The economists also forecast that Viet Nam would rise as a potential emerging economy and open development space. When the world’s largest emerging economies such as Russia, Brazil and China falter, Viet Nam still maintains firm growth space.ANZ economist expert Victorino said that Viet Nam will become of new emerging markets with highest economic growth rates in 2016. Earlier, Bloomberg said in a recent article reported that with nearly 7% economic growth rate in 2015, Viet Nam will be among the fastest-growing markets in the world.
Rising domestic demand and foreign direct investment are helping the nation cope with global challenges such as stock sales and currency depreciation. The international experts as saying that amidst the global economic recession, domestic demand was the decisive factors. Vietnamese people were more upbeat about the future. According to Bloomberg surveys, Viet Nam’s economy is expected to expand 6.7% in 2016, the same pace as in 2015.
The State Bank of Viet Nam’s current efforts to make the exchange rate more flexible have also contributed to strengthening macro-economic stability and easing pressure on reserves, according to the article. Bloomberg also quoted economist Eugenia Victorino from Australia & New Zealand Banking Group Ltd. as saying that VietNam is positioned to have another stellar year in 2016. However, the long-term outlook will depend on political changes in the next 12 months, the economist said. He also forecasted that Viet Nam may become one of the fastest growing economies of the region and the world in 2016 and 2017.
The economist also added that Viet Nam’s rising trade deficit could derail its longterm growth, due to much faster import growth from consumption-related items such as automobiles. A series of famous retailers have flocked to Viet Nam, including Aeon Mall and Auchan. The competition at the retail market has become hottest than ever.
According to an analysis of Statista, a Germany-based online statistics portal, the market would value US$100 billion in 2016.Thus, big retailers from Japan, Thailand, Germany, and France hoped to penetrate the market. With a young population and increasing number of visitors to commercial centres, Viet Nam offers a potential cake for the retail sector.
Recently, the Economist Intelligence Unit (EIU) published a report on economic prospects for 2016, highlighting analysis and forecasts on automobile, retail, energy, finance, healthcare, and telecom. The Economist said that the liberalization of the retail sector has converted Viet Nam into an extremely attractive market. Despite economic deceleration in China, like India, growth rate of the retail sector in Viet Nam would outstrip other countries, especially e-commerce.
