Vietnam and China economies will continue to grow fast in 2008 and investments in these two countries will bring returns of 20 per cent this year, Citigroup forecast.
Despite the slowdown of the U.S. economy, experts are still upbeat about Vietnam and China economies, which will be among the fastest growing economies in the world.
Vietnam will have GDP growth rate of 8.1 per cent in 2008, lower than the rate forecast earlier by international organizations, while China will have growth of 10.5 per cent, both much higher than the average growth of 5 per cent in Asia.
Vietnam will see strong growth in infrastructure, tourism, information technology and agriculture, of which the country is expected to receive about US$7 billion in infrastructure developments this year.
"What is also amazing is that there is tremendous amount of opportunity in the agricultural sector,” said Faisal Ameen, managing director and country head of Citigroup.
One country is considered to be fantastic to get a 2 per cent or 3 per cent growth in agriculture, but Vietnam actually sees 6 per cent-7 per cent growth.
“It is currently the world's largest exporter of coffee cashews, and second largest exporter of coffee, rice and peppercorn. So it is a huge producer of commodities, and as the global population increases and the agricultural land size decreases, commodity prices are going to rise," he said.
Vietnam continues to be attractive destination for foreign investors thanks to its low cost, which is relatively lower than China.
Vietnam can attract foreign direct investment (FDI) at least US$15 billion this year, and China will see FDI of US$90 billion, Citigroup forecast.
For China, the best returns include food, luxury goods, manufacturing, the energy sector, and environment-related investments. (Pioneer, CNA)
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