The economy of Vietnam was shining brightly in 2016, with growth at 6.2%, slightly lower than the target of 6.7 percent set by the government, while China and other emerging countries like Russia and Brazil stall. Vietnam’s GDP Growth was a top performer among the world’s fastest-economies only second to India, followed by Bangladesh and China.
Manufacturing, domestic consumer demand (private consumption) and rising foreign direct investment were economic drivers for this Southeast Asian nation and that led to outperforming neighborhood economies of Indonesia, Thailand and Malaysia that are part of ASEAN (Association of Southeast Asian Nations). The only negative industry sectors were mining and agriculture where Vietnam was a victim of many extreme weather events in 2106, flooding in the Central region and drought in the South.
In 2016 there was $118 billion US in retail sales rising 10% from 2015, where Vietnam’s retail sales are expected to reach $179 billion by 2020, according to the Association of Vietnam Retailers. Inflation was kept at 4.74 percent, lower than the 5% a ceiling set by the government.
The stock markets in Vietnam further attracted foreign investors that were net buyers for the 10th consecutive year. The benchmark VN Index was one of the fastest growing markets in ASEAN (Nations of SouthEast Asia) in 2106.
Vietnam is becoming a manufacturing hub in Southeast Asia
Vietnam is quickly becoming a manufacturing hub in Southeast Asia highly known for low cost manufacturing and wages. The ASEAN Economic Community (AEC) is a factor in driving many global businesses to relocate their manufacturing and production bases to Vietnam. AEC an agreement between the 10 countries of ASEAN
AEC envisions ASEAN as a single market and production base, a highly competitive region, with equitable economic development, and fully integrated into the global economy. Once AEC is realized, ASEAN will be characterized by free movement of goods, services, and investments as well as freer flow of capital and skills
Vietnam B2B Direct can be your trusted partner in Vietnam
Choosing a Southeast Asian country like Vietnam in sourcing low cost manufacturing entails extensive market research and due diligence. It is imperative for a company to a find reliable local partner with a long history of operating in Vietnam that can help you directly in considering low cost manufacturing, in Vietnam.
You need to have a partner that understands the business climate and culture of Vietnam.
Vietnam B2B Direct’s Management Group consists of well-educated English-speaking Vietnamese Personnel in its Vietnam operations trained in western business practices. And, it is important to be able to consult and communicate directly with your local expert in Vietnam that can provide insight on local markets and how these markets are likely to change in the short and the long term.
Vietnam B2B Direct’s focus is on building trade agreements between worldwide companies and Vietnam businesses by providing full supply chain management services in sourcing, manufacturing, importing and exporting.
Contact Mr. Bill Gadd at billgadd (at) VietnamB2BDirect.com to discuss your plans for sourcing a low cost manufacturing solution in Vietnam, or complete our inquiry form here …