(VOVWORLD) - Over the past week, many articles and international organizations have praised Vietnam as a destination for long-term investment. Vietnam is also forecast to become one of the largest consumer markets in Asia.
 Vietnam leads Southeast Asia in attracting long-term investment |
Singapore-based United Overseas Bank (UOB) has projected an economic growth rate of 6% for Vietnam in 2024 based on growing semiconductor chip demand, the recovery of the Chinese and other regional economies, and the ongoing supply chain shifts. Economic growth in the second quarter will edge up to 6% from the first quarter’s 5.66%. Inflation will be controlled at 3.8%.
In 2025 UOB expects the Vietnamese economy to grow 6.4%. Other recent economic indicators for Vietnam also suggest a positive outlook for the Vietnamese economy. Realized foreign direct investment rose 7.8% to 8.3 billion USD between January and May, the fastest growth since 2018.
In its recent "Vietnam at a glance" report, HSBC identified Vietnam as the fastest growing digital economy in Southeast Asia in 2023, with the potential to become the second largest digital economy by 2030.
With a population of more than 100 million people, 70% of them of working age, Vietnam has strong potential for digital technology consumption.
Malaysian website The Star said the wave of innovative startups in Vietnam has developed at a “dizzying” speed, attracting the attention of many domestic and foreign investors. It said Vietnam is currently the third pillar of the Southeast Asian start-up golden triangle, along with Singapore and Indonesia, having the perfect combination of technology talent and innovation culture.
According to experts, the increase of Foreign Direct Investment (FDI) in Vietnam and business growth will strengthen the country’s position in the Asian market. Torben Minko, Vice President of the European Chamber of Commerce in Vietnam (EuroCham), said that despite weak supply chains, weak global growth, and tightened finance, businesses in Vietnam are in a better position than businesses elsewhere.
Michele Wee, CEO of Standard Chartered Bank Vietnam, said Vietnam is becoming an important destination for the technology sector and in the future the country will no longer be just a low-cost manufacturer but will begin to develop the capability of manufacturing high-quality products.