In the heart of Southeast Asia, Vietnam is witnessing an economic renaissance and an agro-industrial state, drawing global attention for its robust growth. With a 5% GDP growth rate in 2023, Vietnam stands in the group of fastest-growing economies and regions in the world1.
Key drivers of Vietnam's economic prowess include its role as a regional hub for technology and innovation, particularly in the areas of electronics and textiles. The financial sector, marked by a robust banking system, plays a crucial role in supporting economic infrastructure. Notably, Nvidia's recent commitment to expand ties with Vietnam signals a significant leap forward. The global technology giant's pledge to support AI development in the country underscores Vietnam's rising significance in the tech landscape.
The global economy plays a crucial role in shaping Vietnam's growth trajectory. The country actively participates in international trade agreements, being a member of ASEAN and WTO, fostering economic integration and expanding its export-oriented sectors like electronics and textiles, thrives on global demand, contributing substantially to Vietnam's economic success. At present Vietnam has over 90 bilateral trade agreements and nearly 60 bilateral investment promotion and protection agreements2.
Simultaneously, the local economy remains a cornerstone of Vietnam's growth. Small and medium-sized enterprises (SMEs) and local businesses play a vital role in driving innovation, creating jobs, and contributing to community development.
MarketVectorTM Vietnam Local Index (MVVNML), which covers the largest and most liquid local Vietnamese companies was up almost 13% in YoY.
MarketVectorTM Vietnam Local Index
1/2/2023-1/2/2024
Source: MarketVector. Data as of January 2, 2024.
Source2: https://vietnam.mfa.gov.by/en/exportby/business/viobzec/
Kinjal Shukla is the Index Researcher and Data Engineer at MarketVector. She is responsible for the design and development of MarketVector indexes and for creating data infographics. Kinjal has cleared FRM Level 1 having come from a risk profile in Barclays, India. She has a degree in a Master of Science in Financial Engineering from Stevens Institute of Technology, USA, and an MBA-Tech degree from NMIMS-MPSTME University, India.
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