II. A Preeminent International Destination

Viet Nam's economy is among the most rapidly growing and stable in Southeast Asia. Its major macroeconomic metrics, particularly the high projected increase in GDP and the middle class, in conjunction with the country's already high private consumption rate, offer a climate that is both attractive and sustainable for investment. The recent growth in FDI investment is evidence of Viet Nam's robust business fundamentals.

The government of Viet Nam has set lofty objectives, including achieving upper middle-income status by 2035, high-income status by 2045, and net-zero carbon emissions by 20507. In a world just emerging from a pandemic and now facing the global repercussions of the Ukraine conflict, the short-term objective will be to preserve macroeconomic stability, restrict inflation, stimulate growth, enhance the economy's autonomy and resiliency, and provide incentive for the achievement of long-term objectives.

Private consumption accounts for more than half of GDP and will stay robust. The improvement in the country's labor market would be the fundamental factor supporting private spending growth. About 70% of the population is of working age, with the majority being under 34 years old, a group with the potential to absorb science and technology and career flexibility. Viet Nam is anticipated to maintain its golden population structure until 2035, and thus represents a sizeable share of the "golden population" in terms of economic development.

Urbanization is fundamental to Viet Nam's economic expansion strategy. In 2022, the current urbanization rate is 40.4%, up 0.6% from the prior year and is projected to reach 44.0% by 20308. Before achieving full middle-income status, nearly all nations must achieve at least 50% urbanization. Viet Nam is undoubtedly headed in this direction. The urbanization of Viet Nam will continue at a rapid pace over the next 10 to 15 years, and the expected sources of urban consumption will likely spread to smaller cities, such as Can Tho, Da Nang, and Hai Phong, where the middle class is projected to expand.

Viet Nam has an abundance of incubators, accelerators, and innovation laboratories compared to other regional markets. Despite market volatility, global capital continues to flow into the country due to its strong economic fundamentals and expanding digital environment. The interest of investors for digital services such as e-commerce, fintech, health-tech, and ed-tech, which grew as a result of COVID-19, is anticipated to remain robust.