Foreign investors maintain optimistic outlook for Vietnam’s growth

Foreign investors maintain an optimistic outlook for Vietnam’s economic growth next year though the country suffered a challenging 2021 as it was hit hard by the pandemic, according to an article posted on the website Vietnam Briefing of Dezan Shira & Associates.

Foreign investors maintain optimistic outlook for Vietnam’s growth hinh anh 1

Workers put final touches on garment for export to the EU at a factory in Thai Nguyen province (Photo: VNA)

Foreign investors maintain an optimistic outlook for Vietnam’s economic growth next year though the country suffered a challenging 2021 as it was hit hard by the pandemic, according to an article posted on the website Vietnam Briefing of Dezan Shira & Associates.

The writing considered Vietnam’s free trade agreements (FTAs) as a pull factor that investors can bank on, noting that the country has used its participation in FTAs as an instrument to ensure increased economic power and financial security. This will ensure that Vietnam’s economic development will continue to shift away from exporting low-tech manufacturing products and primary goods to more complex hi-tech goods like electronics, machinery, vehicles, and medical devices. The implementation of the EU - Vietnam Free Trade Agreement (EVFTA) last year is an example of this.

Besides, the Regional Comprehensive Economic Partnership (RCEP), which will officially come into force on January 1, 2022, can help local firms increase exports and attract high-quality goods for its consumers. In addition, the country is set to benefit from the demand for its exports like agriculture and fisheries products.

Mergers and acquisitions (M&A) are likely to continue to play a key role in Vietnam’s economy in 2022. While in 2020, M&A activities were disrupted due to the pandemic, in the first nine months of 2021, M&A deals with total disclosed value have already totalled 3 billion USD.

As Vietnam hopes to recover its economy, further robust M&A activity can be expected in 2022, especially when the government has also eased some requirements in the investment and enterprise laws to facilitate M&A deals, according to the article.

Due to the pandemic, the government unveiled several support packages for businesses and inpiduals to help spur the economy, the writing said, suggesting businesses should prepare for 2022, using these government measures to improve cash flow.

In addition, the easing of entry procedures and work permit requirements should help businesses and employees enter Vietnam for job opportunities.

Regarding tourism - a major contributor to the economy, from 2022, the government plans to allow international arrivals that are fully vaccinated to self-quarantine at home or their places of accommodation as long as they test negative. The Ministry of Culture, Sports, and Tourism has proposed that the Prime Minister consider restoring visa exemption for tourists who stay in Vietnam for less than 15 days. In addition, nine international flight routes have been given the green light to resume commercial flights.

In its conclusion, the article said 2021 brought significant challenges for many businesses in Vietnam who had to deal with local market developments along with concerns plaguing global supply chains exacerbated by the pandemic. Several issues that the country faced in 2021 are likely to continue into 2022.

Nevertheless, it added, a more targeted and focused development in key areas of the economy will present more opportunities for growth, particularly, in areas that help prop up Vietnam’s bottom line of economic stability and people’s livelihoods.

While Vietnam has suffered, its economy is on course to record positive growth in 2022. For the next year, it remains a strong candidate for investment from ASEAN and beyond. Given its investor-friendly policies, relative economic and political stability, cost efficiency, and consumer demand prospects, the country is likely to continue gaining from supply chains restructuring in Asia in addition to attracting a new range of investors in terms of geography and sectors, according to the writing./.

Source: VNA
en.vietnamplus.vn

Related News

Developing specialty coffee to enhance the value and reputation of Vietnamese coffee

Developing specialty coffee to enhance the value and reputation of Vietnamese coffee

VCN - Investing in the high-end segment is a way to increase value for the coffee industry, in which specialty coffee is a direction that businesses and cooperatives are interested in and is bringing positive results.
Vietnam automobile market and support problem

Vietnam automobile market and support problem

VCN - Continuing the downward trend of 2023 (up to 25%), in the first 4 months of 2024, the number of cars consumed on the market is still falling to a worrying level, high inventory, causing difficulties for automobile manufacturing and trading enterprises. The question is how the Vietnamese automobile industry will develop and how competitive the products will be in the context of the import tax reduction roadmap implemented when Vietnam implements its commitments in the Free Trade Agreement between Vietnam and the European Union (EVFTA).
Finance Ministries of Vietnam and Laos promote comprehensive cooperation

Finance Ministries of Vietnam and Laos promote comprehensive cooperation

VCN – On May 28, Minister of Finance Ho Duc Phoc had a meeting with Mr. Santiphab Phomvihane, Minister of Finance of the Lao People's Democratic Republic.
Increasing foreign investment resources from improving the business environment

Increasing foreign investment resources from improving the business environment

VCN - In the 2 years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business has decreased compared to previous years, reflecting a more cautious trend of FDI enterprises. due to the impact of the current unpredictable global economic context.

Latest News

PM orders sustainable development of construction materials industry

PM orders sustainable development of construction materials industry

Prime Minister Pham Minh Chinh on June 15 required restructuring in terms of organisation, administration, finance, and input materials at enterprises in the construction materials industry towards their sustainable development.
Seeking growth drivers for the Red River Delta region

Seeking growth drivers for the Red River Delta region

VCN - According to enterprises, promoting digital transformation alongside concretizing certain policy contents for the development of free trade zones will create numerous incentives for regional economic development, including the Red River Delta region.
Proactively forecast and carefully consider when to adjust prices

Proactively forecast and carefully consider when to adjust prices

VCN - In price management, the Government and the Ministry of Finance strongly require the implementation of solutions to stabilize market prices, along with public and transparent price declaration activities and not unreasonably increase prices of goods and services.
PM demands stronger efforts to make strategic institutional breakthrough

PM demands stronger efforts to make strategic institutional breakthrough

Prime Minister Pham Minh Chinh on June 13 demanded that the Government continue to enhance discipline, reform mindset and working methodology, and effectively implement the strategic institutional breakthrough to unlock all resources for development.

More News

PM urges stronger efforts to complete expressway target

PM urges stronger efforts to complete expressway target

Prime Minister Pham Minh Chinh has asked for greater efforts from ministries, sectors, and localities to realise the goal of completing 3,000 km of expressways nationwide by December 31, 2025.
Singaporean newspaper: Vietnam’s economy poised for gradual recovery

Singaporean newspaper: Vietnam’s economy poised for gradual recovery

Singapore’s maritimefairtrade.org recently published an article on the recovery of the Vietnamese economy, citing the latest World Bank Taking Stock bi-annual economic update with growth forecast to reach 5.5% in 2024 that will gradually rise to 6% by 2025.
China remains top priority in Vietnam’s foreign policy: President

China remains top priority in Vietnam’s foreign policy: President

Vietnam considers developing friendship and cooperative ties with China as a strategic choice and a top priority in its foreign policy of independence, self-reliance, and diversification and multilateralisation of external relations, President To Lam told Chinese Ambassador to Vietnam Xiong Bo at a reception in Hanoi on June 11.
Vietnam among six ASEAN countries with good economic growth: Maybank

Vietnam among six ASEAN countries with good economic growth: Maybank

The gross domestic product (GDP) growth of six ASEAN countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam - will recover to 4.5% and 4.7% in 2024 and 2025, respectively, from 4% in 2023, according to Maybank Research Pte Ltd forecast.
Domestic production sees green shoots

Domestic production sees green shoots

Vietnam ran a trade deficit in May as the import of major materials rebounded, signaling that green shoots are sprouting in domestic production, experts have said.
With the recovery momentum returning, businesses need to speed up credit

With the recovery momentum returning, businesses need to speed up credit

VCN - In recent instructions, the monetary policy regulator continues to urge banks to implement practical and effective solutions to strive for system-wide credit growth, which will be 5-6% by the end of the second quarter of 2024.
School-business cooperation for the goal of 50-100 thousand high-quality human resources

School-business cooperation for the goal of 50-100 thousand high-quality human resources

VCN - In the current context, the connection between schools and businesses is an inevitable trend, to both ensure and improve the quality of the school's training products and create quality human resources input for businesses.
Numerous factors behind the non-allocation of over VND 17.6 trillion in public investment capital

Numerous factors behind the non-allocation of over VND 17.6 trillion in public investment capital

VCN - According to the Ministry of Finance, the failure to allocate a relatively large amount of more than VND 17.614 trillion has affected the disbursement rate of public investment capital from the state budget in the early months of 2024.
Green economy needs joint efforts: insiders

Green economy needs joint efforts: insiders

Businesses need more support from the State to overcome obstacles in terms of capital, personnel, science and technology in order to promote green, sustainable production, insiders have said.
Read More

Your care

Latest Most read
PM orders sustainable development of construction materials industry

PM orders sustainable development of construction materials industry

Prime Minister Pham Minh Chinh on June 15 required restructuring in terms of organisation, administration, finance, and input materials at enterprises in the construction materials industry towards their sustainable development.
Seeking growth drivers for the Red River Delta region

Seeking growth drivers for the Red River Delta region

VCN - In early May, Prime Minister Pham Minh Chinh signed Decision 368/QD-TTg approving the planning for the Red River Delta region for the period 2021-2030, with a vision to 2050. Accordingly, the goal is for the region's gross regional domestic product
Proactively forecast and carefully consider when to adjust prices

Proactively forecast and carefully consider when to adjust prices

In price management, the Government and the Ministry of Finance strongly require the implementation of solutions to stabilize market prices, along with public and transparent price declaration activities
PM demands stronger efforts to make strategic institutional breakthrough

PM demands stronger efforts to make strategic institutional breakthrough

Prime Minister Pham Minh Chinh on June 13 demanded that the Government continue to enhance discipline, reform mindset and working methodology, and effectively implement the strategic institutional breakthrough to unlock all resources for development.
PM urges stronger efforts to complete expressway target

PM urges stronger efforts to complete expressway target

Prime Minister Pham Minh Chinh has asked for greater efforts from ministries, sectors, and localities to realise the goal of completing 3,000 km of expressways nationwide by December 31, 2025.
Mobile Version