Vietnam’s economic moment has arrived: Financial Times

After decades of showing promise, Vietnam’s economic moment may have finally arrived. (Photo: VNA)

London (VNA) – The UK-based FinancialTimes has posted an article in which it assessed that after decades ofshowing promise, Vietnam’s economic moment may have finally arrived, and thecountry must capitalise on the manufacturing boom for its long-term development.

According to the article on July 9, the Southeast Asian nation hasbecome a major beneficiary of manufacturers’ efforts to “de-risk” theirexposure to China as geopolitical tensions accelerate.

Last year, foreign direct investment (FDI) poured into thecountry soared to a decade high to over 20 billion USD. Big names includingDell, Google, Microsoft and Apple have all shifted parts of their supply chainto the country in recent years, and are looking to do more in the coming time.

Illustrative image (Photo: VNA)

Rapid export-led growth has pulled millions out of povertyin recent decades, but Vietnam’s economy is now at a crossroads. In thenear-term, to continue riding the wave of investor attention, it needs tobolster its business environment. In the long run, to meet the government’sambitious goal of becoming a high-income economy by 2045, it must also leveragethe manufacturing growth boon to diversify its economy, wrote the article.

It added that over the next decade, Vietnam must raise itsproductive capacity to meet the growing demands of manufacturers investmentplans, and need to reinvest its current growth dividend to support thedevelopment of more productive, knowledge-rich sectors, to meet its 2045 goal.Backbone services like finance, logistics, and legal services create high-skilledjobs and add value to existing industries.

The business excitement around Vietnam is justified. Butthere is much work to be done to convert today’s “de-risking” trend intolong-term prosperity, the Financial Times suggested./.

VNA