China’s Newsweek ran an article recently highlighting the positive outlook for Vietnam’s economy.

Vietnam not only successfully contained the pandemic but also posted a GDP
growth of 2.91%, with the International Monetary Fund (IMF) saying
it was among countries with the best economic achievements.

The article reviewed the country’s economic development since it embarked on its “Doi moi” (Reform) cause, most notably in 2020 when the COVID-19 pandemic spread globally and economies shrank deeply.

Vietnam not only successfully contained the pandemic but also posted a GDP growth of 2.91%, with the International Monetary Fund (IMF) saying it was among countries with the best economic achievements.

The article also cited a World Bank (WB) forecast that Vietnam’s economy would grow 6.5% annually from 2021.

The 13th National Congress of the Communist Party of Vietnam (CPV), meanwhile, set forth strategic targets for the short, mid, and long terms, specifically to 2025, 2030, and 2045, with a focus on foreign investment attraction, scientific-technological reform, and the transformation of the digital economy model.

Over the next two decades, Vietnam will concentrate on industrial modernisation and scientific-technological reform, while its FDI policy will shift the focus from quantity to quality, with attention paid to high-tech and high value-added projects.

Vietnam has therefore begun to conduct national digital transformation and set a task of developing digital economy, digital society and digital Government while closely combining digital Government with administrative reform, the article said, adding that transparency is considered a gauge of the efficiency of service and operational capacity of all-level agencies.

The article also quoted Professor Kenichi Ohno from Japan’s National Graduate Institute for Policy Studies (GRIPS), who is the Japanese Government’s advisor in its cooperation with Vietnam, as saying that although Vietnam’s economy has posted rapid growth over the past years, there remain limitations in policy making.

He suggested Vietnam pay more heed to improving factors regarding production capacity such as corporate administration, productivity at factories, worker skills, and administrative efficiency.

Vietnam would become the biggest investment magnet in Southeast Asia once its investment and business climate is further improved, he said.