The Hanoitimes - According to Grant Thornton Vietnam, in the "Vietnam`s Private Investment - Growth Expectations" report, Vietnam is becoming a potential market for consumer products and retails with high and stable economic growth.
In 2018, the level of confidence in investment prospects in Vietnam increased significantly compared to 2017, noted Grant Thornton.
Vietnam has witnessed strong growth in 2017, driven by buoyant private consumption and foreign direct investment (FDI). These are the elements that are expected to continue to underpin growth in the second half, according to the Asian Development Bank (ADB).
Japanese retail giant Aeon Mall is investing heavily in Vietnam
The improvement, associated with several propitious changes in the investment laws, has made Vietnam one of the most attractive investment destinations in the world. Vietnam’s success can be largely attributed to the state’s commitment to creating an attractive business environment for both domestic and international companies.
Building on the country’s solid foundations, the government has introduced a number of regulatory changes to help increase both foreign direct investment (FDI) and foreign portfolio investment. This pro-business attitude has also stimulated growth in the private sector, driving local business and improving competition.
By leveraging the country’s political stability, sustainable economy and high quality investment opportunities, Vietnam has become an attractive proposition to investors around the world.
Under the management of the State Bank of Vietnam (SBV), the Vietnamese financial system has continued to thrive. The government’s commitment to creating a favourable business environment has seen foreign investment grow significantly in the past decade.
The introduction of new regulatory frameworks has been key to attracting these high levels of foreign investment, and has helped control inflation, motivate economic growth and stabilise the interest rate domestically.
By adopting active and flexible fiscal policies, the government has turned Vietnam into a business hub. Some changes involve a daily adjusted rate, providing tax breaks to specific sectors, reducing corporate tax and providing a number of support packages to both foreign and local businesses.
These packages have primarily focused on growth and attracting investment, aiding the development of social housing and hi-tech agriculture while also providing support to the country’s rising number of start-ups.
To this end, the Vietnamese Government is carrying out a comprehensive renovation of the regulatory system. By simplifying procedures, enhancing national competitiveness and improving transparency, the government has created an environment geared towards international business.
With a view to encouraging further growth, the government has sought to clarify its position within the market. These announcements have helped standardise market valuations and dull any potential shocks to the Vietnamese economy.
The Government has also publicly clarified which industries it intends to maintain a controlling stake in, and which enterprises it will pull funding from in the near future. This clarification has reinforced the country’s stock market, giving investors a clearer understanding of the market and strengthening the position of state-owned businesses.
In addition, the government has sped up the reorganisation of Vietnam’s banking sector, restructuring the debts held by joint stock commercial banks and consolidating or merging unprofitable banks in order to increase capital capacity. This has helped to standardise state-owned enterprises and has allowed foreign investors to buy shares in both public and private companies.