Vietnam’s rapid economic growth is based on strong fundamentals.
Young, dynamic population
Vietnam is on the go. Almost two-thirds of Vietnam’s 86 million people are under 35 years – a demographic structure that will support growth over the long term. In addition, young Vietnamese are highly optimistic and forward-looking, with progressive attitudes to modern technology and products.
Low labor costs, high literacy and “trainability”
Vietnam’s labour costs are among the lowest in Asia. In addition, with literacy over 90 percent and a culture that values education and hard work, Vietnam is attracting an ever-greater number of major multinational corporations.
A strategic location with rich natural and farmable resourcesVietnam’s coastline of over 2,300km in the heart of Asia provides easy access to world markets. Vietnam is among the world’s leading exporters of rice, seafood, coffee, pepper, textiles, footwear and furniture and is also a major oil producer.
Stable, pro-reform government
Vietnam is routinely ranked among Asia’s most stable political environments by Business Monitor International, and accession to the WTO in 2007 has sparked a wave of pro-business and pro-investment reform.
Rising middle class, brand-conscious consumers
Vietnam’s rising middle class exhibits increasing brand consciousness, while also stressing value and quality in consumer surveys. As Vietnam’s middle class grows in numbers and in wealth, numerous domestic businesses – from financial services to education to housing construction – will see steady growth for many years into the future.
A growth trajectory that rivals any country in the world
Vietnam has been among the world’s fastest growing economies since the turn of the century, a trend that will likely continue for many years. Vietnam’s growth trend puts it at the leading edge of global emerging countries – a fast-changing environment that offers the possibility for superior investment returns over the medium to long term.
Savvy and eager to adopt new technologies
Vietnam’s Internet penetration rate of 29% puts it as the 18th most active Internet country in the world. From social networks to online gaming and commerce, the population is highly active online with broadband usage growing at 49% per year.
75% penetration rate, mobile phones are ubiquitous throughout the country
With a mobile phone in almost every Vietnamese person’s pocket, there is immense opportunity for mobile payments, banking, gaming and other value-added services. 3G networks are currently available with 4G discussions already underway.
Manufacturing and the supporting ecosystem
Vietnam has become a location of choice for multinational companies to expand their manufacturing capabilities, especially in the electronics and semiconductor sectors. Companies such as Intel, Compal and Foxconn have built some of their largest global plants in Vietnam. The sectors supporting these plants and the supply chain within Vietnam will continue to demonstrate strong growth, creating a unique investment opportunity for those familiar with the technology sector in Vietnam.
Larger scale, lower cost
The scale of Vietnam’s software outsourcing sector is behind only India and China. With a workforce that is quick to learn, increasingly knowledgeable about business processes and a sector that has the scale to service the largest global clients, there is little doubt that the next global technology powerhouse can emerge from Vietnam.