Practical reform and better business environment
The World Bank Group’s annual Doing Business Report announced that Viet Nam ranked 68th out of 190 economies, jumping 14 notches against 2016.
The report assessed that Viet Nam and Indonesia were among the two countries which have conducted numerous innovations over the last 15 years. Each implemented 39 reforms. So far, businesses in HCMC have spent 22 days and 6.5% of their incomes for business registration, down from 61 days and 31.9% of income in 2003.
The Vietnamese business environment was hailed by the international community following Government’s reform policies.
The National of the United Arab Emirates ran a report on business and investment opportunities in Viet Nam, saying that “Viet Nam has become a center force of various FTAs, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Regional Comprehensive Economic Partnership (RCEP). Benefited from abundant advantages from regional FTAs, Viet Nam has succeeded in attracting foreign companies to do businesses that wanted to engage in the process of free trade and investment.”
The Asian Development Bank (ADB) revised Việt Nam’s growth prospect upward to 6.7% in both 2017 and 2018 compared with earlier forecasts of 6.3% and 6.5%, respectively.
The WB also forecast that Viet Nam would attain a 6.7% economic growth in 2017. In the medium term, the growth rate would be stable at about 6.5% and inflation rate would be maintained at low level.
Promising stock market
Stable and sustainable stock market was another spotlight in the Vietnamese economy in 2017. Following the successful hosting of APEC 2017 and Government’s commitments to business hindrance removal, the foreign capital inflow rebounded sharply in the stock market, substantially supporting the market.
In the final months, internationally financial institutions made positive assessment on the Vietnamese stock market, making it one of the leading ones in Asia and the world.
Bloomberg published an article of Andy Mukherjee, saying that Viet Nam would outstrip the Philippines in stock market boom.
Switzerland-based Credit Suisse bank estimated that there are now 12 stocks with volumes of US$3 million a day where foreign investment limits haven't been reached.
Viet Nam is leading the world regarding market capitalization growth in the period 2016-2017 at the rate of 61 per cent, according to Credit Suisse's Global Wealth Report 2017 just released.
No longer ‘sidelines market’
From the figure of US$ 100 billion in 2007, by late 2017, Viet Nam’s export turnover exceeded US$ 400 billion. Trade surplus reached US$ 3 billion, the record high ever.
The country has over 200 trade partners including 29 export markets and 23 import markets that had over US$ 1 billion each in November 2017.
A large number of economic newspapers assessed that Viet Nam has joined the supply chains of electronic equipment and smart phone devices in Asia. Viet Nam’s key export lines are no longer garments, textiles, footwear, aquaculture, coffee or cashew but smart phone spare parts. The overseas shipment of the commodity surged sharply by 29% to US$ 36.5 billion in 2017. Viet Nam no longer serves as the ‘margin market.’