Hanoi (VNA) - ETF Trends, a leading source in Exchange Traded Funds (ETF) news of the US, and Sputnik news agency of Russia have run articles highlighting Vietnam’s economic recovery, saying the country is an attractive destination for foreign investors.
Processing frozen tra fish (Photo: VNA) According to Sputnik, Vietnam is expected to become a new production hub of the world, as “Made in Vietnam” products are winning larger shares in the international market.
The news agency noted that last year, Vietnam enjoyed good results in foreign direct investment (FDI) attraction, and drew hundreds of millions of USD right in the beginning of 2022, which showed the strong confidence of investors, including many giant firms such as Foxconn, Pegatron, Wistron, LEGO and Nike, in the country's economic prospects.
Sputnik cited statistics from the General Department of Vietnam Customs showing that Vietnam earned a record amount of 57.54 billion USD from exporting telephones and accessories in 2021, a rise of 12.4 percent year on year, and a 25-fold increase from the 2.3 billion USD recorded in 2010.
The result was firstly attributable to the Republic of Korea’s Samsung Group, whose revenue accounted for nearly 20 percent of Vietnam’s GDP last year. As of the end of 2021, Samsung had invested 18 billion USD in Vietnam. Currently, more than 50 percent of Samsung’s cell phones are produced in Vietnam. Smart mobile devices manufactured in Vietnam are being exported to 128 countries and territories in the world.
Samsung Vietnam said that the group faced a number of difficulties in the past year due to the COVID-19 pandemic. However, thanks to the comprehensive support of the Vietnamese government and authorities of localities where Samsung’s factories are based, these difficulties were promptly removed, ensuring production activities were not disrupted.
In particular, Samsung is committed to not changing its business strategy in Vietnam.
In addition to Samsung, Nokia or Intel, major groups like Foxconn, Pegatron, Wistron and LEGO have also announced investments in a series of projects in Vietnam.
According to Sputnik, experts predicted that Vietnam will become the largest production hub of Nike. The CNBC quoted the world leading sportwear producer's financial report as saying that in 2021, Vietnam produced 51 percent of its global production.
The situation is similar for Adidas, Nike’s rival, with 40 percent of its footwear being made in Vietnam.
Experts held that the number of orders for Vietnam is rising thanks to the strong workforce and low labour cost, along with smooth investment environment, stable political situation, good infrastructure, attractive incentives for investors, and the country’s success in pandemic control, Sputnik highlighted.
Workers at Vietnam Bright International Company Limited in Thuan Thanh district, Bac Ninh province (Photo: VNA) Meanwhile, ETF Trends said that emerging markets like Vietnam can provide potential growth opportunities for investors who do their due diligence.
The article said investing in emerging markets can come with its own nuances, particularly because each country’s performance can vary with respect to their economic stability.
The COVID-19 pandemic certainly roiled a lot of emerging market opportunities in 2020, but certain countries that were able to respond swiftly muted its economic effects.
Vietnam, for example, was able to rebound from the pandemic due to a quick, pointed response by its government, the article noted.
Fitch Ratings forecasts growth ahead for Vietnam in 2022. Economic effects related to the pandemic don’t appear to be as severe, thanks to the government’s move to increase vaccinations in the country.
“We expect growth to accelerate to 7.9 percent in 2022 and 6.5 percent in 2023 as the recovery becomes established,” the article cited Fitch Ratings as saying.
“Vietnam has also had less economic scarring than many emerging markets, as it is one of the few countries that did not experience an annual contraction in GDP amid the pandemic shock.”/.
