Vietnam maintaining export competitiveness, FDI attraction: Citi

10 Mar '23

2 min read

Pic: Shutterstock

The Vietnamese economy continues to maintain its export competitiveness and remains attractive as a foreign direct investment (FDI) destination as economic pressure has reduced compared to previous expectations, according to New York City-headquartered Citigroup Inc. Vietnam’s market share in global trade is expected to rise in the medium term, Citi Research said.

Citi Vietnam recently released its Asia-Pacific economic data update for this year at the Vietnam Economic Outlook 2023 event it hosted in Hanoi.

“Vietnam’s share of global trade is less than 2 per cent, but it has doubled in the past 10 years. We think this will continue to rise as multinational company supply chain diversification grows and geopolitical tensions continue,” Helmi Arman, economist at Citi for Indonesia and Vietnam, was quoted as saying by a news agency.

"Vietnam can still rely on its export-oriented growth model for years to come. But as urbanisation continues to rise and per-capita GDP climbs beyond $4,000, FDI inflows could become more diversified and domestically oriented," added Helmi.

Domestic consumption is also expected to accelerate local economic growth in the coming years, the outlook document noted.

Real estate and some exports sectors have been facing slowdowns since the fourth quarter of 2022, but the long-term prospects for Vietnam are unmistakably strong, said Vietnam Citi country officer Ramachandran A S, adding that he believes the country has a competitive advantage in attracting FDI.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...