Financial Times: Vietnam's Economy Reaches a Turning Point
In a recent article published on July 9, the UK-based Financial Times highlighted that Vietnam’s long-awaited economic moment may have finally arrived. The country must seize the opportunity presented by the manufacturing boom to ensure its long-term development. Vietnam has emerged as a significant beneficiary of manufacturers’ efforts to reduce their reliance on China and mitigate geopolitical tensions.
Foreign direct investment (FDI) in Vietnam reached a decade-high of over $20 billion last year. Prominent companies such as Dell, Google, Microsoft, and Apple have already shifted parts of their supply chains to Vietnam in recent years and are actively exploring further opportunities in the country.
While Vietnam has experienced rapid export-led growth, lifting millions out of poverty, the article emphasizes that the country now stands at a crucial juncture. In the short term, Vietnam needs to strengthen its business environment to sustain the current investor attention. However, to achieve its ambitious goal of becoming a high-income economy by 2045, Vietnam must also leverage the manufacturing growth to diversify its economy.
The article acknowledges the justified excitement surrounding Vietnam as a business destination but emphasizes the need for concerted efforts to transform the current “de-risking” trend into sustained prosperity. Vietnam must undertake necessary measures to capitalize on this favorable economic climate and ensure long-term success.