Econ
A successful year of Vietnam in global economic integration
2017 marks a successful year of Vietnam’s economy integrating in global economy.
According to the Doing Business Report 2018 – Reforming to Create Jobs released by the World Bank, Vietnam was ranked 68th out of 190 economies, up 14 places compared to the previous year in 2017 (ranks 82 out of 190 economies).
Vietnam economy is among countries improving the most across three or more Doing Business topics in 2016/2017, implemented regulatory reforms making it easier to do business. Specifically, Vietnam has improved 8 out of 10 performance indicators with 39 reforms in recent 15 years. In the Doing Business Report 2017, Vietnam is placed at 82nd out of 190 economies with score of 63.83, up 9 places compared to 2016. This year Vietnam’s rank is in the fifth among ASEAN countries, after Singapore (2nd rank globally), Malaysia (24th), Thailand (26th), and Brunei (56th). The ranking of Vietnam is also higher than China as the second largest economy in the world only ranks at 78 out of 190 economies.
On the other hand, Vietnam has become the decisive factor of many free trade agreements, such as the Comprehensive and Progressive Trans Pacific Partnerships (CPTPP), or the Regional Comprehensive Economic Partnership (RCEP). Taking advantages from regional trade agreements, Vietnam has been a successful story in attracting foreign direct investment (FDI) with the hope to participate in the globalized trade and investment process.
A report on the updated Asia prospects 2017 by the Asian Development Bank (ADB) forecasted the Vietnam’s economic growth will be adjusted to 6.7% for 2017 and 2018, which is higher than the original estimation of 6.3% and 6.5% respectively. World Bank also has the same view with regard to the Vietnam’s economic growth, which is expected to be in range of 6.7% this year. In the mid term, economic growth is expected to be at 6.5%, while inflation is under control at low rate.
The spotlight of Vietnam’s economy in 2017 is the steady growth of the stock market. After the success of APEC 2017 with government’s commitment in removing barriers for investment, FDI in Vietnam has significantly increased and contributing to the growth of the stock market.
In the last few months of 2017, international financial institutions have given positive opinions with regard to the Vietnam’s stock market, as its stock market has doubled in size over the past year, fueled by state-owned enterprise (SOE) sales and listings, and a 47 percent gain in the VN Index. With this being said, Vietnam’s stock market capitalization is on track to surpass Poland and Turkey next year.
In banking system, the rate of non-performing loans (NPL) has reduced, while the equitization process of SOE is being pushed forward are contributing significantly to the growth of the economy.
The global wealth report conducted by Credit Suisse informed that the capitalization of Vietnam’s stock market has been in top of the world with regard to the growth rate of 61% in period 2016 – 2017. Total capitalization value of the stock market as of June reached over 110 billion USD. In 2015, VN-Index increased 40 points, and in 2016, this number has doubled to over 80 points. But in 11 months of 2017, VN-Index has increased 250 points, exceeding the record number of 900 points and is the highest points in the past 10 years.
Vietnam has been a decisive factor in many free trade agreements.
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On the other hand, Vietnam has become the decisive factor of many free trade agreements, such as the Comprehensive and Progressive Trans Pacific Partnerships (CPTPP), or the Regional Comprehensive Economic Partnership (RCEP). Taking advantages from regional trade agreements, Vietnam has been a successful story in attracting foreign direct investment (FDI) with the hope to participate in the globalized trade and investment process.
A report on the updated Asia prospects 2017 by the Asian Development Bank (ADB) forecasted the Vietnam’s economic growth will be adjusted to 6.7% for 2017 and 2018, which is higher than the original estimation of 6.3% and 6.5% respectively. World Bank also has the same view with regard to the Vietnam’s economic growth, which is expected to be in range of 6.7% this year. In the mid term, economic growth is expected to be at 6.5%, while inflation is under control at low rate.
The spotlight of Vietnam’s economy in 2017 is the steady growth of the stock market. After the success of APEC 2017 with government’s commitment in removing barriers for investment, FDI in Vietnam has significantly increased and contributing to the growth of the stock market.
In the last few months of 2017, international financial institutions have given positive opinions with regard to the Vietnam’s stock market, as its stock market has doubled in size over the past year, fueled by state-owned enterprise (SOE) sales and listings, and a 47 percent gain in the VN Index. With this being said, Vietnam’s stock market capitalization is on track to surpass Poland and Turkey next year.
In banking system, the rate of non-performing loans (NPL) has reduced, while the equitization process of SOE is being pushed forward are contributing significantly to the growth of the economy.
The global wealth report conducted by Credit Suisse informed that the capitalization of Vietnam’s stock market has been in top of the world with regard to the growth rate of 61% in period 2016 – 2017. Total capitalization value of the stock market as of June reached over 110 billion USD. In 2015, VN-Index increased 40 points, and in 2016, this number has doubled to over 80 points. But in 11 months of 2017, VN-Index has increased 250 points, exceeding the record number of 900 points and is the highest points in the past 10 years.
