Experts confident in Vietnam’s economic recovery
Although Vietnam’s growth has slowed down amid global economic crises, the country is showing stronger performance than the majority of others in the world and continuing to be an attractive destination for foreign manufacturers, according to insiders.
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| Processing shrimp for export (Photo: VNA) |
Singapore’s DBS Bank Limited noted that in the first half of 2023, the amount of foreign direct investment (FDI) poured to Vietnam rose about 30%, commenting that it is still an attractive destination for investors thanks to the production transition trend, free trade agreements it has signed, and its high middle-term economic outlook at 6-7% as well as the growing electronic ecosystem.
The FDI inflows showed that foreign investors’ confidence in the long-term potential of Vietnam has maintained.
The bank said it believes that in the second half of this year, Vietnam’s exports will increase again along with the recovery of the world electronics sector, while domestic services and tourism sector will continue to thrive and support the country’s economy.
Marco Förster, head of ASEAN advisory at Dezan Shira & Associates, a consultancy firm, said that despite the current difficulties, Vietnam is predicted to experience rapid economic growth in the medium term due to its emerging position as a leading manufacturing hub in Southeast Asia, its well-educated population, and increased capital investment.
S&P Global Ratings forecast that the Vietnamese economy will recover in the next 24 months as global demand picks up and Vietnam gradually tackles domestic challenges.
Meanwhile, in a recently-released report, the OECD predicted that the Vietnamese economy will post a 6.5% growth in 2023 and 6.6% in 2024.
(Source: VNA)
