Vietnam’s economy could be bigger than Singapore’s by 2029, says DBS Bank in a research report. Banks and Investors are eyeing opportunities in the country.
The Southeast Asian nation has the potential to grow at a pace of about 6 to 6.5 percent over the next decade, DBS forecasts, citing strong foreign investment inflow and productivity growth in the coming years.
«If it can sustain that pace of growth, the Vietnam economy will be bigger than the size of the Singapore economy in ten years’ time,» Singapore-based economist Irvin Seah said in a research note on Tuesday.
Banks and Investors See Potential
Major banks have also positioned themselves for the growing middle class and potential deal flows in the country in recent years. Credit Suisse was amongst the banks involved in the $1.35 billion share sales of Vinhomes JSC, one of the leading residential property providers in the Southeast Asian country.
Global and local investors such as Capital Research and Management Company, Dragon Capital and Mirae Asset Global Investments agreed to take up about three-quarters of Vinhomes' equity offering, according to a term sheet of the issue.
Joining Vietnam's Narrative
The country's gross domestic product is expected to expand to at least 6.8 percent this year, according to government estimates. With favorable demographics, productive labor force, much-improved infrastructure, and stable politics, international investors have been pouring in money into the country, said Seah.
«Global investors have been lining up to be a part of the Vietnam narrative,» he said. «Strong FDI from China and Hong Kong in the first four months of this year may well mark the beginning of a new trend.»
