A screenshot of the ariticle about Vietnamese economy on Germany international broadcaster Deutsche Welle's website. — VNA Photo
Germany international broadcaster Deutsche Welle (DW) recently ran an article on its website spotlighting several factors driving Việt Nam’s economic growth.
The country’s GDP is expected to expand 6.1 per cent by the end of 2024 and 6.5 per cent in the following year, the DW quoted the World Bank’s forecast.
Both projections are higher than what was predicted in April, with the increase in growth attributed to a rebound in manufacturing exports, tourism, and investment.
Việt Nam could have larger growth in 2025 than other emerging economies such as Thailand, Cambodia, Malaysia, Indonesia and the Philippines, according to the report.
The article described foreign direct investment (FDI) as a factor fuelling growth, elaborating the country, like many other Southeast Asian peers, relies heavily on FDI.
Between 2021 and 2023, FDI inflows into Việt Nam, Thailand, Indonesia, Malaysia, Singapore and the Philippines averaged some US$236 billion a year, the ASEAN Investment Report 2024 showed.
As Western investors are trying to diversify their supply chains amid geopolitical tensions, Southeast Asian countries are becoming a top choice for foreign investment from the US, Japan and the EU.
Việt Nam is one of the top choices for many firms’ China-plus-one policy due to geographical proximity and similar culture, the DW quoted Dr. Bích Trần, an adjunct fellow at the Centre for Strategic and International Studies, as saying.
Particularly, the US is Việt Nam’s second largest trading partner and largest export market. Last year, the two nations upgraded their diplomatic ties to a comprehensive strategic partnership for peace, cooperation and sustainable development, which, analysts said, has helped promoted economic benefits of both sides.
The article highlighted that huge investment from the US is key to economic opportunities for Việt Nam, which has become a key manufacturing location for the US tech giant Apple with investment of more than $15 billion over the past five years.
Furthermore, low labour costs and a young and large workforce, accounting for 58 per cent of the population of almost 100 million younger than 35 years old, have made Việt Nam an attractive bet for investment, it added. — VNS