In the context that Vietnam has just experienced a challenging year due to the severe impact of the pandemic, Dezan Shira & Associates Group commented that foreign investors are still confident and optimistic about the economic growth prospects of Vietnam in 2022.
(Hochiminh city, Vietnam)
In an article published on the Vietnam Briefing website, experts from Dezan Shira & Associates stated: In 2021, many foreign enterprises in Vietnam faced fierce challenges when they have to cope with the changing market as well as concern about the global supply chain facing difficulties due to the Covid-19 pandemic. Some challenges may continue in 2022. However, Vietnam’s targeted and focused development will provide more growth opportunities, especially in areas that help promote economic stability and people’s livelihoods.
The article points out the factors contributing to Vietnam’s economic growth this year. In particular, Free Trade Agreements (FTAs) are an important factor to attract investors. According to experts, Vietnam has used FTAs as a tool to enhance economic strength and financial security. This helps Vietnam continue to redirect exports, from low-tech products and primary goods to more complex, and high-tech goods. The implementation of the EU-Vietnam Free Trade Agreement (EVFTA) from 2020 is a typical example. With the Regional Comprehensive Economic Partnership (RCEP) taking effect from January 1, 2022, Vietnamese businesses have the opportunity to boost exports and bring high-quality goods to consumers. Vietnam also benefits from the high demand for Vietnamese agricultural exports.
Another important factor, according to the article, is the support packages provided by the Vietnamese Government for businesses to boost the economy through the pandemic. Along with easing entry procedures, the Vietnamese Government is also expected to ease regulations on permits for foreign workers, creating more favorable conditions for businesses and workers.
According to the article, Vietnam’s economy is considered to record positive growth in 2022. Vietnam continues to be an attractive investment destination from ASEAN. With investor-friendly policies, economic and political stability, and high consumer demand prospects, Vietnam will continue to benefit from the restructuring of supply chains in Asia, attracting many new investors.