Vietnam’s economy has started to thrive while most of Asian economies is slowing economically and moving towards consumer-led growth, the Standards & Poor (S&P) fund said in its recent report.
Hanoi (VNA) – Vietnam’s economy has started to thrive while most of Asian economies is slowing economically and moving towards consumer-led growth, the Standards & Pಌoor (S&P) fund said in its recent report.
According to S&P, four years ago the Vietnamese economy was struggling with non-performing loans as the Government focused on feeding credit to its State-owned enterprises.
However, since then the country has attracted sufficient foreign direct investment (FDI) to drive strong export growth despite sluggish demand and falling global prices.
Electronics exports have been growing at almost 33 percent per year for three years, making up 18-29 percent of the total exports. Meanwhile, garment-textile has stayed at about 20 percent of all exports.
Overall, FDI doubled from 2012 to 2014, compared with the previous three years. Japan and the Republic of Korea each contributed about 22 percent, Singapore 16 percent, China and Hong Kong 13 percent, and China ’s Taiwan 7.5 percent.
Australia’s own trade with Vietnam soared 35 percent in 2014 to 8 billion AUD (equivalent to 5.7 billion USD) though investment in the Southeast Asian country has only reached a modest 1.2 billion AUD (0.7 billion USD).
The size of the workforce in Vietnam which has a population of 91 million is an important element, S&P said, attributing the productivity to the provision of new-cutting edge equipment.
The World Bank estimates that Vietnam’s working-age population will keep growing to 2030, whereas China’s is starting to decline.
According to the Singapore-based business analysing agency IMA Asia, Vietnam is set to gain more than any of the other 11 members from the Trans-Pacific Partnership (TPP) agreement through lower import tariffs on its branded exports.
Vietnam is likely to grow 6.2 percent and 6.4 percent in 2015 and 2016 respectively, IMA Asia forecasts.-VNA
The GDP grew by 6.81 percent in the third quarter and by 6.5 percent in the first nine months of this year, the Central Institute for CIEM has reported.
Vietnam has seen clear progress this year in many areas like banking sector reforms, capital markets and foreign investment. Economist Vu Dinh Anh speaks with Vietnam News Agency about this.
Vietnam’s economy will escape from recession and start a new recovery cycle, according to the National Centre for Socio-Economic Information and Forecast (NCIF).
Restructuring is decisive to the quality of economic growth and the level of economic development amidst new challenges posed by international integration, economists said at a seminar on Dec. 17.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
The zone will cover 1,881 ha, comprising functional areas for production, logistics, trade and services, digital technology industry, information technology, and innovation.
Dung underlined several key objectives, including a comprehensive review of the legal framework governing SOEs, and called for updates that reflect international standards and support modern, transparent governance.
While the US market has become more difficult to access due to new tax policies, Australia could play the role of a trade cushion, helping to reduce shocks and maintain export momentum for Vietnam's shrimp industry.
Vietnam Cycle Expo 2025 will coincide with the Vietnam Sport Show 2025, an international exhibition on sports and outdoor entertainment, expected to attract more than 20,000 visitors in the three-day event.
Despite global economic uncertainties, Binh Duong has maintained strong momentum in both exports and industrial production during the first half of 2025.
A garment-textile factory in Vietnam (Photo: VNA)
