Learn from Vietnam, why does it become a country that gets attention from all over the world.
If there is an opportunity to follow the news of the ASEAN economy regularly, many people might have questions that why is Vietnam having a bright economy and is likely to have a better future than other ASEAN countries amid COVID-19 outbreak? Also, it has become a global investment target. It is not difficult to answer if you know the factors that make Vietnam is one of the countries where the economy is recovering and expanding continuously.
The ability to control the COVID-19 outbreak
Vietnam is able to control COVID-19 outbreak rapidly since the vaccination program has not started and even though it is one of the slowest country that could get vaccinated. Otherwise, there is categorical and strict public health measures, so they could control the number of infected people efficiently. The number of infected and fatalities in Vietnam is very small comparing to other Asian countries and Vietnam could resume to their normal economic activities quickly.
Government economic policy
Vietnam has a policy to support the manufacturing industry especially electronic products and medical products according to the needs of consumers during the epidemic. Besides, the government tries to push an environment that is conducive to foreign investment business and this includes low labor costs in wages, electricity, and tax rates for some industries. In addition, many bilateral and multilateral free trade agreements signed by Vietnam are causing many multinational companies come to Vietnam and build production bases and plan to expand business within Vietnam this year.
Business development in service, technology, education and logistics
Apart from manufacturing sector, Vietnam is also concerned with economic infrastructure in order to become more of a service business by accelerating and supporting startups with the goal of being the economic and technological center of ASEAN. All these things require quality population that makes the government do not forget to focus on the development of education and the students compete for prestigious institutions and study additional English tutoring to study abroad. In terms of logistics systems, the government focuses on economic infrastructure development especially in special economic zones to facilitate transportation and increase operational efficiency. Moreover, Vietnam revives the construction of a special railway between cities resulting in faster domestic and international shipping and it has reduced costs.
Trends in the domestic market growth and the purchasing power of the population are expected to grow rapidly
Since Vietnam has large number of populations by most young generation is in labor force, the population growth rate is estimated to be the highest growth among ASEAN countries in the next 5-6 years and it makes the domestic market a high potential for highly growing. Besides, it boosts rapid growth of the middle class in Vietnam which means better quality of life and has potential to spend money more. The development of products or services to meet the needs of the people is also increasing. Recently, more than half of them are purchasing products in the consumer group and most likely will switch to spending on unnecessary or other luxury goods.
Although Vietnam still has many aspects in need of improvement, such as the shortage of highly skilled workers, infrastructure and less state enterprises, from the mentioned success factors, Vietnam is definitely the one to focus and it is a country that has the potential to grow and develop. It is interesting and good opportunity to accumulate funds in Principal Vietnam Equity Fund (PRINCIPAL VNEQ) that has policy about investing in stocks listed on the Vietnam Stock Exchange with good growth potential in the future. The fund is managed by a Thai investment management team and a Vietnamese analyst. Read more details at https://www.principal.th/en/principal/VNEQ-A
Disclaimers:
Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest.
PRINCIPAL VNEQ is concentrated in Vietnam; therefore, investors should consider the diversification of their overall investment portfolios.
The fund is invested in foreign countries, investors might lose or gain profit from exchange rate /or receive a refund lower than the initial investment/ the Fund might use derivatives as a tool for hedging foreign exchange risk of funds but depends on the discretion of Fund Manager.
Previous performance could not guarantee for future performance.
For more information:
Website: https://www.principal.th/en or Tel: 02-686-9595
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LINE: https://lin.ee/C6KFF6E หรือ @principalthailand
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Ref: https://www.prachachat.net/world-news/news-639416, https://wealthmeup.com/20-05-13-vietnam/, www.moneybuffalo.in.th/business-economy/นักลงทุน-สนใจ-เวียดนาม, https://brandinside.asia/vietnam-economy-is-the-best-of-southeast-asian…, https://themomentum.co/economiccrunch-vietnam-economy/, https://www.prachachat.net/columns/news-527369
