A corner of Ho Chi Minh City (Photo: VNA) Examiningthe forces driving the country’s economic outlook and offers insights into itspromising future, the author wrote: “In modern times, the economy of Vietnam iscentrally directed through a series of five-year plans. These are a series ofeconomic development initiatives, broadly shaped by the central government,mapping strategies for economic development, growth targets and launchingreforms.”
Thearticle said recognising the need for technical innovation, the Vietnamese governmenthas made substantial investments in research and development, evident both inthe rapidly improving economy as well as its ascent on the Global InnovationIndex (GII), ranking 46th of 132 countries in 2023, according to the GII reportreleased by the World Intellectual Property Organisation (WIPO). The country alsomaintains its second position amongst lower middle-income countries.
Mostmajor manufacturers seek to diversify their production as well as takeadvantage of Vietnam’s still lower labour rates. Companies like Samsung, LG,Foxconn, Panasonic, Bosch, GE, Piaggio and Yamaha have established either localresearch and development facilities or a full manufacturing base, which underlinesVietnam’s potential for being an innovation as well as production hub.
Thearticle also pointed out that the economy has benefited from geographiclocation, with its long 3,300km eastern coastline offering 45 seaports ofvarious grades. It is also significantly enhanced by recent and looming improvementsto its infrastructure and by the major influx of foreign direct investment(FDI). The country has been successful in attracting significant investments,making it one of the top countries globally in this regard, said theauthor. In 2023, the economy of Vietnamattracted 36.6 billion USD, an annual increase of 32%. There were 111 countriesand territories contributed to such investment, with the bulk coming from Asianones.
“Thestrong recent FDI inflows speak of improved confidence in the future prospectsfor the economy of Vietnam.”
Accordingto the article, Vietnam’s largest trading partner is China, with the US beingits largest export market. This is likely to grow further with the signing lastyear of the Comprehensive Strategic Partnership with Washington, in preparationfor the coming US recognition of Vietnam as a market economy.
Thenation is looking to take a leading role in the green economy andsustainability, while dramatically improving its digital infrastructure. Vietnamranks 86 out of 193 countries and territories in terms of digital governmentaccording to the UN, with the e-government development index higher than theglobal average.
Inconclusion, the author wrote: “With strong GDP growth, a solid increase in FDIand significant improvements in infrastructure, Vietnam remains one of theglobes rising economies. With the labour market rebounding and a surging middleclass, there is a noticeable uptick in domestic consumption. The double impactof export-driven growth and a thriving domestic market position the economy ofVietnam for sustained and dynamic growth.”/.
VNA
