Vietnam – an enticing destination for foreign investors

Vietnam is an attractive destination for foreign investors thanks to its high, stable growth, large domestic market and young, well-educated human resources, said Paulo Medas, head of the International Monetary Fund (IMF) team to Vietnam at the Annual Meetings of the IMF and the World Bank Group (WB) held recently in the US.

According to Medas, despite rising geopolitical instability on the globe, Vietnam’s economy experienced a growth rate of 5.66% in the first quarter of this year. Exports continue to see an upward trend, facilitating overall growth until the end of this year.

He forecasted that Vietnam’s economic growth is predicted to expand by nearly 6% this year thanks to the recovery of domestic demand and the Government’s support fiscal policies. However, Vietnam needs to have a flexible fiscal policy to cope with risks and ensure substantial growth, he noted.

The expert said that the country continues to receive a large volume of foreign direct investment amidst the shifting of supply chains to Asia and Vietnam is one of the investment destinations for foreign investors. 

Nevertheless, to remain its attractiveness, Vietnam should continue to improve its business environment, streamline administrative procedures, develop infrastructure, especially for green energy development, and promote innovation, he added.