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Vietnam’s Economic Outlook and Growth Strategies

Edition AIVietnam's Economic Outlook and Growth Strategies

Vietnam’s Economic Outlook and Growth Strategies

Vietnam is focused on enhancing corporate governance, expanding infrastructure, and creating a competitive business environment to harness its demographic advantages and geopolitical opportunities for dynamic growth. Yeu Huan Lai, Joint Head of Asian Equity at Nikko AM, envisions a future of optimistic growth potential.

Current Challenges and Reforms

Despite concerns over potential US tariffs on Vietnamese exports, the domestic economy faces challenges such as rising interest rates and slow consumption growth. Real estate in Ho Chi Minh City shows signs of recovery, but overall transaction volume remains limited. However, under new leadership, Vietnam is pursuing a comprehensive growth agenda.

Policy and Infrastructure Priorities

Efforts to streamline bureaucracy, consolidate administrative units, and define clear responsibilities and performance metrics are underway. With low debt levels, Vietnam has financial flexibility to invest in infrastructure projects like high-speed rail connections and urban transport improvements.

Short-Term Growth Drivers

The real estate sector continues to be a key economic driver, with improvements in financing and regulatory frameworks. This sector’s recovery could lay the foundation for broader economic expansion.

Trade Dynamics and Financial Reforms

Expectations suggest that US tariffs on Vietnam may be less severe than those on China, potentially positioning Vietnam as a favorable destination for supply chain diversification. While consumer activity lags, the financial sector is undergoing comprehensive reforms, albeit at a gradual pace.

About Nikko Asset Management

Nikko AM, with $246.1 billion in assets under management, is a prominent Asian asset manager offering active fund management across various asset classes. The company’s diversified strategies and global presence aim to deliver consistent performance and innovative solutions to clients.


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