Vietnam Logistics: Still Undervalued or Already Priced In?
Vietnam Logistics: Still Undervalued or Already Priced In? Infrastructure Spending After the Doi Moi reform in 1986, Vietnam opened its doors to foreign direct investment (FDI), setting the scene for one of the fastest-growing economies in South Asia. For most, if not all, economies, rapid economic growth comes with a stronger logistics and transportation industry, all of which could only be made possible with adequate infrastructure. Vietnam is currently in a state of optimal population. With the projection from the Ministry of Health, the Vietnamese population will start to decline after the early 2050s, prompting the Communist Party of Vietnam (CPV) to accelerate growth by easing credit and increasing infrastructure spending disbursement in order to get Vietnam to the High-Income Country (HIC) status before the population declines. In 2025, infrastructure spending was increased to 7%, alongside a near 20% credit growth, which helped Vietnam to achieve the 8% ...
