The Brussels Times of Belgium has published an article highlighting that Vietnam – an EU development partner in the Indo-Pacific – is becoming a beacon in the region with the ability to control inflation and maintain high levels of economic growth despite turbulent international affairs .
In the article entitled “The comprehensive cooperation for 30 years: for the prosperity and well-being of the EU and the citizens of Vietnam”, the author wrote that the cooperation between the EU and Vietnam, in particular in the areas of trade and sustainable development , has created favorable conditions for citizens to improve the quality of life. It has also fostered dialogue in response to global challenges and crises.
While the global economy faces a potential global recession, international financial institutions have come out with strong forecasts for the Vietnamese economy, it said. The recent World Bank report published in August predicted that Vietnam’s GDP growth would increase significantly from 2.6% in 2021 to 7.5% in 2022, while inflation would remain stable at 3.8%. The International Monetary Fund forecasts GDP growth of 6.7% in 2023, significantly above the regional and global average.
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Most recently, credit rating agency Moody’s upgraded Vietnam’s rating from Ba3 to Ba2, with a stable outlook. Nikkei rated Vietnam’s COVID-19 recovery index ranked second in the world, rising 12 places.
The article attributed Vietnam’s excellent performance to the government’s flexible management policies, such as supporting low interest rates, maintaining credit growth and the socio-economic recovery and development program.
In addition, the early implementation of the strategy of living and working in Vietnam during the COVID-19 pandemic and the acceleration of the coverage of the COVID-19 vaccine have restored socio-economic activities at home and abroad and improved the income of workers and the livelihoods of citizens stabilized.
According to the article, Vietnam aims to create a favorable investment climate for international companies and enterprises. Data from the Asian Development Bank (ADB) shows that infrastructure investment in both Vietnam’s public and private branches has reached about 5.7% of GDP in recent years, highest in Southeast Asia and second in Asia after China.
In addition to efforts to improve the quality of the economic environment, Vietnam is constantly improving its commitment to sustainable trade. To date, Vietnam has acceded to 25 International Labor Organization (ILO) Labor Conventions, including 7/8 of the core conventions (collective bargaining, prevention of employment discrimination, child labor and forced labour. In particular, Vietnam is also one of the first countries to sign two ILO ratify occupational safety and health instruments, which are expected to be added to the core conventions group.
European companies see Vietnam as a promising business investment center with many high-quality and sustainable projects. Recent investment statistics show the upward trend in investment of some EU countries in Vietnam, such as the Netherlands (26%), Denmark (240%), Sweden (63%), the Republic of Ireland (235%), and Belgium (284%).
According to the assessment of the EuroCharm office in Vietnam, the Business Climate Index (BCI) reached 68.8 points in the second quarter of 2022, 7.6 points higher than in the fourth quarter of 2021. Many indicators improved, such as the satisfaction of entrepreneurs with Vietnam’s efforts to attract and retain foreign direct investment (FDI). Up to 76% of respondents expect their companies to increase FDI in Vietnam before the end of the third quarter.
According to the article, Vietnam and the EU share many objectives, goals and visions in upholding multilateralism, promoting environmental protection, green and sustainable development, innovation and digital transformation.
Promoting bilateral cooperation in various fields will support Vietnam in fulfilling its strategic and contingent goals of improving human livelihoods and contributing to the advancement of humanity and the development of the world, it said.
@ Vietnam News Agency
