Europe to channel investment into Vietnam

Investors are retrieving their capital from Greece, Italy and Spain and other European Union countries to be channelled into Vietnam this year, said Radio the Voice of Russia on March 14.
Investors are retrieving their capital from Greece, Italy and Spain andother European Union countries to be channelled into Vietnam this year,said Radio the Voice of Russia on March 14.

Experts saidVietnam’s socio-political stability is an important decisive factor forinvestors. The country’s poverty rate fell from 58 percent in the early1990s to 9.5 percent in 2010. In addition, Vietnam jumped 16 steps torank 61st in the 2010 Legatum Prosperity Index Table Ranking of theLondon-based Legatum Institute.

According to a Bloomberg Newsforecast, in future, Vietnam’s economic development prospects will beranked third in Asia after China and India.

In the meantime,Seekingalpha website said Vietnam has recently captured the attention ofinvestors because of its sizeable population of 90 million and itsrapidly growing middle class. Because Vietnam’s population is young –more than half the country is under 30 — this market-socialist nation islikely to benefit from a demographic dividend.

Going forward,Vietnam’s inexpensive labor force will continue to be attractive toforeign multinationals looking for an alternative to China’s risingcosts.

Another potentially profitable field for investment is realestate. According to the latest survey released by the Association ofForeign Investors in Real Estate (AFIRE), Vietnam ranked as the fourthmost attractive emerging market for real estate investment in 2011behind China, India and Brazil.-VNA

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