Hanoi (VNA) – Private investments in Vietnam have reached a new peak in contrast to the trend towards decline around the world and in the ASEAN region due to the impact of COVID-19 .
Thanks to its success in containing the pandemic, Vietnam has emerged as a bright spot, with economic growth reaching 2.91 percent in 2020 – a positive rate given the gloomy global picture.
The International Monetary Fund (IMF) forecast that its GDP will grow 6.7 percent this year. Goldman Sachs and HSBC are even more optimistic about the economy, which, they said, will expand 8.1 percent in 2021.
Vietnam’s middle and upper class is expected to grow substantially, from 25 percent of the national population in 2017 to 45 percent in 2030.
Moreover, free trade agreements to which Vietnam is a signatory have benefited the country regarding tariffs and exports, especially smartphones and electronic products, garments and textiles, footwear, and agricultural products.
Adjustments to the Law on Enterprises and the Law on Investment have also played a part in the country’s positive outlook.
In private investment, a total of 59 transactions worth 1.14 billion USD were conducted in 2020, with technology retaining its leading role over the last five years.
Local retail and service firms associated with technological solutions have caught the eye of investors, with notable investments including 100 million USD by Warburg Pincus in Momo e-wallet and the Northstar Group’s 130 million USD in Tiki – one of the three leading e-commerce platforms in the country.
Conglomerate Vingroup posted a record in this regard after GIC injected 500 million USD into Vincommerce in 2019 and KKR funnelled 650 million USD in Temasek and Vinhomes in 2020.
Investments in healthcare have also increased rapidly, as Mekong Capital and VinaCapital have poured 31.8 million USD into Pharmacity and 26.7 million USD into Thu Cuc Hospital, respectively.
Sectors such as transportation, education, healthcare, and technology are expected to become magnets for investors this year./.