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<p style="text-align:justify">The economy of Vietnam is going through a dynamic shift, marked by robust growth and the development of several key trends supporting a stronger looking future, according to an article recently published by the Hong Kong-based news site asianinsiders.com.</p>

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			<td style="text-align:justify"><img alt="A corner of Ho Chi Minh City (Photo: VNA)" src="https://image-en.nhandan.vn/w800/Uploaded/2024/bpcgtqvp/2024_03_13/vietnamese-economy-making-dynamic-shift-with-robust-growth-hong-kong-news-site-2433.jpg" /></td>
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			<td style="text-align:center">A corner of Ho Chi Minh City (Photo: VNA)</td>
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<p style="text-align:justify">Examining the forces driving the country&rsquo;s economic outlook and offers insights into its promising future, the author wrote: &ldquo;In modern times, the economy of Vietnam is centrally directed through a series of five-year plans. These are a series of economic development initiatives, broadly shaped by the central government, mapping strategies for economic development, growth targets and launching reforms.&rdquo;</p>

<p style="text-align:justify">The article said recognising the need for technical innovation, the Vietnamese government has made substantial investments in research and development, evident both in the rapidly improving economy as well as its ascent on the Global Innovation Index (GII), ranking 46th of 132 countries in 2023, according to the GII report released by the World Intellectual Property Organisation (WIPO). The country also maintains its second position amongst lower middle-income countries.</p>

<p style="text-align:justify">Most major manufacturers seek to diversify their production as well as take advantage of Vietnam&rsquo;s still lower labour rates. Companies like Samsung, LG, Foxconn, Panasonic, Bosch, GE, Piaggio and Yamaha have established either local research and development facilities or a full manufacturing base, which underlines Vietnam&rsquo;s potential for being an innovation as well as production hub.</p>

<p style="text-align:justify">The article also pointed out that the economy has benefited from geographic location, with its long 3,300km eastern coastline offering 45 seaports of various grades. It is also significantly enhanced by recent and looming improvements to its infrastructure and by the major influx of foreign direct investment (FDI). The country has been successful in attracting significant investments, making it one of the top countries globally in this regard, said the author. In 2023, the economy of Vietnam attracted 36.6 billion USD, an annual increase of 32%. There were 111 countries and territories contributed to such investment, with the bulk coming from Asian ones.</p>

<p style="text-align:justify">&ldquo;The strong recent FDI inflows speak of improved confidence in the future prospects for the economy of Vietnam.&rdquo;</p>

<p style="text-align:justify">According to the article, Vietnam&rsquo;s largest trading partner is China, with the US being its largest export market. This is likely to grow further with the signing last year of the Comprehensive Strategic Partnership with Washington, in preparation for the coming US recognition of Vietnam as a market economy.</p>

<p style="text-align:justify">The nation is looking to take a leading role in the green economy and sustainability, while dramatically improving its digital infrastructure. Vietnam ranks 86 out of 193 countries and territories in terms of digital government according to the UN, with the e-government development index higher than the global average.</p>

<p style="text-align:justify">In conclusion, the author wrote: &ldquo;With strong GDP growth, a solid increase in FDI and significant improvements in infrastructure, Vietnam remains one of the globes rising economies. With the labour market rebounding and a surging middle class, there is a noticeable uptick in domestic consumption. The double impact of export-driven growth and a thriving domestic market position the economy of Vietnam for sustained and dynamic growth.&rdquo;.</p>

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