Source: Socialist Republic of Vietnam
Lauding Vietnam as one of the countries with the highest economic growth in the world, standing at 7.02% last year, the article noted it has enjoyed an export surplus for four consecutive years in the context of falling trade in many countries.
Forbes said Vietnam has made much progress in improving its business environment and restructuring its economy over the past decade. The Global Competitiveness Index 2019 revealed the country had jumped ten places since 2018 to 67th, making it the most improved country.
The World Bank’s 2020 Doing Business report, meanwhile, ranked Vietnam 70th out of 190 economies based on two main factors: improved access to credit information through data distribution from retailers and an upgraded information technology infrastructure that makes paying taxes easier for most businesses.
Its improved business environment has also helped it attract more foreign investment. Pledged FDI surpassed US$38 billion last year; a ten-year high and year-on-year increase of 7.2%.
According to the article, Vietnam has signed 12 free trade agreements to date, including “new-generation” deals with broader commitments. Impressively, the EU signed a landmark free trade agreement with the country in June 2019 – the first of its kind with a developing country in Asia, paving the way for tariff reductions on 99% of all goods shipped between the bloc and Vietnam.
Vietnam is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), it noted.
Lauding Vietnam’s achievements in terms of how the country dealt with the coronavirus outbreak, Forbes quoted the Financial Times as saying that “Vietnam has proved a model in containing the disease in a country with limited resources but determined leadership.”
Vietnam shares a 1,100-km-long border with China but had reported only 270 infections and no fatalities as at April 25, it said, adding that success in containing the COVID-19 pandemic domestically allows Vietnam to have more room to manoeuvre in its key role in regional and international diplomatic forums.
Last year, with 192 out of 193 votes, Vietnam was officially elected as a non-permanent member of the UN Security Council for the 2020-2021 term. This is the second time it has held the post, demonstrating its desire to contribute to global security and peace and proving it is a responsible member of the UN. Vietnam is also Chair of ASEAN in 2020 – the first time it has held the two positions at the same time. This presents an opportunity for it to take advantage of bilateral relations with other countries and create new momentum for enhancing its role and profile.
Vietnam was among the first in the world to reopen its economy following the COVID-19 outbreak, on April 23. It has maintained socioeconomic stability in recent decades and its favourable business environment and free trade agreements are expected to help increase foreign investment in the future.
International investors should consider investing in Vietnam, Forbes added, as many other countries are now struggling with the COVID-19 pandemic and the possibility of economic recession.