Vietnam is one of the world’s fastest-growing economies, according to a recent report on investment opportunities in the country. Expert Jacqueline Broers forecasts Vietnam’s GDP to reach 5.8% in 2024 and 6.9% in 2025, significantly higher than the global average of 2.3%.
One of the key drivers of Vietnam’s impressive growth, according to Broers, is its favorable demographic structure. She attributes Vietnam’s success to its abundant and well-educated workforce. Rapid urbanization further fuels production and economic growth.
S&P affirms that Vietnam, with its stable and diverse economy, remains an attractive destination for foreign investment…
“Vietnam has set its sights on becoming an upper-middle-income country by 2035 and a high-income country by 2045,” Broers notes. She highlights the benefits of Vietnam’s well-educated and cost-competitive workforce, with adult literacy rates as high as 98%. This, among other factors, makes Vietnam increasingly appealing to foreign investors seeking to diversify their supply chains, as evidenced by Apple’s presence in the country. Foreign direct investment inflows into Vietnam are robust and consistent.
While supply chain issues remain a challenge, Broers believes that with proper navigation by the Vietnamese government, the country has the potential to become a favored investment destination in Asia.
HSBC Global Research echoes these sentiments in their recent report, stating that Vietnam continues to be a preferred location for foreign-invested enterprises (FIEs). Over the past two decades, Vietnam has transformed into 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 the increased interest from multinational corporations to several factors, including competitive costs, FDI-friendly policies, and proactive government support through tax incentives.
Meanwhile, credit rating agency S&P maintains a stable outlook for Vietnam’s economy, reflecting expectations of strong economic growth and confidence that financial sector challenges will not significantly weaken the government’s solid balance sheet.
S&P affirms that Vietnam, with its stable and diverse economy, remains an attractive destination for foreign investment, particularly in the manufacturing sector, as companies seek to diversify their regional operations.
