Vietnam Still Attractive to Investors - French Economic Analyst
Martin Hutchinson, an international market and economic analyst, said that investors should not underestimate Vietnam’s advantages and that the market remains attractive despite the global economic slowdown.
Vietnam’s stock market has lost 61 per cent of its value, compared to its peak period more than a year ago, which makes investors unsure about the advantages of investing in the country, Hutchinson wrote in an article on French newspaper Le Monde July 26.
The national economy, however, is not as gloomy as investors thought, according to the analyst.
The country's recent petrol price hike of 31 per cent is predicted to drive inflation up by 27 per cent by the end of the year. He quoted statistics, saying that Vietnam's trade deficit made up 30 per cent of its GDP in the first half, but foreign investment accounted for 65 per cent of the GDP.
Even though the government has had to slash down public spending and raise bank interest rates, so there are some grounds for optimism rather than pessimism.
The situation in Vietnam is not as gloomy as in Eastern European countries, he said, noting that the nation has 85 million consumers and all its economic sectors have high competitive capabilities.
The high inflows of foreign investment have helped Vietnam create more jobs over the past years, Hutchinson said. The state spending has been generally safe.
The central bank is trying to keep the exchange rate stable to avoid creating a “bubble” phenomenon in the property market. While foreign investors still find that the production costs in Vietnam are low.
Vietnamese
