Industry & Retail
From The Report: Vietnam 2017
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On the back of sound economic growth, a continuing inflow of foreign direct investment and a healthy labour force, the industrial base in Vietnam has been steadily expanding over the past two decades, with export-orientated manufacturing playing a major role within the overall economy. The potential for manufacturing in Vietnam is much higher than it was just five years ago. Recently signed free trade agreements are likely to further boost competition, as well as extend the country’s international reach, as manufacturers continue to view Vietnam as a low-cost alternative to China.

This chapter contains interviews with Michael Behrens, General Director, Mercedes-Benz Vietnam, and Chairman, European Chamber of Commerce; and Mai Kieu Lien, CEO, Vinamilk.

Articles from this Chapter

Overview

Forging ahead: The nation continues to liberalise its industrial base and manufacturing sector
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On the back of sound economic growth, a continuing inflow of foreign direct investment (FDI) and a healthy labour force, the industrial base in Vietnam has been steadily expanding over the past two decades, with export-orientated manufacturing playing a major role within the overall economy. The potential for manufacturing in Vietnam is much higher than it was just five years ago. A process of natural selection is now taking place, and businesses that are unable to compete – owing either to a…

Interview

Promising start: Michael Behrens, General Director, Mercedes-Benz Vietnam;and Chairman, European Chamber of Commerce, on factors shaping growth in the automotive sector
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Interview: Michael Behrens What is driving automotive growth in Vietnam? MICHAEL BEHRENS: In 2011 the Vietnamese market was very predictable and low on consumption. Since then it has taken off in the sense that it has a good growth rate given the market’s small size. Sales in 2016 were around 300,000 units compared to millions in other markets in the region. This growth has been driven by Vietnam’s urbanisation and the rising affluence of its middle class. To a certain degree, it could also…

Analysis

A changing landscape: A series of new agreements and initiatives is set to keep: manufacturing on top A changing landscape
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With the signing a series of free trade agreements (FTA), Vietnam’s textile and garment sector will see a host of new business opportunities as well as new challenges as competition among regional producers heats up. It is crucial that the industry continues to attract orders; it has been a major revenue generator for the country’s economy, with some 5000 textile and garment businesses in operation, supporting more than 2.5m jobs. The export value of textile and garment products ranks…

Interview

Potential for growth: Mai Kieu Lien, CEO, Vinamilk, on local producers’ ability to compete in the global marketplace
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Interview: Mai Kieu Lien How can Vietnam stay competitive following the recent trade agreements? MAI KIEU LIEN: As the agreements were recently signed, most regulations are still under discussion, and the government will need a few years to fully implement them. Even with new export regulations, local companies need to stay on their guard to ensure their own competitiveness. Currently, Vietnam’s dairy industry is not receiving any support or protection from the government, so the import-export…

Overview

Talking shop: A growing young population and liberalising reforms have foreign brands eyeing Vietnam
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A stroll through the newest shopping mall in Ho Chi Minh City proves that there has recently been a sweeping transformation in the Vietnamese retail sector. Only some years ago shopping in large modern shopping malls was limited, and much of the demand for inexpensive, Asian-manufactured goods was focused around smaller, traditional retail centres. Now major foreign brands have been preparing to tap into a rapidly growing consumer base that has been driven by rising disposable income, rapid urbanisation…