After thirty years of economic reforms, Viet Nam is setting new standards in export led growth. Even in trade friendly East Asia, Viet Nam is embracing trade and investment openness, and the dividends are paying out big.
In the next five years Viet Nam’s reputation as purely a low-end manufacturer will change. Since the close of the Global Financial Crisis, Viet Nam is now targeting higher-end manufacturing by becoming a lynchpin producer of electronics. The growth in this sector is unprecedented. Even faster than Viet Nam meteoric rise in textiles. In 2009, Viet Nam exported €3.5bn electronics, and by 2013 Viet Nam exported €30bn, the sector grew by 750%!
The key driver of growth is companies upscaling pilot projects into anchor facilities of global supply chains. Major manufactures, ranging from Samsung to Intel to Nokia, are intensifying their presence in Viet Nam. Doubling down on Viet Nam’s pro-investment policy environment, ideal geographic location, and ambitious, young, hard working population.
In addition, many companies are looking to get ahead of the looming Third Wave of trade deals that will solidify Viet Nam as a global manufacturing hub. The two key deals are a Free Trade Agreement with the European Union and Viet Nam’s membership in the exclusive twelve nation Trans-Pacific Partnership—the lowest income country in the negotiations.
Viet Nam’s leadership is building off what works. Knowing that to be competitive in the coming century, the country must _nd new means to attract investment, and build long-lasting partnerships with foreign investors. The National Assembly ratified a new Investment Law in 2014, and with these new trade pacts will create the highest quality institutions to support foreign investors. Viet Nam is in the unique position of being the cost competitive, labor intensive, high quality manufactured goods producer of the 21st century. The opportunity in Viet Nam is just beginning[...]
Volume 2 Brochure on Electronics 221214.pdf
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13:47 | 05/11/2015