S&P: VN’s economy begins thriving
VGP – The Vietnamese economy started thriving when almost all other Asian countries were slow down, according to the Standard & Poor's (S&P).
|
|
|
Illustration photo |
Overseas shipment of domestic electronics yearly surged 33% over the last three years, accounting for 18-29% of total export turnover while garments and textiles only made up 20% of exports.
Generally, foreign investment doubled in the 2012-2014 period of which Japan and the Republic of Korea contributed 22% each; Singapore 16%; China (mainland) and Hong Kong (China) 13%; Taiwan (China) 7.5%.
Last year, trade turnover between Australia and Viet Nam rose 35% to AUD 8 billion (or US$5.7 billion).
According to S&P, the labor force of the 91-million population played an import role. Advanced equipment also contributed to high productivity.
The World Bank forecast that Viet Nam’s working-age population would increase until 2030 while Chinese ones was on the decline. Meanwhile, average wage of Vietnamese workers remained at US$2,000, equivalent to those of Chinese workers ten years ago.
Viet Nam also benefits from its “openness” with foreign investors in comparison with other low-wage peers.
However, S&P held that Viet Nam would encounter with challenges from rising USD prices and exchange rates as the country is pursuing stable exchange rate and low foreign reserve at around US$31 billion./.
By Kim Loan
