Fitch Ratings has named Viet Nam among its top 5 favourite frontier markets.

According to the rating agency, as wages have risen in mainland China and its manufacturing bases shift toward more sophisticated products, many companies have opened basic production facilities in Viet Nam to take advantage of lower wages, said Andrew Fennell, Associate Director, Sovereign Ratings, Hong Kong.

Viet Nam has a large population of some 90 million, a growing labour force, a stable political environment and a strategic location in Asia to access key suppliers, such as Taiwan and [mainland] China, he pointed out.

(Photo: baodoanhnghiepvietnam)

Further, foreign direct investment in Viet Nam has quadrupled over the past decade to more than 8 billion USD, as trade improves. Today, for instance, 30 to 40% of Samsung mobile phones are manufactured in Vietnam.

Besides Viet Nam, Paraguay and 3 nations in sub-Saharan Africa are also on Fitch's list.

(Source: VNA)