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Nikkei forum hears of Vietnam's dynamism

Released at: 10:48, 17/11/2017

Nikkei forum hears of Vietnam's dynamism

Photo: Ngoc Lan

Nikkei Asean Review Hanoi Forum on November 15 marks strategic investment partnership between Vietnam and Japan.

by Ngoc Lan

The Nikkei Asian Review Hanoi Forum held in the capital on November 15 aimed to commemorate and recognize the strategic investment partnership between Vietnam and Japan as the former constantly enhances its global status as a leading economy in the ASEAN region.

The forum was jointly organized by Japan’s Nikkei Inc. and the Embassy of Japan in Vietnam, with support from the Ministry of Planning and Investment.

According to Nikkei Asean Review, Vietnam is one of the most dynamic markets in Asia. The reform of the stock market and the equitization of State-owned enterprises (SOEs) will be the main forces behind its economic growth and investment and cooperation between the two countries.

Mr. Pham Hong Son, Deputy Chairman of the State Securities Commission of Vietnam, told the forum that businesses and investors in attendance can gain an overview of the growth potential of Vietnam and shape their strategies for the next phase.

Mr. Shosuke Mori, Deputy Head of the International Banking Unit at the Sumitomo Mitsui Banking Corp., said that Vietnam’s economy has grown steadily over the past 20 years and it is the only country that has consistently achieved growth of more than 5 per cent among the five ASEAN countries. “Vietnam’s economy still faces many challenges, however, such as SOE reform,” he noted. “From 2016 to 2017, the contribution by SOEs accounted for 32 per cent of Vietnam’s economy and contributed 32 per cent to GDP but growth in the sector is very low, at just 3.8 per cent.”

Mr. Nguyen Duy Hung, Chairman and Chief Executive Officer of Saigon Securities Inc. (SSI), said its abundant and young human resources provides a solid foundation for businesses and Vietnam has been an attractive investment destination for foreign partners, including those from Japan. “Vietnamese enterprises have been closing the gap between their regional partners and more and more major SOEs are being equitized, generating development opportunities for investors and the stock market,” he said. “The government has also undertaken important reforms in recent times, paying particular attention to attracting foreign investment.”

Regarding the potential of the stock market, Mr. Son said it was the fastest growing in ASEAN. “The SSC has found that stock and bond market capitalization are now equal to 100 per cent of GDP and the current credit balance is 130 per cent of GDP,” he told the forum. “This suggests that Vietnam’s financial and monetary markets are gradually achieving a more balanced and stable structure than in the past.”

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