Despite turbulent international affairs, Vietnam is becoming a beacon in the region

The Brussels Times of Belgium has run an article highlighting that Vietnam – a development partner of the EU in the Indo-Pacific – is becoming a beacon in the region with the capacity to control inflation and maintain economic growth at a high level despite turbulent international affairs.

In the article entitled “The comprehensive cooperation over 30 years: for the prosperity and welfare of the EU and Vietnam’s citizens”, the author wrote that the EU-Vietnam cooperation, especially in trade and sustainable development, has created favourable conditions for citizens to improve the quality of life. It has also promoted dialogue in response to global challenges and crises.

Although the global economy is facing a potential global recession, international financial institutions have come out with strong forecasts for Vietnam’s economy, it said. The recent World Bank report published in August, forecast that Vietnam’s GDP growth would increase considerably from 2.6% in 2021 to 7.5% in 2022, while keeping inflation stable at 3.8%. The International Monetary Fund forecasts a GDP growth rate of 6.7% in 2023, significantly above the regional and global average.

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Most recently, credit rating agency Moody’s upgraded Vietnam’s rating from Ba3 to Ba2, with a stable outlook. Nikkei assessed that Vietnam’s COVID-19 recovery index ranked second in the world, up 12 places.

The article attributed Vietnam’s outstanding results to the Government’s flexible management policies such as low-interest rate support, credit growth maintenance, and the Socio-economic Recovery and Development Programme.

In addition, Vietnam’s early implementation of the strategy of living and working during the COVID-19 pandemic and the acceleration of COVID-19 vaccine coverage have restored socio-economic activities at home and abroad as well as stabilised workers’ income and citizens’ livelihood.

According to the article, Vietnam aims at creating a favourable investment environment for international businesses and corporations. Data from the Asian Development Bank (ADB) showed that infrastructure investment in both Vietnam’s public and private branches reached approximately 5.7% of GDP in recent years, the highest in Southeast Asia and ranked second in Asia after China.

Along with efforts to improve the quality of the economic environment, Vietnam is constantly improving its commitments to sustainable trade. To date, Vietnam has acceded to 25 International Labour Organisation (ILO) Labor Conventions, including 7/8 of the basic Conventions (Collective Bargaining, Prevention of Labor Discrimination, Child and Forced Labour. Notably, Vietnam is also one of the earliest countries to ratify two ILO instruments on Occupational Safety and Health, which are expected to be added to the group of basic Conventions.

European companies see Vietnam as a promising business investment centre with many quality and sustainable projects. Recent investment statistics show the upward trend in investment from some EU countries into Vietnam, such as the Netherlands (26%), Denmark (240%), Sweden (63%), the Republic of Ireland (235 %), and Belgium (284%).

According to the assessment of the EuroCharm office in Vietnam, the Business Climate Index (BCI) in the second quarter of 2022 reached 68.8 points, 7.6 points higher than in the fourth quarter of 2021. Many indicators improved, such as business owners’ satisfaction with Vietnam’s efforts to attract and maintain foreign direct investment (FDI). Up to 76% of the respondents expect their companies to increase FDI into Vietnam before the end of the third quarter.

Vietnam and the EU share many objectives, goals, and visions in maintaining multilateralism, promoting environmental protection, green and sustainable development, innovation and digital transformation, according to the article.

Promoting bilateral cooperation in diverse fields will support Vietnam in fulfilling its strategic and conditional goals to improve human livelihood, contributing to humanity’s progress and the world’s development, it said.

@ Vietnam Insider/ Vietnam News Agency