Vietnam is one of the world’s fasting growing economies, not least due to decisive reforms the communist government have laid out in recent years. President Barack Obama will witness this first hand when he visits the S.E. Asian state in late May.
London, England, June 29, 2016 — The country has received glowing commendations from the IMF and most observers put this down to its low inflation, stronger than average growth and solid foreign investment. The International Monetary Fund said the nation had achieved “impressive” results in the last decade.
“What sets Vietnam apart from a number of countries in the region is its commitment to deliver a decent standard of living for their population,” said Jim Yong Kim, President of the World Bank.
Kim also commented that a ‘hands off’ approach by the government with respect to the nation’s economy was a factor that has driven growth quickly.
“I think an impressive part of the structure of the Vietnamese economy is that it is very much market driven. Vietnam has built up good relationships with international trading partners and we are seeing substantial investment coming in.” he said.
Some observers have pointed to the still high level of corruption present in the country, and the Vietnamese government admit this is an area they need to crack down on, along with improved training in blue collar sectors.
Foreign investment has been surprisingly good considering Vietnam’s often hazy reform policies, as many big multinationals understandably feel the pattern of powerful economic development outweighs these concerns.
Wouter Wersch, president and chief executive of GE in ASEAN, a company who invest heavily in the energy sector in the country, said “It’s not just traditional energy like oil and gas that we see as our only opportunity in Vietnam, we are also looking closely at the emerging renewables sector as a potential target for major investment in the country.
GE has had a presence in Vietnam for over 20 years and employs nearly a thousand locals, and do not limit themselves to energy. They are also highly active in technological development in the aviation and health sectors.
Richard Sharpe, Co-Head of Global Mergers & Acquisitions at Acom Tokyo Securities has had extensive experience in Vietnam and says that despite the country’s reputation for corruption, the government has produced a very stable environment for businesses to thrive.
“Corruption….we see that in every country in the world. It’s a shame that Vietnam has been singled out, but when you look at the big picture I think the government are actually doing an incredible job to nurture the economy, and the statistics and plaudits reveal that fact. Fighting corruption is a slow process and the authorities are taking steps. It is being dealt with.”
Acom Tokyo Securities Ltd