Vietnam’s bright economic outlook for 2021 – Economic Growth Surges to Above 7% as Exports Climb Description video: Vietnam’s growth accelerated in the third quarter to more than 7 percent, with the economy on track to remain among the world’s […]
Vietnam’s bright economic outlook for 2021 – Economic Growth Surges to Above 7% as Exports Climb
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Experts point to bright prospects for Vietnam’s economy
Vietnam’s economic outlook has “huge potential,” says Calvin Tai of UBS Global Wealth Management.
«We highly appreciate the future of the Vietnamese market. The country’s economy has great potential. Its GDP is growing at a faster pace than neighbors», – he said.
Vietnam ended up one of the highest performing economies in the Asian region in 2020 year and one of the few countries that managed to record growth at the end of last year, despite all the pandemic restrictions and consequences. In 2020, Vietnam’s economy grew by 2.9%.
In recent years, the country has been seen as an alternative manufacturing hub for companies looking to relocate their businesses from China to avoid becoming a bargaining chip in the trade conflict between Beijing and Washington..
The Vietnamese stock market is also showing strong growth and is on track to outperform the Philippine exchanges in terms of market capitalization.. Calvin Tai suggests that this could happen as early as the middle of this year.
Vietnam indices started very brightly in 2021, but later sank sharply as concerns about new outbreaks of Covid-19 infection put pressure on investor sentiment.
However, Tai admitted that despite the positive outlook, the risk of investing in Vietnam still remains.
«The liquidity problem is still there», – he noted.
In addition, Tai warned that the Vietnamese authorities are known to use foreign exchange controls as a strategy for monetary policy..
«Authorities may drastically devalue the Vietnamese dong just to try to stimulate the local economy», – expert thinks.
Late last year, the U.S. Treasury Department named Vietnam – currency manipulator.
«Yes, there is a risk, but if you distribute investments with a cool head, you can stay in a good profit. Vietnam has been one of the most efficient markets in the past three to five years», – added Tai.