Want to be in the loop?
subscribe to
our notification
Business News
VIETNAM MAY BE ONE OF THE FASTEST-GROWING EMERGING MARKETS BY 2035
Vietnam could rank among the fastest-growing emerging markets by 2035, due to the country's consistent policies and emphasis on maximising its trade potential, according to a study released by S&P Global on October 16.
The S&P Global Look Forward Journal, titled "Emerging Markets: A Decisive Decade", which considers the opportunities and challenges the next decade will bring for emerging markets' economic growth in terms of energy transition, supply chain integration, and labour productivity.
Among the findings, S&P Global opine that emerging markets will play a crucial role in shaping the global economy over the next decade, averaging 4.06 per cent GDP growth through 2035, compared with 1.59 per cent for advanced economies. By 2035, emerging markets will contribute about 65 per cent of global economic growth, driven mainly by emerging economies in Asia, including China, India, Vietnam, and the Philippines.
Supply chain relocation will remain a key trend that could benefit emerging markets, including Vietnam. The country’s ties with the United States have been developing quickly, even before the pandemic. Vietnam’s exports to the US have increased fourfold since 2013 and accelerated following tariffs imposed on China in 2018. The country became the seventh-largest goods supplier to the US in 2023.
"We estimate that Vietnam could become one of the fastest-growing emerging markets by 2035, buoyed by policy consistency and a focus on reinforcing its trade potential. Vietnam’s strong presence in evolving global supply chains will be determined by sustained progress in addressing infrastructural, labour and resource constraints," the report noted.
In addition, emerging markets are also setting sector-specific objectives. Among them, Vietnam aims to secure a 10 per cent share of the world’s semiconductor market by 2030 through its National Semiconductor Industry Strategy.
The report identifies critical development needs that emerging markets face in facilitating this growth, including additional investment in adopting new technology such as AI and automation. Furthermore, emerging markets will need to adapt to new policies and extraterritorial legislation from advanced economies to secure more foreign direct investment and take advantage of favourable demographics expanding their labour force and consumer markets. Markets that produce critical minerals for the energy transition like copper, cobalt, nickel, and lithium will likely record exponential demand growth in the next 10 years, and others will benefit from global supply chain relocations.
Carlos Cardenas, head of Latin American insights and analysis for S&P Global Market Intelligence, noted that, "Despite these opportunities, emerging markets will traverse an evolving geopolitical environment marked by unresolved conflicts and other persistent disruptions. These countries must adapt to a world where policymakers, particularly within advanced economies, seem less willing to embrace limitless trade and globalisation, adding complexity to emerging markets' growth prospects."
Source: VIR
Related News
VN SHOULD FOCUS ON DEEPER INTEGRATION INTO THE GLOBAL SUPPLY CHAIN NETWORK
As international businesses look to create new links in the global supply chain, Việt Nam, as well as the rest of the Southeast Asia region, can emerge as a major destination for foreign direct investment (FDI), said economists and policymakers.
VIETNAM’S TEXTILE SECTOR AIMS FOR US$44 BILLION EXPORTS
Vietnam’s textile and garment industry is ramping up production in the final months of 2024 to reach its export target of US$44 billion, according to the Ministry of Industry and Trade. Textile production in September increased by a marginal 0.1% against the previous month but surged by 11.2% year-on-year.
DEX CONNEX VIETNAM 2024: UNLOCK BUSINESS OPPORTUNITIES WITH MALAYSIA'S LEADING TECH COMPANIES
On behalf of Sunwah Group Vietnam and Sunwah Innovations, in collaboration with the Malaysia Digital Economy Corporation (MDEC), we are delighted to cordially invite you to participate in DEX Connex Vietnam 2024 on Thursday, 14 November 2024 in Ho Chi Minh City.
VIET NAM-U.S. TRADE EXCEEDS US$100 BLN MARK OVER NINE-MONTH PERIOD
As of September, there were 13 key Vietnamese commodities with export value over US$1 billion each. Computers, electronics and spare parts took the lead with US$17.32 billion; followed by machines, equipment and tools with US$15.5 billion; and garment with US$12 billion.
NON-BANK CORPORATE BONDS FORECAST TO RECOVER IN YEAR-END MONTHS
Under an October 2024 corporate bond market report released recently, analysts of the rating agency FiinRatings said that the US Federal Reserve (Fed)'s first interest rate cut in four years was a positive sign for the Vietnamese exchange rate, after the State Bank of Vietnam (SBV) continuously sold the US dollar due to high capital withdrawal demand.
YEN BAI INDUSTRIAL ZONES AUTHORITY BOOSTING INVESTMENT PROMOTION AND ATTRACTION
The Yen Bai Industrial Zones Authority has actively diversified investment promotion and attraction forms for local industrial zones and achieved positive outcomes in recent years, helping improve the vibrant, high-quality and effective investment and business climate in local industrial zones.