October 20, 2015.
Vietnam is targeting higher economic growth rates over the next five years. Its high hopes are driven by its successful exports and increase in foreign investment, as it expands in the global market. Vietnam has had an average annual growth rate of about 5.9% for the past five years, but they are looking to expand even more. In 2012, the country’s growth rate reached a recent low of 5.25%, following an expansion of more than 7% in the previous years. This was mainly caused by weak global demand and an excess of nonperforming loans in local banks. Despite this setback, Vietnam plans to expand even more into the global economy. The country is targeting an economic growth rate between 6.5% and 7.0% each year during the 2016 – 2020 period, announced by Prime Minister Nguyen Tan Dung at the opening of a National Assembly meeting in October.
Louie Nguyen, CFA is the CIO of San Diego-based Soledad Investment Management. Soledad invests qualified clients’ assets in markets around the world, including Vietnam.