Major Vietnamese government reforms will unleash growth and propel a new exciting investment cycle

(MENAFN- Perceptiona) Mai Vu, PM of Vietnam Equity UCITS fund at Dragon Capital, Vietnam’s largest fund manager, said: "Doi Moi 2.0 promises an institutional revolution in Vietnam. By reducing headcount, streamlining the investment approval processes and enhancing efficiency, the Vietnamese government is ushering in an exciting new investment cycle which will contribute to the country’s 8% GDP growth target.
“Vietnam has already developed a strong strategy for shielding its growth from global risks, including US tariffs, and we believe the two countries will come to a mutually beneficial agreement over trade.”
The Vietnamese government will reinvigorate the country’s economy by streamlining administration and reducing bureaucracy through a series of reforms known as Doi Moi 2.0.
Growth ambitions are set at 8% by 2025, with double digit increases in the ensuing years.
Plans include reducing government headcount by 20% over two years, streamlining the investment approval process; and introducing greater government efficiency.
Infrastructure improvements will form the backbone of Vietnam’s expansion plans with major investment in transport, energy and digital projects.
These include the Long Thanh International Airport construction, a $60 billion high-speed railway connecting Hanoi and Ho Chi Minh City, the Quang Trach 1 Power Plant project and fibre optic and 5G deployment across Vietnam.
Risk mitigation
Vietnam is implementing a wide range of measures to mitigate trade risks, including those from US tariffs. Half of exports to US from Vietnam come from FDI enterprises primarily from Japan and South Korea, and Apple suppliers.
Further, Vietnam is ready to import more farm products, more imports of American liquefied natural gas, and commit to purchasing more airplanes from the US, as well as changing the FX intervention regime from “fixed price” to “floating price” which mitigates the risk of huge and sudden currency intervention.
And, as of 2024, Vietnam has overtaken Japan and South Korea as China’s third largest export destination.
Mai Vu, PM of Vietnam Equity UCITS fund at Dragon Capital, Vietnam’s largest fund manager, continued: "This combination of government reforms, global trade risk mitigation and aggressive growth targets make Vietnam an exciting investment proposition that investors can access at an attractive valuation.”

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