The question in the title might be a little over the top but let us explain why Vietnam is one of the best places to invest in as of today.
Let us start by a simple observation. Asia is the place of the World that has the largest GDP growth. Asia can be subdivided into three categories when it comes to investing: the first group of countries are the developed Asian economies, the second group is made by China only (we will explain later on why China can be viewed as group by itself) and the third group includes fast developing countries and includes Vietnam.
The first group that we defined as being the group of developed countries naturally includes Japan and South Korea. This group of countries are not necessarily the best place to invest and this for two main reasons. The first reason is that they are already rich countries and the economic growth is not very high. The second reason is that these countries have a major issue with their fertility rate. Having roughly 1 child per woman has terrible consequences on the country on so many levels. Japan fertility rate is around 1.4 child per woman while the Korean rate is below 1, a real tragedy.
The second group is not a group as such since there is only one country in it but a country like no others. With a total population of 1.4 billion people and a GDP annual growth rate averaging more than 9% over the last 30 years, China is without any doubt the world next superpower.
Per capita gross domestic product (GDP) in China will reach that of a “mid-level advanced country”, with a bigger middle-income group at home and “new competitive advantages” abroad by then, according to the communique. In summary, China will be a rich, green, fair and formidable economic power by 2035.
The third group is the one relevant to us. This group includes Vietnam. It is widely expected that this group will continue to see high GDP growth and that these countries will also benefit from the rise of China. Even though, Vietnam and China remain in dispute over territorial issues in the South China Sea, the two countries have close ties and strong business relationships. In a way, Vietnam can be viewed as a little China from 10 years ago. China is currently much richer than Vietnam, but Vietnam is following the trend and grows at an incredible rate. The future is Chinese fore sure, but Vietnam will have a part to play in it.