At a Japanese-invested manufacturing assembly in Hanoi (Photo: VNA) Hanoi (VNA) – Vietnam is the most investment worthy place in ASEAN, basedon valid and practical grounds where improved economic diversification,international integration, reformed investment legislation and good economicpolicy must be counted, according to an article recently published on the US’s mondaq.com.
Interms of economic recovery and stable development, the author cited the "TheWorld in 2050" study by PwC consulting firm, which predicted that Vietnamwill have the secondhighest annual GDP-growth rate worldwide.
There will be an averagegrowth by 5.3% each year, from 2014 till 2050. That means Vietnam will have thefastest growing economy within Asia till 2050. In addition, theinflation rate is controlled by the Government with consumer price index to be inthe range of 3-5% for the whole year, which is far below the maximum allowedinflation rate of 4.5% in 2023. These two important macroeconomicindices have proved the Government's success to a certain extent in recoveringand maintaining stable development of the economy, he said.
According to the article, the Vietnamese Government is fiercely improving thebusiness and investment environment and making great attempts to achieve keyeconomic indicators of top regional countries. For that reason,Vietnam encourages FDI on projects that utilise advanced, emerging, high, orclean technology, modern management methods, and contribute positively toglobal production and supply chains.
Until now, Vietnam hasnegotiated, signed and put into effect a number of bilateral and multi-lateral freetrade agreements (FTAs) with almost all the big economies in the world. Of thefigure, 16 FTAs involving more than 60 partners have become effective, coveringall continents with a combined GDP accounting for nearly 90 percent of globalGDP. Looking at the liberalisation level of market access under the World TradeOrganisation (WTO), Vietnam is on par with Singapore - the most developedcountry in the Southeast Asia.
Vietnam has concluded an FTAwith the European Union and joined the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP). Thus, from an international trading andinvestment perspective, Vietnam is unmatched when it comes to partnership andopenness of market access.
The article pointed out that the new laws considered the most liberal and investor-friendly in the region, suchas the Enterprise Law, Investment Law and Public Private Partnership Law, havebeen adopted. Barriers to business and investment are removed to pavethe way for an open, transparent and full-of-opportunity environment forforeign investors.
In an attempt to easeburdens on investors, the Government issued a Decree in 2015 to provide moreflexibilities in foreign ownership ratio in public listed companies, up to 100%in certain cases, and allow foreign investors to make unlimited investment inGovernment bonds, bonds guaranteed by the Government, bonds of the provincialauthorities or enterprises.
Concluding the article, the author said Vietnam is a country of changes and currentlyoffering increasing opportunities for foreign businesses. The underlyingstrength of the economy is reflected in, among others, controlled macroeconomicindicators, strong productivity gains and extensive integration into regionaland global economy. It is now exactly time for foreign investors to start theirbusiness plans and grasp the upcoming clear opportunities./.
