The Report: Vietnam 2016
Vietnam has emerged as one of the fastest-growing economies in South-east Asia, offering a number of attractive investment opportunities in manufacturing, finance, construction, telecoms and logistics. Its diverse economy is expected to deliver growth of between 6% and 10% annually over the next 5-10 years, supported by a large population of nearly 90m.
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An active trading nation, Vietnam is poised to play an important role in ASEAN’s regional integration story. In particular, the country has established itself as a powerhouse in agriculture and textiles. New sectors to be developed in the future include mining, minerals processing and electronics. The main risks facing the country include a rapid increase in debt, inflation and currency volatility. Since the 1997 Asian financial crisis, however, Vietnam's political leaders have exercised prudence in macroeconomic policy, with a focus on the health of the banking sector and balanced fiscal policy. Foreign investor involvement has increased access to long-term foreign capital in much needed areas such as infrastructure and transport.
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