Vietnam's economic outlook is bright

Fibre2fashion.com (India) assessed that Vietnam's economy is developing with positive signs. A survey by the US Fashion Industry Association showed that Vietnam scored higher than some Asian countries in producing high-value products.

Illustrative photo: Processing seafood for export. (Source: VNA)

Vietnam has a better competitive advantage because it is leading in the ability to quickly produce a variety of products thanks to investment in machinery and a skilled workforce. Vietnam's textile and garment exports increased compared to the same period in 2023.

The article identifies the reasons that motivate growth including rising global demand, strategic investments in technology and innovation, trade agreements and diversification of export markets. Global demand in key markets such as the US, Europe and Asia increased, following recovery from the Covid-19 pandemic.

According to fibre2fashion.com, Vietnamese textile and garment manufacturers are investing in automated machinery, digitalization, and sustainable practices to improve efficiency, productivity, and quality in the production process. At the same time, Vietnam continues to diversify its export markets beyond the US and the European Union (EU) by tapping new markets in Asia, Africa, and the Middle East. Strategic trade agreements also play an important role in export growth.

Similarly, financemiddleeast.com (United Arab Emirates) assessed that Vietnam continues to be an important “link” in the global supply chain. Southeast Asian economies, especially Vietnam, benefit from the shift in supply chains. Data from credit rating agency Fitch Ratings shows that Vietnam's manufacturing output will increase by 8.1% in 2024. This is evidence that Vietnam is becoming an important part of the global supply chain.

Meanwhile, Singaporean media asserted that there is reason to be optimistic about Vietnam's renewable energy sector. On December 26, eco-business.com published an article stating that the revised Electricity Law, which will take effect from 2024, has boosted optimism in Vietnam's renewable energy sector, and that Vietnam is taking a more cautious approach to managing the energy sector. The above newspaper quoted Mr. Mark Hutchinson, Southeast Asia Regional Director at the Global Wind Energy Council (GWEC), predicting that 2025 will be the year to complete the regulations and tariffs of the direct power purchase agreement, and develop all decrees and circulars under the Electricity Law.

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