As economic pressure has decreased compared to earlier expectations, the Vietnamese economy maintains its export competitiveness. It remains appealing as a destination for foreign direct investment (FDI), according to Citigroup Inc., a financial services company with its headquarters in New York City. According to Citi Research, Vietnam’s market share in international commerce is anticipated to increase over the medium term.
At the Vietnam Economic Outlook 2023 conference conducted in Hanoi, Citi Vietnam recently announced its Asia-Pacific economic statistics update for this year.
Vietnam accounts for less than 2% of global commerce, but that percentage has increased over the past ten years. According to Helmi Arman, an economist at Citi for Indonesia and Vietnam, this will likely increase as global corporations diversify their supply chains, and geopolitical concerns persist.
“For many more years, Vietnam can continue to rely on its export-driven economic strategy. Yet, if urbanization increases and per-capita GDP exceeds $4,000, FDI inflows may diversify and become more domestically focused, “Helmi added.
According to the forecast study, domestic consumption would also likely speed up regional economic development in the upcoming years.
The fourth quarter of 2022 saw slowdowns in the real estate and other exporting sectors, but long-term prospects for Vietnam remain undeniably bright, according to Ramachandran A S, country officer for Vietnam Citi, who also feels the nation has a competitive edge in luring Investment.
