The confidence of foreign investors in Vietnam

In 2011, Vietnam's economy should grow by 7%: these are the forecasts of the Vietnamese Minister for Planning and Investment, Cao Viet Sinh. The growth and development of the Asian country will continue in the wake of last year, in which an increase in GDP of 6.7% was recorded. Why is it a fact that foreign investors in Vietnam look positively on?

The Vietnamese Government had initially foreseen an increase in the Gross Domestic Product of around 7.5%, but the inflation problem changed the Government's plans, which therefore decided not to push too much on the growth targets but to concentrate on containing the high inflation. The double-digit rate on the rise in prices, which stood at 12.3% last month, worries the Government, which has therefore decided to undertake fiscal and monetary measures (including the devaluation of the Dong) aimed above all at not discouraging foreign investors: thanks to the adoption of these policies, according to data from HSBC economists, the consumer price index should drop by 2011 and reach an average level of around 9.9%. Hanoi intends to further strengthen the presence of Foreign Direct Investments, whose role proves to be fundamental in the balance and development of the Vietnamese economy, and has ensured that the decline in domestic demand will be compensated precisely by foreign capital and that investor confidence will not nicked.

In addition to the inflation problem, according to some economists, in order to continue its extraordinary growth process experienced up to now and remain competitive, the Asian country should reform the structure of state-owned companies, judged inefficient, modernize the system of education, fight corruption effectively and continue the difficult challenge that must lead to a better redistribution of wealth. To ensure greater equality and encourage even more the emergence of the middle class, the Government must continue the fight against poverty, the results of which have been truly satisfactory in recent years.

Although there is still a long way to go, foreign investors' confidence in Vietnam has not diminished: with a growth in industrial production in 2010 which registered +13.8%, an average growth in GDP (from 2004 to 2008) of 7.6%, a population of almost 90 million people and a strategic geographical position, Vietnam today represents one of the most interesting markets in the international scenario in which to invest. A recent analysis by Citigroup identifies Vietnam (together with other countries including Indonesia, China and India) as one of the countries with the highest potential growth rate of the twenty-first century.

The country can count on a young and low-wage workforce, strong political and social stability, a policy of openness to foreign capital and the consolidation of the formation of a middle class with a strong propensity to consume. Vietnam above all, which has managed to simplify its regulatory framework, needs capital, technology and know how foreigner.

The rapid processes of internationalization and liberalization of services have allowed a gradual and growing integration in the globalized world. Furthermore, in 1995 Vietnam joined the ASEAN Free Trade Area (which also includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippine, Singapore and Thailand) created to increase trade, promote cooperation and mutual assistance among Member States and accelerate the economic growth and stability of the region. There are several opportunities on the Vietnamese market, from sourcing, infrastructure, mechanics, the agro-industrial sector: the Italian companies that have invested here are still few in relation to the opportunities offered.

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