The EU’s development partner in the Indo-Pacific, Vietnam, is emerging as a regional leader with the ability to control inflation and maintain strong economic growth amid tumultuous world affairs, according to a recent story in The Brussels Times of Belgium.
Belgium (VNA) – The EU’s development partner in the Indo-Pacific, Vietnam, is emerging as a regional leader with the ability to control inflation and maintain strong economic growth amid tumultuous world affairs, according to a recent story in The Brussels Times of Belgium.
According to the author of the essay “The Comprehensive Collaboration over 30 Years: For the Prosperity and Welfare of the EU and Vietnam’s Citizens,” the cooperation between the two countries, particularly in commerce and sustainable development, has made it possible for people to live better lives. In response to crises and issues throughout the world, it has also encouraged discourse.
International financial institutions have made confident predictions for Vietnam’s economy, despite the possibility of a worldwide recession, it stated. According to a recent World Bank estimate released in August, Vietnam’s GDP growth would significantly expand from 2.6% in 2021 to 7.5% in 2022, while inflation would remain constant at 3.8%. In 2023, the GDP is expected to increase at a 6.7% annual pace, which is much higher than the regional and worldwide averages.
Vietnam’s credit rating was most recently raised by Moody’s from Ba3 to Ba2, with a stable outlook. Vietnam’s COVID-19 recovery index was rated second in the world by Nikkei, moving up 12 spots.
The article credited Vietnam’s exceptional outcomes to the Government’s adaptable management strategies, including support for low-interest rates, preservation of credit expansion, and the Socio-economic Recovery and Development Programme.
Vietnam’s early adoption of the “live and work throughout the COVID-19 pandemic” approach and the acceleration of the COVID-19 vaccination coverage have also restored socio-economic activities at home and abroad, stabilized worker wages, and improved people’s quality of life.
The report claims that Vietnam wants to make it easier for foreign organizations and enterprises to invest there. According to data from the Asian Development Bank (ADB), infrastructure spending in Vietnam’s governmental and commercial sectors recently reached 5.7% of GDP, the highest level in Southeast Asia and second in Asia only to China.
Vietnam is continually enhancing its commitments to sustainable trade in addition to measures to enhance the quality of the economic environment. Vietnam has ratified 25 ILO labor conventions as of this writing, including 7/8 of the fundamental conventions (child labor, forced labor, and the prevention of labor discrimination). Vietnam is notable for being among the first nations to ratify two ILO treaties on occupational safety and health, which will be included in the group of fundamental Conventions.
Vietnam is viewed by European businesses as a viable location for investments in the form of several high-quality and sustainable projects. According to recent investment figures, investments from various EU nations—including the Netherlands (26%), Denmark (240%), Sweden (63%), the Republic of Ireland (235%), and Belgium (284%)—are increasing in Vietnam.
The Business Climate Index (BCI) in the second quarter of 2022 was 68.8 points, up 7.6 points from the fourth quarter of 2021, according to the evaluation of the EuroCharm office in Vietnam. Numerous metrics increased, including the level of satisfaction among company owners with Vietnam’s efforts to maintain and attract foreign direct investment (FDI). Before the conclusion of the third quarter, up to 76% of respondents anticipate their firms would boost FDI into Vietnam.
According to the post, Vietnam and the EU have a lot in common with one another when it comes to upholding multilateralism, fostering environmental protection, green and sustainable development, innovation, and digital transformation.
Promoting bilateral cooperation in a variety of areas will help Vietnam achieve its conditional and strategic goals to better human life, and advance mankind and global development, it added.