Illustrative image (Source: VNA) Bangkok (VNA) – Amid global concern overinflation and rising interest rates, Vietnam has emerged as a rare economicbright spot, boasting healthy GDP growth and an array of opportunities, accordingto a story published by Thailand-based Bangkok Post on September 19.
Vietnam, an emerging market with one of the highest growthrates in the world, has drawn significant investments from abroad, said the article, titled “Towering above the rest.”
The country's bourse often offers a high rate of return oninvestment, while the nation is not expected to suffer from the high inflationand rising interest rates that developed countries are plagued by, raising the possibilitythat these nations might enter a recession soon, it said.
In August, as bourses in developed markets declined,Vietnam's stock markets rebounded by more than 4% thanks to continued capitalinflows and economic stimulus measures launched by the government. Vietnam's monetarypolicy is relatively moderate, particularly when compared with developedcountries.
There are four key factors contributing to strong economicgrowth and attracting investors to Vietnam, making it one of the few countriesoffering high returns, the artcile cited investment firm One Asset Management(ONEAM) as saying.
To start with, Vietnam's economy has continued its sturdyexpansion despite the pandemic. Most recently, second-quarter GDP rose 7.7%year-on-year, accelerating from 5% in the previous quarter.
A recovery in consumption and the service sector followingthe reopening of the country at the end of last year contributed to suchgrowth. ONEAM analysts believe GDP growth for 2022 could soar to 6.1-6.5%.
Second, data from Vietnam's Planning and Investment Ministryindicates that foreign direct investment (FDI) strengthened the country'sreserves.
Third, land reform policies, such as land appraisal usingmarket prices and limits on agro-industrial areas not exceeding 20 hectares perfactory, have been applauded. The policies are seen as ensuring that landbenefits the vast majority of the population, not just the wealthy.
Finally, Vietnam's stock exchange revised its securitiestrading regulations by reducing the settlement date from two to 1.5 days, whichis expected to facilitate the launch of more sophisticated products in thefuture, according to ONEAM./.
Vietnam, an emerging market with one of the highest growthrates in the world, has drawn significant investments from abroad, said the article, titled “Towering above the rest.”
The country's bourse often offers a high rate of return oninvestment, while the nation is not expected to suffer from the high inflationand rising interest rates that developed countries are plagued by, raising the possibilitythat these nations might enter a recession soon, it said.
In August, as bourses in developed markets declined,Vietnam's stock markets rebounded by more than 4% thanks to continued capitalinflows and economic stimulus measures launched by the government. Vietnam's monetarypolicy is relatively moderate, particularly when compared with developedcountries.
There are four key factors contributing to strong economicgrowth and attracting investors to Vietnam, making it one of the few countriesoffering high returns, the artcile cited investment firm One Asset Management(ONEAM) as saying.
To start with, Vietnam's economy has continued its sturdyexpansion despite the pandemic. Most recently, second-quarter GDP rose 7.7%year-on-year, accelerating from 5% in the previous quarter.
A recovery in consumption and the service sector followingthe reopening of the country at the end of last year contributed to suchgrowth. ONEAM analysts believe GDP growth for 2022 could soar to 6.1-6.5%.
Second, data from Vietnam's Planning and Investment Ministryindicates that foreign direct investment (FDI) strengthened the country'sreserves.
Third, land reform policies, such as land appraisal usingmarket prices and limits on agro-industrial areas not exceeding 20 hectares perfactory, have been applauded. The policies are seen as ensuring that landbenefits the vast majority of the population, not just the wealthy.
Finally, Vietnam's stock exchange revised its securitiestrading regulations by reducing the settlement date from two to 1.5 days, whichis expected to facilitate the launch of more sophisticated products in thefuture, according to ONEAM./.
VNA
