According to the international press last week, in 2023, Vietnam’s economy has been facing challenges both at home and abroad. However, there are still positive signs with the growth prospect of the economy. Meanwhile, Vietnam is also focusing on long-term economic growth to promote startups to choose Vietnam for setting up company, make investment and do business in Vietnam.
In 2023, the economy is returning to a long-term growth trajectory as the boom period of reopening after COVID-19 has ended. Vietnam aims to increase infrastructure spending to 7% of GDP this year to support economic growth, ensuring continued FDI inflows into the country for years to come.
Vietnam’s foreign direct investment is boosting the economy in the future. With the advantage of favorable business environment, stable political environment, sustainable macroeconomic development, abundant labor force, low cost, Vietnam is an ideal destination for tourists and foreign investors to establish company in Vietnam.
According to expert, the situation is very difficult globally, but so far Vietnam has been recovering and returning to the development trajectory. There will still be challenges from the risk of recession, global protectionism that reduces export demand, but there are still many positive aspects, and there are several drivers of growth from foreign investment, investment in human resources, and infrastructure. In addition, there is rapid growth in the recovery of consumer and business confidence. There has been a recovery in domestic demand.
According to Bloomberg, Vietnam is an attractive land for startups thanks to an abundance of qualified engineers but low labor costs, along with a fast-growing economy. Vietnam aims to turn Ho Chi Minh City into a “magnet” by 2030 to attract technology investment capital and aim for a digital economy.
Vietnam is now a manufacturing hub and an important part of the global supply chain. Therefore, it is important for businesses and economies to step up automation. Digitization of the value chain along with rapid improvement of labor productivity is one of the key drivers. Vietnam has great potential for rapid economic development and digital transformation across all sectors.
There are common understandings about the factors that help ensure Vietnam’s growth. These factors include accelerating structural and institutional reforms, deeply participating in new-generation trade agreements, enhancing foreign investment attraction, accelerating digital economic transformation, and deep integration into the global supply chain.