Illustrative image (Photo: VNA)

According to delano.lu, Vietnam’s growth is currently progressing at a rate of 6.5%, driven by four factors: infrastructure spending, “healthy” macroeconomic policies, the development of a middle class that boosts demand, and the country’s attractiveness to foreign investors.

The first asset is its a young and educated population, and a population that is experiencing the emergence of a middle class, “a middle class that consumes”. In an economy where 72% of activity is driven by local consumption, this is an asset.

As a result, exports are moving upmarket, the news site said, adding that while Vietnam still exports a lot of agricultural products, the share of technology-related exports has increased fivefold since 2010 and now exceeds 30%. “Vietnam is becoming an export heavyweight with a steadily rising global market share that has reached 1.6% today,” according to delano.lu.

Russia’s Sputnik news agency said Vietnam is expected to become a new production hub of the world.

It cited Apple’s list of suppliers for 2021 fiscal year saying that the group now has 25 partners with factories in Vietnam, accounting for nearly 14% of the group's 190 suppliers as of the fourth quarter of 2021, up from the previous year.

Sputnik quoted Nguyen Thanh Yen, an administrator member of the Vietnam Microchip Community, as saying that it is understandable that Apple will move part or all of its production lines to Vietnam and increase the number of supply partners. It says, Vietnam has long been a place that has been noticed by electronics manufacturing and assembly companies, such as Nokia and Samsung.

According to Sputnik, an important factor attracting those manufacturers for nearly 20 years is the Vietnamese technical workforce which is gradually upgrading itself. More and more Vietnamese engineers have taken jobs that require high technical skills.

As soon as the COVID-19 pandemic was under control, the US ETF Trends website said, the Vietnamese market could bring about opportunities. ETF Trends, a leading source in Exchange Traded Funds news in the US, said that emerging markets like Vietnam can provide potential growth opportunities for investors who do their due diligence. Vietnam is an example of a country that is able to respond to mute economic effects of the pandemic.

Fitch Ratings forecasts Vietnam’s GPD to be at 7.9% this year and 6.5% next year and that Vietnam is a safe and effective destination for investors.