Vietnam's economy is the fastest growing region

Fitch predicts that Vietnam will continue to receive large FDI into the manufacturing sector and is one of the fastest growing economies in the Asia-Pacific region.

This is information from a seminar on evaluating Vietnam's economic prospects against the macro challenges organized by Fitch Ratings, in coordination with the prestigious financial magazine The Asset organized on June 11th.

Fitch predicts that Vietnam will continue to receive a large amount of FDI into the manufacturing sector, mainly in the electronics segment, thanks to its low cost advantages and supply chain connectivity. These positive trends will support stable short-term economic growth, although the global economic situation is weakening and Vietnam's high level of trade dependence can affect economic growth in 2019 and 2020.

Accordingly, Fitch predicts that Vietnam's economic growth rate will decrease slightly from 7.1% in 2018 to 6.7% this year and next year. However, this figure is still in the target of 6.6-6.8% set by the National Assembly, and Vietnam will continue to be one of the fastest growing economies in the Asia-Pacific region.

Besides, Fitch said that there are signs that the US-China trade tension is leading to a shift in trade flows from China and many companies also moved their production base to Vietnam. However, according to Fitch, it takes a while for the transition of factories from China to Vietnam on a large scale.

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