Increasing political and exchange-rate stability, along with promising gross domestic product growth have catapulted Vietnam to the top of many investors’ agendas.
On Jan.11, 2007, Vietnam became the 150th member of the World Trade Organization, six years after China gained membership.Vietnam’s acceptance into the WTO validated its global economic viability and left many people asking, “Is Vietnam the next China?”
Vietnam’s recently transformed and relatively young stock markets currently offer some of the world’s highest returns, with the market index skyrocketing from just over 300 points in early 2006 to well beyond 1,000 points by year’s end.
But what does rapid economic growth mean to the domestic automotive and auto parts industry? Will Vietnam replicate the success China enjoyed in the automotive industry after joining the WTO?
This study assesses the state of the Vietnamese automotive industry and identifies the main drivers and key factors to consider with regard to investing in Vietnam. For the intrepid, Vietnam does offer possible medium to long-term opportunities.However, the Vietnamese automotive industry is still in an early developmental stage and significant challenges remain.
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