Spotlight on Viet Nam

The leading emerging market

Viet Nam has never looked back since it first embarked on its economic renewal policy, Doi Moi, which was launched in 1986. Over the last 3o years, the economy has enjoyed an unbroken growth record, with an average GDP growth rate of 6.6% p.a. This publication aims to provide a snapshot of Viet Nam’s future, its industries and what it takes to be successful in this emerging economy that has come to be known as Asia’s next rising star.

 

Viet Nam in 2050

In our World in 2050 report, we projected that by 2050 Viet Nam could be among the Top 20 economies in the world and Top 10 in Asia. The average real GDP growth of Viet Nam could reach 5.1% p.a. between 2016 and 2050.

Going forward, the following growth engines are expected to enhance opportunities for investors in Viet Nam:

  • Young and growing workforce: Viet Nam has a growing educated workforce and is now in a period of golden population structure, where 45% are under 30 years of age.
  • Competitive economy, beyond low cost: By and large, the labour force in Viet Nam is cost-competitive, educated and increasingly skilled. This offers greater value and serves as an ideal production base for companies thinking of shifting or diversifying out of larger economies such as China.
  • Government committed to growth: Viet Nam has a stable socio-political environment and hence predictable policies in business and trade. The government is also committed to creating a fair and attractive business environment for foreign investors.

 

Winning in Viet Nam

Foreign companies seeking to capture Viet Nam’s advantages and opportunities will need to invest and develop local resources and capabilities, as well as navigate existing business challenges before they can secure their future and success in Viet Nam.

To turn their investments in Viet Nam into a success, businesses will need to plan and develop their capabilities around three broad domains:

  1. Create a localised go-to-market strategy by spending time to understand the local people and market
  2. Build stakeholder trust by showing the commitment to invest in Viet Nam for the long-term
  3. Invest in local talent by training and placing trust in them

 

In their own words

We invited PwC UK's Chief Economist John Hawksworth and several CEOs of locally based foreign companies to share their thoughts on Viet Nam - the prospects they see, the challenges they face and their keys to success.

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