Saigon Port is one of the world's busiest container ports ©Getty Images
Saigon Port is one of the world's busiest container ports ©Getty Images

In the spotlight: Vietnam

Supply Management goes globe trotting to evaluate the procurement potential of countries around the world…

POPULATION 95.6m

AREA 331,210km2

THE HELICOPTER VIEW PwC predicts Vietnam’s economy will be the 20th biggest in the world by 2050. It is one of the CIVETS – a group of promising emerging market countries. 

ECONOMIC OUTLOOK While the economy remains “robust” according to the IMF, it still cut the country’s 2017 GDP growth forecast to 6.3% from 6.5%, because of a weakness in the oil sector, high public debt and the collapsed Trans-Pacific Partnership.

BIGGEST FOREIGN INVESTORS South Korea recently overtook Singapore to become Vietnam’s most significant foreign investor, with investment totalling $3.74bn.

SUPPLY CHAIN ISSUES A member of APEC, ASEAN and WTO, Vietnam is a critical link in global supply chains. An EU free trade agreement is set for 2018. It has a 3,200km coast along the South China Sea, with goods shipped via several major ports. It hopes to broaden links with China and its new silk road.

STRENGTHS Vietnam has enjoyed steady GDP growth and has a large potential workforce of young, motivated people. Its main exports include electronics, footwear and computer parts, and its manufacturing industry is strengthening thanks to foreign investment.

CHALLENGES Development and income capita remain low. Red tape and corruption continue to be challenges. Vietnam is a one-party state ruled by the Communist Party of Vietnam and there are transparency issues.

BOTTOM LINE One of the more stable nations in Southeast Asia, Vietnam continues to climb the rankings of countries to do business with. Total trade makes up 150% of GDP and high levels of FDI mean the future looks bright, unless the country is hit by external global shocks.

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