Business

Indian expert hails Vietnam’seconomic growth

The economic prospect of Vietnam is bright and the country’s economic growth story is like a “miracle”, S D Pradhan, deputy national security adviser of India, commented in a recent article run by Times of India newspaper.
Indian expert hails Vietnam’seconomic growth ảnh 1Vietnam has controlled COVID-19 and resumed economic activities (Photo: VNA)

 New Delhi (VNA) – The economic prospect of Vietnamis bright and the country’s economic growthstory is like a “miracle”, S D Pradhan, deputy national security adviser ofIndia, commented in a recent article run by Times of India newspaper.

In the article, the authorheld that despite the COVID-19 pandemic, Vietnam is forecast to be one of thefastest-growing economies in South East Asia. He cited the ADB’s AsianDevelopment Outlook 2020 report published on April 3, 2020, that Vietnam’seconomic growth will decline sharply to 4.8 percent in 2020 but bounce back upto 6.8 percent in 2021, provided the pandemic is contained.

A report by StandardChartered forecasts that Vietnam’s GDP is on course for 7 percent growththrough the 2020s – and will surpass the 10,000 USD per capita GDP mark in2030. This is a remarkable growth story, he commented.

Vietnamhas emerged as one of the favourite destinations for FDIs in Southeast Asiawith FDI inward flow having increased year-on-year since 2011, reaching 19.5billion USD in 2018, up from 17.1 billionUSD in 2017.

Inaddition, despite an average year-on-year minimum wage growth rate of 8.8percent between 2015 and 2019, the manufacturing costs in Vietnam remain highlycompetitive.

Theauthor asserted that socio-political stability combined with policymakers whocontinue to seek removal of restrictions on businesses by initiating reformsenabling foreign companies to open up businesses in the country have helpedVietnam attract significant business from abroad. It has increasedinfrastructure investment, promoted FDIs, increased education and R&Dbudgets, enhanced trade integration, and improved institutions and policies.

Henoted that Vietnam took necessary measures to deal with the business crisiscaused by the COVID-19 pandemic, which adversely effected business in thecountry.

However, S D Pradhan heldthat there would be a number of challenges for Vietnam to deal with, addingurgentefforts would be needed to develop the country as the manufacturing hub./.

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#COVID-19 pandemic #Vietnam’s economic growth #Vietnam’s GDP #S D Pradhan #Vietnam's socio-political stability #Vietnam #Vietnam news #Vietnam News Agency
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