Vietnam becomes a dynamic and indispensable part of the global economy.

VanEck analyzed Vietnam's transition from a "frontier market" to an "emerging market" and pointed out the reforms that have helped Vietnam grow dramatically.

Japan has nearly 5,000 valid FDI projects in Vietnam with a total registered investment capital of nearly 70 billion USD. (Photo: Tuan Anh/VNA)

According to a report by VanEck Investment Management Company (USA) on February 29, asiafundmanagers.com (Germany) said that Vietnam could be an attractive investment destination for investors looking for growth opportunities outside traditional emerging markets. In a recent in-depth market analysis report, VanEck analyzed Vietnam's transition from a "frontier market" to an "emerging market" and pointed out the reforms that have helped Vietnam grow remarkably. Mr. John Patrick Lee, Director of Products at VanEck, commented: "Vietnam's economic reforms have created a positive cycle: reforms boost exports, exports boost economic growth, which in turn boosts domestic demand. This trajectory has positioned Vietnam to become a dynamic and indispensable part of the global economy, with the domestic market continuing to show strong growth potential." Mr. Lee also pointed out that Vietnam's economic growth is driven by a young and growing population, with more than 60% of the population under 30 years old and a literacy rate of over 90%. This advantage is fueling domestic demand due to a growing middle class with increasing disposable income. Compared to other emerging markets, Vietnam's private consumption-to-GDP ratio is at an average level. Strong domestic demand helps Vietnam withstand external challenges, including protectionist policies from major trading partners such as the US and economic slowdowns from other countries such as China. When it comes to the stock market, VanEck believes that Vietnam is a new opportunity that investors should consider carefully. Mr. Lee emphasized: "Despite macro shocks including the COVID-19 pandemic and economic problems in China, Vietnam's stock market has outperformed the general benchmark of emerging markets since 2018." Mr. Lee sees huge opportunities from stocks in the financial, real estate and consumer staples sectors./.

(Vietnam News Agency/Vietnam+)

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