Singapore Institute highlights Vietnam as attractive investment destination
VOV.VN - Vietnam is still being viewed as an attractive destination, with the problems which have arose during the course of the past year not putting off foreign investors, according to a recent report by Singapore Institute of International Affairs (SIIA).
Entitled “From Crisis to Endemic: Stumbling or Pressing Ahead?”, the report examines the economies of Indonesia, Vietnam, Malaysia, and Thailand, which combine to account for over 70% of overall ASEAN gross domestic product (GDP).
Last year saw the country hailed as a model for its ability to curb the initial COVID-19 outbreak, with discipline and social support among local people for strong measures, thereby resulting in very low, near-zero, numbers. However, this changed when the country experienced a surge of cases starting from 27 April, largely driven by the Delta variant, with the situation being unable to return to the previous low levels of infections.
The extensive lockdowns put in place to prevent the spread of COVID-19 have therefore disrupted not only local consumption, but also impacted on the manufacturing and supply chain activities to numerous export markets. The impact of the pandemic has especially been felt by manufacturers of garments and electronics, noted the report.
Despite these challenges, at a macro-level the Vietnamese economy has shown considerable resilience. Even amidst the pandemic situation this year, trade numbers have remained strong, with total Vietnamese trade value of goods up 33.5% annually in the first five months of the year. This is widely supported by strong economic recoveries seen in major markets, especially the United States and China, according to the report.
The report outlines that challenges and the impact experienced by business operations and supply chains this year could still impact the future. Nevertheless, economists forecast that the nation should still attract approximately US$30 billion in foreign direct investment (FDI) this year, a 2% rise on-year.
During a conference held to announce the report, experts stated that the Vietnamese investment environment over the long term is prominent compared to other ASEAN major economies thanks to consistent political stability. Vietnamese attraction also comes from the country’s special policies to facilitate production and technology development, they said.