Is 30 years enough for Vietnam to enter the top 20 major economies in the world?
According to Business Times (Singapore), Vietnam can become Asia’s new tiger for the following reasons: Firstly, the explosion of the wealthy class. The second is the startup environment. The third is the explosion of renewable energy. Fourth is the abundance of the workforce. Fifth is the development of the real estate market. Sixth is the big infrastructure need.
Specifically, Vietnam’s wealthy class is growing strongly. In Vietnam, gold-plated hotels, luxury apartments or flashy sports cars all represent the rise of the super-rich who are stronger than ever.
The startup environment in Vietnam is increasingly developing. Vietnam is known as the software outsourcing center of Southeast Asia. With high-skilled labor and lower labor force than other countries in the region, Vietnam becomes an attractive place for technology companies to use as a platform for development.
Besides, renewable energy is of particular interest in Vietnam. Vietnam is currently the country with the largest solar power capacity in Southeast Asia, with 16.6 gigawatts in 2020. The government is currently implementing many policies to promote this renewable energy transition.
Currently, the real estate market in Vietnam is quite developed. Vietnam is attracting capital from real estate companies in Singapore, including CapitaLand, Keppel and Mapletree Logistics Trust. In fact, the real estate industry in general and the luxury apartment segment in Vietnam in particular have become popular.
So far, Vietnam has been very active in major infrastructure development. Vietnam’s construction industry is forecast to continue to recover in 2022 when a number of large-scale infrastructure projects are implemented.
Vietnam has made amendments to its construction law and investment law to help attract more investment inflows into this sector. In particular, companies in other parts of Southeast Asia are actively seeking investment opportunities in Vietnam.
Therefore, Business Times (Singapore) once emphasized, Vietnam fully deserves the title of the new Asian tiger.
Vietnam is a country with a strong economy, a growing middle class and a favorable investment environment. Specifically, according to the World Bank, Vietnam’s middle class currently accounts for 13% of the country’s population and is expected to increase to 26% by 2026. Vietnam is among the top 5 countries in the region, including including Thailand, Malaysia, Indonesia and the Philippines on the rise of the middle class.
Along with that, at the Conference “Administrative regulation reform: The key to successful implementation of EVFTA” 2020, the President of Eurocham once said that the Vietnamese Government has made efforts to reform the business environment, domestic investment.
As a result, Vietnam has become a more attractive market in the eyes of investors. With low business costs, a strong growing economy, a growing middle class and a favorable environment, Vietnam has become an attractive destination for FDI.
Therefore, Eurocham said, in the next few decades, Vietnam is expected to be one of the fastest growing economies in the world, with an estimated average annual GDP growth rate of 5% to 5%. year 2050.
Moreover, domestic demand is high, unemployment is low, and exports are strong thanks to FDI inflows. According to Eurocham, all those factors will make Vietnam become the 20th largest economy in the world and 10th in Asia by 2050.
To achieve this goal, Vietnam needs to continue to promote the improvement of the business environment. Currently, Vietnam ranks 70 out of 190 countries worldwide in the World Bank’s Ease of Doing Business 2020. In the ASEAN region, Vietnam ranks 5th, but the gap is still quite large. far from Thailand, Malaysia.
The goal of becoming Asia’s new economic tiger is also one of the focuses of the Government’s attention.
The government has identified one of the levers to help Vietnam achieve this important goal: Green energy development and sustainable development; productivity improvement in the context of industrialization; improve the business investment environment through reform of risk management, especially in credit, trade and investment.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
