According to the website vietnam-briefing.com, investments in infrastructure, commercial environment and competitive wages are the three main factors that help Vietnam’s economy to grow steadily.
In terms of infrastructure investment, Vietnam has invested about 6% of its gross domestic product (GDP) in infrastructure – one of the highest levels of investment in the ASEAN region. This expenditure includes some major investment items, such as the North-South highway from Hanoi to Ho Chi Minh City; Long Thanh International Airport to replace the congested Tan Son Nhat Airport; tram projects in Hanoi and Ho Chi Minh City, as well as combined heat and power plants and waste-to-energy plants…
In terms of the commercial climate, Vietnam has been actively signing bilateral trade agreements with countries around the world over the years. As an ASEAN member, Vietnam participates in a number of free trade agreements (FTAs) the bloc has signed, creating the conditions for it to develop into a manufacturing center and expand its export network. The European Union (EU)-Vietnam Free Trade Agreement (EVFTA) has helped boost Vietnamese exports despite the COVID-19 pandemic, the UK-Vietnam Free Trade Agreement (UKVFTA) is helping in two ways to reach nearly 6.6 billion by 2021 convert USD. Meanwhile, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)… helps boost Vietnam’s trade by increasing exports to Canada and Mexico.
In addition, the open business climate in Vietnam, the government’s many investment-friendly policies to attract investment, and socio-economic development are also important factors to attract investment to Vietnam. Increased foreign direct investment in Vietnam is also boosting the country’s economic growth thanks to Vietnam’s trade and labor climate, according to the European Chamber of Commerce, even as factories are not operating due to reduced demand in Western markets, from textiles to shoes to furniture.
One of the biggest advantages of Vietnam is the competitive salary. Vietnam’s young workforce is quite numerous with over 40% of Vietnamese students graduating from universities majoring in science and engineering. As Vietnam experiences economic growth, wages will also rise. Therefore, Vietnam will need to maintain a balance between inflation, wages and productivity to avoid disruption to the overall labor market.
Therefore, the website vietnam-briefing.com noted that Vietnam’s economic outlook remains promising even as geopolitical tensions persist. The costs may add up in the short term, but long-term investors will reap huge rewards.
@ Cafe
