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Vietnam Insider has highlighted the strengths of Vietnam’s domestic stock market, revealing significant opportunities for local investors as foreign capital increasingly flows into the country.
Amid global economic turbulence, foreign investors see Vietnam as an attractive investment destination. While many regions face conflicts, Vietnam remains a peaceful nation and a key export hub.
The global economy is currently unstable, with major markets engaged in intense economic competition. In the United States, upcoming elections add further uncertainty. Regardless of the election outcome, it is expected that the US will continue to strengthen economic ties with Vietnam, presenting an advantage over other markets. Vietnam’s numerous trade agreements with the US and Europe provide a solid foundation for expanding investment and market reach.
These trade agreements have been crucial in sustaining Vietnam’s recent growth, and the country is poised to continue benefiting from shifts in global investment patterns. Since the beginning of the year, Vietnam has seen a surge in exports and robust foreign direct investment. Vietnam’s stable political and economic environment, coupled with balanced internal and external affairs, has shielded its economy from global downturns.
Despite the opportunities presented by shifting capital flows, the challenge for investors lies in their ability to capitalize on these opportunities. One limitation recently observed in the Vietnamese economy is lower-than-expected credit growth, indicating constrained domestic expansion.
Investors believe that domestic businesses and investors need to invest with greater confidence. The current global landscape is favorable for Vietnam, yet some investors remain hesitant, resulting in reduced investment and slower credit growth. To fully leverage this potential, the domestic market requires further development.
Sophie Dao, Senior Partner at Global Business Services LLC (GBS), notes that some major foreign investors have yet to enter Vietnam, raising concerns about the readiness of Vietnamese businesses. A critical issue is the lack of high-tech human resources, which needs to be addressed promptly. Vietnam must invest in workforce training to prepare for the arrival of foreign enterprises.
Both the public and private sectors must be prepared to welcome new investment as geopolitical shifts bring about significant changes. Educational institutions should focus on training high-tech personnel, while regulatory bodies need to implement policies that encourage, promote, and allocate budgets for this purpose.
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Source: Vietnam Insider