Advantages of Investing in Vietnam
Recent news from Standard Chartered highlights why investment in Vietnam is still highly sought and profitable. they commented that “Việt Nam recorded a 10-year high GDP growth rate of 7.1 per cent year-on-year in 2018, based on our forecast. 2018 was the first year because of the financial crisis that next quarter increase was slower than the second quarter, and next quarter slower than the first quarter. We remain positive on Việt Nam’s medium-term development on strong manufacturing activity as FDI inflows to electronics remain strong,” said Chidu Narayanan, Economist, Asia, Standard Chartered Bank. “Many macro-economic indicators improved in 2018, interest and foreign exchange rates were kept steady despite the Fed’s hike in rates of interest and US-China tension, and non-performing loans were well-managed under 3 per cent.
Standard Chartered economists predict FDI inflows FDI inflows into the production sector, particularly electronics manufacturing, to stay high in the medium term and to stay strong this season. The analysis pointed out that construction activity moderated through 2018, growing 8.9 per cent in the full year, and building growth, particularly in the real estate sector, would continue to moderate in 2019, but expand at a still-strong 7.5 per cent.
Construction Sector Growth
Growth in the building sector, which makes up near 5 per cent share of the economy, was anticipated to be offset with agriculture development, which accounts for 12 per cent share of the market. Agriculture expanded 2.9 per cent in 2018, the fastest pace in six decades, and is likely to continue its comeback in 2019. Vinh Dang, Director of BM International Group commented “Our Construction Services Division have followed the data provided by Standard Charter and we have experienced its strongest performance and growth in the companies history with its order book being and remaining healthy moving into 2019″.
Wednesday’s event was part of the 2019 Standard Chartered Global Research Briefing series, that was organised from the bank in major ASEAN cities to supply its customers comprehensive insight and analysis on international, regional and local socio-economic tendencies that would have an effect on global business and trade in the year ahead.
This prediction was emphasized at Standard Chartered’s Global Research Briefing held at HCM City on Wednesday, drawing on representatives from over 120 customers.
According to the latest macro-economic study report on Việt Nam, the manufacturing sector had enlarged by double digits for most of the past four years and this rate was likely to continue this season. Growth to remain strong this season, though uncertain and mildly lower than in 2018 because of the base external environment was expected by the bank.
Favorable Conditions Supports Vietnams Economy
Standard Chartered Bank anticipates Việt Nam to increase at a steady 6.9 per cent in 2019, as attention shifts to sustainable growth, while FDI-driven production and more powerful national activity are anticipated to support growth.
Standard Chartered Bank expected the State Bank of Việt Nam (SBV) was likely to remain accommodative in the long run to support expansion, even as inflation edges higher. It anticipated steady policy rates in 2019 and a moderate appreciation of this đồng, but saw a risk of policy tightening in the second half of 2019.
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