Vietnam has been ranked seventh out of the 10 countries seen as havingthe best prospects for long-term growth, announced HSBC on the businessand financial news website CNBC.com.
In HSBC’s report “The World in2050” which forecasts how the economic landscape will change over thenext 40 years, HSBC projected the country’s annual growth at 5.2 percentwith its GDP rising to 451 billion USD by 2050.
According to HSBC,as the world’s second-largest exporter of rice, agricultural exports hasalways made a major part in Vietnam’s economy. However this is rapidlychanging as the government moves to liberalise and diversify theeconomy.
While state-owned enterprises contribute 40 percent ofthe country’s GDP, overseas investment has been increasing sharply sincethe country became part of the World Trade Organisation in 2007.
Vietnam’slow-cost manufacturing base has attracted a wave of foreign investors,particularly in the retail clothing and technology sectors, as ancheaper alternative to China.
Intel, the first internationaltechnology company to make a major investment in the country six yearsago, has helped to raise Vietnam’s profile as an investment destination.A long list of companies including Samsung, Canon and Foxconn havefollowed, investing millions of dollars into developing manufacturingoperations in the country.
Analysts say this is helping to laythe foundations for Vietnam to become Asia’s next big electronicsmanufacturing hub, said HSBC in its report.-VNA
In HSBC’s report “The World in2050” which forecasts how the economic landscape will change over thenext 40 years, HSBC projected the country’s annual growth at 5.2 percentwith its GDP rising to 451 billion USD by 2050.
According to HSBC,as the world’s second-largest exporter of rice, agricultural exports hasalways made a major part in Vietnam’s economy. However this is rapidlychanging as the government moves to liberalise and diversify theeconomy.
While state-owned enterprises contribute 40 percent ofthe country’s GDP, overseas investment has been increasing sharply sincethe country became part of the World Trade Organisation in 2007.
Vietnam’slow-cost manufacturing base has attracted a wave of foreign investors,particularly in the retail clothing and technology sectors, as ancheaper alternative to China.
Intel, the first internationaltechnology company to make a major investment in the country six yearsago, has helped to raise Vietnam’s profile as an investment destination.A long list of companies including Samsung, Canon and Foxconn havefollowed, investing millions of dollars into developing manufacturingoperations in the country.
Analysts say this is helping to laythe foundations for Vietnam to become Asia’s next big electronicsmanufacturing hub, said HSBC in its report.-VNA
