Private investments in Vietnam have reached a new peak in contrast to the trend towards decline around the world and in the ASEAN region. (Photo: baoquocte.vn)Hanoi (VNA) - Private investments in Vietnam have reached a newpeak in contrast to the trend towards decline around the world and in the ASEANregion due to the impact of COVID-19.
Thanks to its success in containing the pandemic, Vietnam has emerged as a brightspot, with economic growth reaching 2.91 percent in 2020 - a positive rategiven the gloomy global picture.
The International Monetary Fund (IMF) forecast that its GDP will grow 6.7 percentthis year. Goldman Sachs and HSBC are even more optimistic about the economy,which, they said, will expand 8.1 percent in 2021.
Vietnam’s middle and upper class is expected to grow substantially, from 25percent of the national population in 2017 to 45 percent in 2030.
Moreover, free trade agreements to which Vietnam is a signatory have benefitedthe country regarding tariffs and exports, especially smartphones andelectronic products, garments and textiles, footwear, and agriculturalproducts.
Adjustments to the Law on Enterprises and the Law on Investment have alsoplayed a part in the country’s positive outlook.
In private investment, a total of 59 transactions worth 1.14 billion USD wereconducted in 2020, with technology retaining its leading role over the lastfive years.
Local retail and service firms associated with technological solutions havecaught the eye of investors, with notable investments including 100 million USDby Warburg Pincus in Momo e-wallet and the Northstar Group’s 130 million USD inTiki - one of the three leading e-commerce platforms in the country.
Conglomerate Vingroup posted a record in this regard after GIC injected 500million USD into Vincommerce in 2019 and KKR funnelled 650 million USD inTemasek and Vinhomes in 2020.
Investments in healthcare have also increased rapidly, as Mekong Capital andVinaCapital have poured 31.8 million USD into Pharmacity and 26.7 million USDinto Thu Cuc Hospital, respectively.
Sectors such as transportation, education, healthcare, and technology areexpected to become magnets for investors this year./.
VNA
