Strong economic outlook
A growing gross domestic product, stable economic policy and strong foreign investment: Vietnam’s economy is on the up.
The country is no longer a frontier market but an emerging economic power, a shift which marks an important transition in the region.
RMIT Vietnam’s VinaCapital Professor of Private Equity Professor Ian Eddie believes this transition will attract large international investments to support the development of the Vietnamese economy.
According to Professor Eddie, the transition will depend on Government reforms of state-owned enterprises.
“It’s important for Government to close those gaps, in order to sustain future growth, maintain openness for foreign companies and workers to come, and continue supporting new business start-ups,” he said.
“Cities today really need to be the centre for innovation and encourage new businesses.”
Supported by strong government policy, an entrepreneurial spirit is thriving, particularly in Ho Chi Minh City, which is home to half of all start-ups.
Professor Eddie said Vietnamese people had experienced a lot of success in starting businesses and quickly adapted to Vietnam’s emerging venture capital industry.
“I think the next generation of entrepreneurs is going to look for opportunities to scale up their small businesses to create sustainability, higher pay rates and more opportunities for workers,” Professor Eddie said.
“Vietnam currently has a big export economy; most of the exports are sourced from foreign direct investments. But if Vietnamese companies are growing themselves and building their skills, they will be able to build their internationalised ASEAN capabilities further.”
Read more about Professor Eddie’s insights into the Vietnamese economy and how RMIT Vietnam is supporting the entrepreneurial culture through the Graduation Certificate in Business Startups here.