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Vietnam’s Economy Is Growing Rapidly

Murat Atik

Vietnam had the fastest growing economy in the region in 2020, surpassing China with around a 2.9% growth despite the pandemic. Today, Vietnam is the fourth largest economy of the Southeast Asian Nations (ASEAN) region. The trade volume of the country will continue to grow in light of the developments such as its inclusion in the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade blocs, and the recent free trade agreement (FTA) it has signed with the European Union. It has had a continuous trade surplus within the last five years. Its export-based industrialisation model, growing middle class, fast-growing transportation infrastructure, low-cost labour, geographical advantages, and ever-improving business environment all come together to attract direct foreign investment to Vietnam.

Vietnam is also expected to increase its role in the changing global supply chains after the pandemic. We see many international companies turn to Vietnam for their investments due to the competition between the USA and China. Vietnam is also standing out as an alternative to China for Europe and US-based companies.Turkey and Vietnam, on the other hand, has approximately $1.5 billion worth of a trade volume, with import constituting the majority of it. Turkey imports mostly electrical devices from Vietnam and exports machinery and mechanical parts. One of the most important factors of our expansion success towards the Asia-Pacific region and our strategies for accessing the ASEAN market would be the awareness of our people regarding Vietnam.

Chairperson, Turkey- Vietnam Business Council Abdülkerim Murat Atik

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