(VOVworld) – Vietnam sparkles among emerging markets with a high and stable growth rate.
The ‘Financial Times’ ran a report featuring the select group of emerging markets including Hungary, the Czech Republic, Romania, and Poland.
It wrote that Vietnam is among a small group of developing markets to have delivered stronger economic growth last year above their average growth rates since 2010.
Market forecasts collated by Consensus Economics suggest the rate will rise again to 6.1% this year and 6.2% in 2016.
Earlier Vietnam had set a growth target of 6.2% for the whole of 2015. But Prime Minister Nguyen Tan Dung said in June that Vietnam could still reach a growth rate of 6.4%.
Recently, the Asian Development Bank has predicted that Vietnam’s economic growth for this year and next will be 6.5% and 6.6% respectively.
In an interview with the Financial Times, Dominic Scriven, chief executive of Dragon Capital, expressed his optimism, saying that Vietnam is likely to gain a growth rate of 6.5% this year and “close to 7%” in 2016.
According to the article, Vietnam’s achievements are attributed to low cost labor, and investors want to move their operations into other markets, mainly in Asia. Vietnam is one of the countries to benefit from China’s devaluation of its currency, Scriven said, adding that this would help Vietnam to import Chinese products at lower prices. Vietnam’s policies and reform measures, particularly the equitization process of state-owned enterprises, are also factors attracting more investors.