The country’s population is forecast to hit 106 million by 2050 with the middle class on the rise, which turns the market into a favourable one for retail businesses, according to JETRO.
Vice-Chairman of the European Chamber of Commerce in Viet Nam (EuroCham) Torben Minko said that European firms are confident about Viet Nam’s efforts in COVID-19 prevention and control, as industrial parks maintain operations, the number of laid-off workers is kept to a minimum and the supply chain is maintained.
A recent survey by EuroCham revealed that the Business Climate Index (BCI) hit 73.9 points in the first quarter of this year, the highest level since Q3 2019 before the pandemic broke out.
When asked about the prospects of Viet Nam’s business environment in the next quarter, 67 percent predicted either “excellent” or “good” - a 12 percent increase compared to the previous one.
EuroCham Chairman Alain Cany said that while COVID-19 wreaks havoc in countries around the world, Viet Nam can be certain that companies can operate their business without interruptions.
For her part, Michele Wee, Chief Executive Officer at Standard Chartered Bank Viet Nam, said that the FDI influx to Viet Nam will be maintained in the medium term.
The country posted a GDP growth rate of 2.91 percent in 2020, being among the economies with the highest economic expansion in the year.
Foreign investors pumped nearly 14 billion USD into the country as of May 20, a year-on-year increase of 0.8 percent, according to the Ministry of Planning and Investment.
Disbursed FDI in Viet Nam hit 7.15 billion USD in the first five months, an increase of 6.7 percent compared to the same period last year.
Global credit rating agencies of Moody’s, S&P and Fitch recently revised Viet Nam’s outlook to “positive”.