The success of the APEC Summit Week 2017 has opened up many
opportunities for Vietnam to welcome foreign investors.
Vietnam is one of the fastest-growing economies in the world,
promoted by Foreign Direct Investment (FDI), Exports and Domestic Demand.
Vietnam is currently one of the most dynamic developing
countries in Southeast Asia with a population of more than 95 million according
to the November 2017 data, with an average age of 31 years. This is the golden
population period of Vietnam.
With a young population structure, high levels of education,
as well as skilled labor costs in Vietnam just about one-third in China, so
Vietnam has become a major destination for foreign direct investment (FDI) of
Asia. Data recorded by the ILO - Global Wage Database, the average salary of
the Vietnamese people is at $ 197 / month in 2014/15, $ 275 in the first 6
months of 2017, much lower than other countries in Asia, such as Singapore,
Japan , Korea, Hong Kong, China ...
In Vietnam, FDI plays one of the important growth drivers of
the economy. FDI flows through foreign invested enterprises in Vietnam can
include Samsung, Toyota, Panasonic, Aeon ... At present, FDI contributes 25% to
the economy.
Vietnam has also been pursuing a model of economic growth
driven by exports. For more than a decade, Vietnam has signed 12 bilateral and
multilateral free trade agreements with other countries. At this time, smart
phones, electronics and computers are commodities that now make up more than
50% of Vietnam's exports, compared to only 6% six years ago.
Vietnam is a trading partner of many countries and regions in
the world including Western European countries, United States of America, South Korea, Japan
and ASEAN.
Another factor boosting Vietnam's economic growth is the rate
of urbanization that has risen to 36.6 percent by the end of 2016. That has led
to rising incomes and middle class in the society. The Organization for
Economic Co-operation and Development (OECD) estimates that Vietnam's
consumption will increase 20 times in the next two decades.
On the other hand, Vietnam is also one of the countries that
invest heavily in infrastructure among Asian countries (just behind China).
Over the past three years, total public and private investment in
infrastructure has averaged 5.7% of GDP, according to data from the Asian
Development Bank. This is the highest level spending on infrastructure
construction in Southeast Asia. By comparison, Indonesia and the Philippines
had a 3% lower spending rate compared to less than 2% in Bangladesh and
Malaysia.
In terms of investment activities, in the first half of 2017,
foreign investment rate accounted for 25% of total investment, 36% of public
investment and 39% of private investment.
From the State side, the Government of Vietnam has been
showing determination to "promote" the process of restructuring and
equitization of foreign enterprises. Not only does it promote equitization, the
Government also removes barriers and enhances reforms in the equitization
mechanism. At the same time, listing large capitalized companies on the stock
market and reduce state ownership rate to create new opportunities for domestic
and foreign investors.
In short, investment opportunities in Vietnam
market still a lot of potential, especially when market valuations are still
lower than neighboring markets and ROE, as well as high income. Especially, the
potential areas in Viet Nam in the future is certainly as consumer group,
retailers, infrastructure, port transportation, technology, industry,
pharmaceuticals, and other utilities.
Source: ndh.vn
Source: ndh.vn
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