The Asia Plus Securities (ASPS) of Thailand has recommended increasing investment in Viet Nam, citing the country’s high growth prospects based on its ample local workforce, low minimum wage and steadily rising per capita income, according to the Bangkok Post.

Manufacturing electronic components at Doosung Tech Vietnam Co., Ltd in Hoa Binh. Illustrative image (Photo: VNA)

An article on the newspaper wrote that the brokerage believed the Russia-Ukraine conflict and sanctions against Russian crude supplies have   impacted both the bond market and stock market but the impact has been limited.

Therdsak Thaveeteeratham, deputy managing director of ASPS, was quoted as saying that the impact of the war on the bond and stock markets will gradually decrease

To avert risk, the company points to investment in Viet Nam because of its strongly-developing economy, adding that Viet Nam has become more attractive to foreign investors thanks to a large working-age population and relatively low minimum wage.

ASPS said foreign direct investment in Viet Nam rose 7.8 percent year-on-year in the first quarter of 2022 despite the COVID-19 outbreak as leading global corporations begin expanding into the country, including Apple, Samsung and Toyota, while its GDP growth is forecast at 5-7 percent annually until 2028, surpassing both Thailand and Singapore.

The company also noted that Viet Nam's benchmark stock market index (VN-Index) has fallen only 2 percent since the beginning of  2022, a relatively modest degree when compared to the S&P 500 of the US, which dropped 10 percent, demonstrating Viet Nam steadiness despite the world's uncertainties.

Source: VNA