Vietnam has become an increasingly attractive emerging market of Asia thanks to its impressive economic growth coupled with progress on state-owned enterprise (SOE) reform and regulatory changes, opined experts at an investment conference on Wednesday in Hanoi.
Vietnam, located in the favourable geographic area of Southeast Asia, has taken the advantages of the growth opportunities to become one of the most attractive emerging markets, said Tony Shale, head of Euromoney Institutional Investor PLC in Asia, at a conference, co-hosted by the Vietnam Ministry of Planning and Investment and business and finance magazine Euromoney.
Boasting a 6.28 per cent growth in the first half of 2015, plus the proactive economic integration through free trade agreements, overseas investors are keeping their eyes open for this country, particularly for opportunities in real estate and infrastructure, agriculture, SOE equitisation and capital market sectors.
Bui Quang Vinh, Minister of Planning and Investment, promised to create more favourable conditions for investors and at the same time to improve the country’s competitiveness even as Vietnam has privatised hundreds of local state-owned entities since 2011 and slashed the foreign ownership limit in various firms.
According to Prime Minister Nguyen Tan Dzung, the Vietnamese capital market is of a small scale. Therefore, such investment incentives are expected to drive investors’ attention into Vietnam.
“Notwithstanding the overall challenges of the global economy, Vietnam has retained economic growth of around six per cent over the past five years,” Dzung addressed the conference, saying the GDP growth of the country is anticipated to touch 6.5-7 per cent during the 2016-2020 period.
“I believe Vietnam at the moment is a great opportunity for foreign investors to make investments,” he said.