Commenting about Vietnam’s economy in the first eight months of the year, economist Vo Tri Thanh said Covid-19 has been like a typhoon that has caused severe destruction all over the world, including in Vietnam. However, there are positive signs about vaccine production and the slower spread of the virus.

Citing predictions by some international institutions that Vietnam may see GDP growth rates of 2-3 percent this year, Thanh said the figures are ‘extremely positive’ considering the current conditions. Thanh thinks that the economy will grow no more than 2-3 percent.

Can Van Luc, chief economist of BIDV, also said that in the context of the second Covid-19 outbreak, he is inclined toward the worst scenario with the predicted growth rate of 1.5-2 percent.

Regarding opportunities and challenges in the real estate market, Luc said opportunities always exist with dangers, but there are still three positive features in the real estate market – industrial real estate, housing real estate and logistics.

According to the General Statistics Office, in the first eight months of the year, the implemented investment capital sourced from the state budget reached VND250.5 trillion, an increase of 30.4 percent over the same period last year.

According to the General Statistics Office, in the first eight months of the year, the implemented investment capital sourced from the state budget reached VND250.5 trillion, an increase of 30.4 percent over the same period last year.

As the government is stepping up public investment as a solution to help the economy overcome difficulties, real estate will be one of the business fields to enjoy the biggest benefits.

“During and after Covid-19, investors’ behaviors changed a lot, so the investment structure will change to adapt to the new circumstances,” Luc commented.

Sharing the same view, Nguyen Duc Huong, former chair of LienViet Post Bank, compared Covid-19 to a revolution.

“Revolution here means renovation. Covid-19 has made Vietnam more trustworthy in the eyes of the international community and many foreign investors are now looking to Vietnam,” he said, adding that many friends of his who have made investments abroad now want to come back to Vietnam.

Luring ‘eagles’

‘Eagle’ is the word used by some Vietnamese economists to talk about multinationals.

Dang Van Quang, director of Jll Vietnam, commented that Vietnam now has a high number of FDI projects, and Vietnam is in an advantageous position to receive the new FDI wave.

“We can see the high interest by investors, but the number of completed deals is still not high. We hope when Covid-19 is controlled, the situation will be better,” Quang said.

Quang went on to say that there are barriers from laws, law enforcement, and the legal documents that guide the implementation of laws.

“The Indian government has spent $30 billion to support enterprises to invest in the country. If Vietnam cannot act quickly, it will miss the opportunity to lure investors,” he said. “The Prime Minister said if Vietnam cannot be prompt to prepare nests for eagles, they will head for other destinations." 

Duy Anh

Vietnam urged to improve infrastructure to attract more FDI

Vietnam needed to improve its infrastructure in order to attract more FDI, a webinar heard on Monday.

Vietnam opens seaports to receive new FDI 'wave'

Development of coastal industrial zones appears to be the right move to take advantage of incoming FDI.