undergoing a strong transformation with solid growth.
According to the article, Vietnam’s economy is strategically planned through a series of 5-year plans, outlining economic development strategies, growth objectives, and reform implementation.
Recognizing the need for technological innovation in the economy, the Vietnamese government has heavily invested in research and development (R&D) activities.
Evidence of this is the rapid growth of the economy and the global innovation index (GII) also increased, ranking 46th out of 132 countries worldwide in 2023 (according to the GII report by the World Intellectual Property Organization – WIPO).
Vietnam ranks second among low-middle-income countries.
Enhancing innovation and technological capabilities is the key to attracting investment, especially as most large manufacturing corporations are seeking to diversify production and take advantage of Vietnam’s still low labor costs.
Companies such as Samsung, LG, Foxconn, Panasonic, Bosch, GE, Piaggio, and Yamaha have established R&D facilities or complete production plants in Vietnam. This reflects Vietnam’s potential as a manufacturing and innovation center.
Vietnam also benefits from its geographical location. Vietnam’s economy is also being driven by an increasingly improved infrastructure. The economy is also driven by strong foreign direct investment (FDI) inflows.
Vietnam has been successful in attracting investment and has become one of the leading countries globally in terms of FDI attraction. In 2023, Vietnam attracted $36.6 billion, an increase of 32% compared to 2022.
Furthermore, this figure includes approximately $20 billion in new registered capital, a 62% increase compared to 2022. In 2023, Vietnam recorded 3,188 new FDI projects.
The investment projects come from 111 countries and territories, primarily Asian economies, led by Singapore, followed by Japan and Hong Kong (China).
The strong FDI inflows in recent times demonstrate strong confidence in Vietnam’s future prospects.
China is Vietnam’s largest trading partner while the United States is the largest export market. Vietnam’s economy has further growth potential after upgrading its relationship with the United States to a Comprehensive Strategic Partner in 2023, paving the way for the United States to recognize Vietnam’s market economy.
Although the United States lags behind most countries in recognizing Vietnam’s market regime, this will help improve trade structure and tariffs, thereby promoting relations between the United States and Vietnam.
Vietnam is also striving to lead in green and sustainable economic development and upgrading digital infrastructure. According to the United Nations, Vietnam ranks 86th out of 193 countries and territories in terms of E-Government Development Index, higher than the global average.
With high GDP growth, strong FDI inflows, and improved infrastructure, Vietnam remains one of the fastest-growing economies globally. With the recovery of the labor market and an expanding middle class, domestic consumption is recording strong growth.
The dual impact of export-driven growth and a strong domestic market has helped Vietnam’s economy achieve sustainable and dynamic growth./.
Thu Hằng
