November 15, 2015.
Among some other emerging economies, Vietnam is quickly becoming one of the few who can maintain their growth with some great economic achievements, as rated by the Financial Times. It has had some strong import/export activities while also diversifying their export products across goods such as textiles, oil, seafood, and mobile phones/computers. This diversification of their exports has reinforced the economy in the face of expected slowdown in other economies like China and the US. Thanks to a stable dong, Vietnam can protect this growth in imports and exports while other nearby currencies have weakened like in Thailand. By 2017, Vietnam is expected to continue this trend and reach a 7 percent GDP growth rate. Vietnam has already achieved two-digit export growth rates thanks to the help of free trade agreements (FTAs) with markets like the US, EU, and Japan. There is also the potential for a 7.5 percent GDP growth rate which would be higher than China by 1 percent.
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.