Workers put final touches on garment for export to the EU at a factory in Thai Nguyen province (Photo: VNA) The writing considered Vietnam’s free trade agreements (FTAs) as a pull factor that investors can bank on,noting that the country has used its participation in FTAs as an instrument toensure increased economic power and financial security. This will ensure thatVietnam’s economic development will continue to shift away from exportinglow-tech manufacturing products and primary goods to more complex hi-tech goodslike electronics, machinery,vehicles, and medical devices.The implementation of the EU - Vietnam Free Trade Agreement (EVFTA) last year is an example of this.
Besides, the Regional Comprehensive Economic Partnership (RCEP), which will officially come into force onJanuary 1, 2022, can help local firms increase exports and attract high-qualitygoods for its consumers. In addition, the country is set to benefit from thedemand for its exports like agriculture and fisheries products.
Mergersand acquisitions (M&A) are likely tocontinue to play a key role in Vietnam’s economy in 2022. While in 2020,M&A activities were disrupted due to the pandemic, in the first nine monthsof 2021, M&A deals with total disclosed value have already totalled 3billion USD.
As Vietnam hopes to recover its economy, further robust M&A activitycan be expected in 2022, especially when the government has also eased somerequirements in the investment and enterprise laws to facilitate M&A deals,according to the article.
Due to the pandemic, the government unveiled several support packagesfor businesses and individuals to help spur the economy, the writing said,suggesting businesses should prepare for 2022, using these government measuresto improve cash flow.
In addition, the easing of entry procedures and work permit requirementsshould help businesses and employees enter Vietnam for job opportunities.
Regarding tourism - a major contributor to the economy, from 2022, thegovernment plans to allow international arrivals that are fully vaccinated toself-quarantine at home or their places of accommodation as long as they testnegative. The Ministry of Culture, Sports, and Tourism has proposed that thePrime Minister consider restoring visa exemption for tourists who stay inVietnam for less than 15 days. In addition, nine international flight routes havebeen given the green light to resume commercial flights.
In its conclusion, the article said 2021 brought significant challengesfor many businesses in Vietnam who had to deal with local market developmentsalong with concerns plaguing global supply chains exacerbated by the pandemic.Several issues that the country faced in 2021 are likely to continue into 2022.
Nevertheless, it added, a more targeted and focused development in keyareas of the economy will present more opportunities for growth, particularly,in areas that help prop up Vietnam’s bottom line of economic stability andpeople’s livelihoods.
While Vietnam has suffered, its economy is on course to record positivegrowth in 2022. For the next year, it remains a strong candidate for investmentfrom ASEAN and beyond. Given its investor-friendly policies, relative economicand political stability, cost efficiency, and consumer demand prospects, thecountry is likely to continue gaining from supply chains restructuring in Asiain addition to attracting a new range of investors in terms of geography andsectors, according to the writing./.
VNA
