Bannan agreed and said the current macro environment is very strong, with high rates of GDP growth, low inflation and a large trade surplus.
‘The government has undertaken a lot of reforms over the last decade to open up the economy and encourage investment in vital infrastructure.
'This has allowed Vietnam to industrialise and attract huge amounts of FDI with a lot of production relocating from Northern Asia to Vietnam,’ said Bannan.
'As the Vietnamese move from virtually subsistence existence in rural areas, where 65% of the population still live, to work at these FDI invested factories there is a monumental shift in household wealth. I have experienced these developments first hand, having spent 5 years living in Saigon.'
Vietnam is a beneficiary of reshoring from China regardless of the outlook for deteriorating trade relationships with the USA because wages are so much cheaper there. The nation’s Communist Party is more akin to China’s thirty years ago than the organisation today and with a large young population Vietnam is hungry for growth.Click HERE to subscribe to Fuller Treacy Money Back to top