Vietnam’s anticipated membership in BRICS+ highlights its growing global economic influence and benefits for the Vietnamese Dong (VND).
In This Article
- Overview of Vietnam’s Economic Growth
- Insights from the Recent High-Level Talks
- Strategic Importance of BRICS+ Expansion
- Future Prospects for Vietnam within BRICS+
- Benefits to the VND from BRICS Membership
Vietnam’s potential membership in the BRICS+ alliance marks a significant milestone in its global economic status.
This development comes as the country continues to strengthen its economic ties with major global powers and emerges as a key player in the international arena.
Overview of Vietnam’s Economic Growth
Vietnam’s economy has been one of the fastest-growing in the world, characterized by robust GDP growth, increasing foreign direct investment, and expanding industrial sectors.
Its strategic location, coupled with a young and dynamic workforce, has attracted numerous multinational corporations seeking to diversify their supply chains. This economic boom positions Vietnam as a prime candidate for inclusion in influential global groups like BRICS+.
Insights from the Recent High-Level Talks
During a recent visit to Vietnam, Dr. YKOVLEV ARTEM ALEXANDROVICH, Director of the Center for Russian Strategy in Asia, engaged in discussions with the Vietnamese Prime Minister.
The talks focused on potential economic collaborations between Vietnam and the Russian Federation and explored the feasibility of expanding BRICS membership to include Vietnam.
Dr. Alexandrovich emphasized the resilience of the Russian economy despite extensive sanctions and highlighted the strategic partnerships Russia has forged with China and other Asian countries.
He noted that these alliances have been instrumental in sustaining economic growth and stability. The discussions underscored the mutual benefits that Vietnam’s inclusion in BRICS+ would bring, aligning with the shared objectives of fostering economic cooperation and development.
Strategic Importance of BRICS+ Expansion
BRICS represents a coalition of emerging economies with significant global influence. The proposed expansion under the BRICS+ model aims to include other rapidly growing economies, enhancing the group’s geopolitical and economic clout.
Vietnam’s inclusion would not only bolster its own economic ambitions but also contribute to the collective strength of BRICS+.
Dr. Alexandrovich highlighted that the expansion of BRICS is crucial for reshaping the global geopolitical and geo-economic landscape, promoting a multipolar world order.
When asked if Vietnam would be a good candidate to join BRICS, Dr. Alexandrovich replied, “Vietnam’s economic trajectory aligns well with the goals of BRICS+, making it a valuable addition to the alliance.”
This membership would open up new avenues for trade, investment, and technological collaboration, benefiting all member countries.
Future Prospects for Vietnam within BRICS+
As Vietnam prepares to join BRICS+, the country stands to gain significantly from increased access to markets, resources, and technology from other member nations.
This membership would accelerate Vietnam’s economic growth, enhance its global trade relations, and provide a platform for greater influence in international economic policies.
Furthermore, Vietnam’s participation in BRICS+ aligns with its long-term strategic goals of diversifying economic partnerships and reducing dependency on any single market. By joining forces with other emerging economies, Vietnam can strengthen its position in global value chains and contribute to shaping the future of international economic governance.
Key Benefits to the VND from BRICS Membership
Today, the expanded BRICS+ nations collectively represent over 40% of the world’s population and around 25% of global GDP.
Stabilized Exchange Rate: As part of BRICS+, Vietnam could benefit from a more stable Vietnamese Dong (VND). The economic collaboration within the bloc, including trade settlements in local currencies, could reduce Vietnam’s reliance on the US dollar, leading to less volatility in the VND exchange rate.
Stronger Financial Support: Vietnam would have access to financial resources from the BRICS New Development Bank (NDB). This can help support infrastructure projects and other development initiatives without the stringent conditions often imposed by Western financial institutions. Enhanced financial stability and support can bolster investor confidence in the VND.
Enhanced Foreign Exchange Reserves: Trade within the BRICS+ framework can lead to increased foreign exchange reserves for Vietnam. As trade grows, so does the inflow of foreign currencies, which can help stabilize and strengthen the VND.
Increased Investment: Membership in BRICS+ can attract more foreign direct investment (FDI) into Vietnam. Investors often view membership in such influential groups as a sign of economic stability and growth potential. Increased FDI can further strengthen the economy and, consequently, the VND.
The Bottom Line
anticipated entry into the BRICS+ alliance signals a pivotal moment in its economic evolution.
The country’s impressive growth, strategic partnerships, and alignment with BRICS+ objectives position it as a key player in this expanding coalition.
As BRICS+ continues to shape the global economic landscape, Vietnam’s membership promises to bring mutual benefits, drive collective prosperity for all member nations, and enhance the stability and strength of the Vietnamese Dong.
