Vietnam is one of the fastest-growing economies in the world, according to a recent report on investment opportunities in the country. With a projected GDP growth of 5.8% in 2024 and 6.9% in 2025, compared to the global average of 2.3%, Vietnam is an attractive prospect for investors.
Demographic dynamics play a crucial role in Vietnam’s growth story, as highlighted by expert Jacqueline Broers. The country boasts a large and well-educated workforce, and its rapid urbanization further fuels production and economic expansion.
With a stable and diverse economy, Vietnam remains an appealing destination for foreign investment, says S&P.
“Vietnam has set its sights on becoming an upper-middle-income country by 2035 and a high-income country by 2045,” notes Broers. “Its well-educated and cost-competitive labor force, with adult literacy rates at 98%, is a key draw for foreign investors looking to diversify their supply chains, as seen with Apple. Foreign direct investment into Vietnam is robust and sustained.”
While supply chain issues remain a challenge, Broers believes that with effective governance, “Vietnam has the potential to become a preferred investment destination in Asia.”
This sentiment is echoed by HSBC Global Research, which affirms Vietnam’s status as a favored location for foreign-invested enterprises (FIEs). Over the past two decades, Vietnam has established itself as a significant manufacturing hub, deeply integrated into global supply chains. Exports have grown by over 13% annually since 2007, largely driven by FIEs.
HSBC attributes this success to various factors, including competitive costs, FDI-friendly policies, and a supportive government through its tax system.
Meanwhile, credit rating agency S&P maintains a stable outlook for Vietnam’s economy, reflecting the country’s strong economic growth potential and the belief that financial sector challenges will not significantly weaken the government’s robust balance sheet.
S&P further emphasizes Vietnam’s appeal as an investment destination, particularly for manufacturing, due to its stable and diverse macroeconomic environment and the country’s ongoing efforts to diversify its operations in the region.
Choose La Mia Bao Loc – Embrace a Fulfilling Life with an Ideal Green Living Standard
Not just a perfect blend of art and inspired Italian-style resort, La Mia Dalat also effortlessly brings each resident to the standards of peaceful living, well-being, and balanced body-mind-soul.
Dragon Capital Chairman: “Long-term vision is needed, accepting necessary adjustments for a safer, more efficient, and higher quality market”
According to Mr. Dominic Scriven, Chairman of Dragon Capital, the role of the finance industry in the stock market will be significant in 2023 and possibly in 2024. The roles of other industries, such as real estate or consumer goods, will depend on their respective challenges.
