Vietnam, while having to adopt strict measures to prevent coronavirus infections, has been on track for reopening in a safe and flexible manner.

Prime Minister Pham Minh Chinh at the dialogue. Photo: VNA

Prime Minister Pham Minh Chinh stressed the view in a dialogue with the UK business community in Edinburgh, Scotland on November 3, which was held during the Vietnamese leader’s visit to the UK and attending the COP26.

According to Chinh, challenges for Vietnam include the necessity to invest in strategic infrastructure, pushing for administrative reform, finalizing legal framework on the capital market, and harmonizing Vietnam’s priorities for development with foreign investors’ investment strategies.

“Vietnam welcomes support from the UK investors in policy consultation and state governance that are suitable to the country’s characteristics and the global trend,” Chinh added.

The prime minister noted Vietnam sets the goal of becoming an industrially developing country and moving up from the low-income group by 2025; a modern industrial developed country of upper-middle-income by 2030; and a developed country with high income by 2045.

“The country’s development is based on three main pillars which are the people, nature, and culture, along with external factors to support growth including technologies, governance capability and investment capital,” Chinh said.

Despite the fact that Vietnam remains a developing country that has experienced years of wars, Chinh said Vietnam has expressed a strong commitment to pursuing green development by taking part in every initiative at the COP26 along with a net-zero emission by 2050.

“The Vietnamese Government sees investment cooperation as a harmonization of benefits and risk sharing between the two sides,” he said.

Chinh added the advantages of Vietnam come from political stability and an independent diplomatic policy with a focus on multilateralism.

“Vietnam stands as a credible partner and responsible member of the international community,” Chinh said.

Given the fact that Vietnam is one of the most open economies in the world being a member of 17 free trade agreements, Chinh expects the country to be an ideal investment option for investors.

“Vietnam’s consistent investment policies would ensure long-term stability for investors in the future,” he continued.

The prime minister pointed out other advantages in terms of the labor market, natural conditions, and sustainable development policies that put priority on social welfare over short-term economic gains.

At the dialogue, General Director of VinaCapital Don Lam said as Vietnam has gradually contained the pandemic and reopened the economy, the economic prospects remain bright for investors.

Don Lam expected with over 40 UK companies at the event, including those that are among the largest in Europe managing assets of over US$1 trillion, would invest 1% of that figure, or around $10 billion into the Vietnamese market.

Research Director of VinaCapital Ismael Pili said the Vietnamese economy averaged growth of 6-7% in three consecutive years prior to the Covid-19 pandemic. In 2020, Vietnam was among a handful of countries recording a positive growth rate of 2.91% despite the pandemic.

The Government targets a growth rate of 6-6.5% in 2022, putting the country among the fastest-growing economies in the world.

Prior to the dialogue with the UK business community, Chinh held a separate meeting with General Director of VinaCapital Don Lam in which he called for investment to be poured in, not only the securities market but also finance centers in Vietnam.

Chinh suggested VinCapital should expand investment activities to strategic fields including transport infrastructure, digital infrastructure, green economy.