Illustrative image (Photo: VNA) Hanoi (VNA) - The macroeconomic outlookof Vietnam is bright as the country has witnessed strong domestic consumption,received foreign direct investments and maintained a surplus in trade balancewith other countries, wrote an article recently published on the US’s seekingalpha.com.
Vietnam'sreal GDP growth is forecasted to exceed 8% in 2022.
In a timewhen other major world economies are curtailing fiscal and monetary policysupport in an effort to contain inflation, Vietnam is in a position to supportits growth. In January 2022, Vietnam passed a fiscal stimulus package of 15.4billion USD at almost 4% of its GDP to support its 8 percent growth target forthe year. The stimulus is generally viewed as a positive for thecountry's GDP growth trajectory for the year, it said.
Vietnam'scurrency and interest rates also appear relatively stable compared to othercountries. A sharp recovery in personal consumption along with strong exportgrowth contributed to the country's impressive Q3 GDP growth of 13.67%. Vietnam'sstrong macroeconomic position is expected to lift its population out of povertyas more than half of the Vietnamese population is projected to join the globalmiddle class by 2035.
“Thecountry has been able to remain attractive to foreign investors and receivedforeign direct investment (FDI) net inflows totaling 15.3 billion USD in 2021,or 4.2% of GDP, up from 3.2% of GDP in 2013. We believe the strong FDI furthersolidifies the country's macro outlook”, the article said.
According to the author, Vietnam's regulators are vying for an upgrade toemerging markets status by global index providers. The State SecuritiesCommission of Vietnam is working with global agencies such as the World Bankand FTSE as well as Vietnam's ministries, associations and market members toaddress concerns on foreign ownership limits.
Thecountry's regulators are willing to make markets more accessible to foreigninvestors and boost the infrastructure support needed to run a healthy andfunctioning market. An upgrade to emerging markets status could potentiallyattract foreign active and passive asset inflows into the local Vietnamesemarket, it concluded./.
