Vietnam Market & Consumer Outlook
Vietnam’s economic outlook remains bright with a stable growth over the past decade
There are both challenges and opportunities to address
Opportunities
– Trade agreements: EVFTA,
CPTPP, …
• Opportunities for export
• More foreign investment
• Technology transfer & development
• Improved business environment
• Wider range of imported products
with good quality and competitive
price
– ASEAN Smart Cities Network:
smart solutions in transport systems, urban management, flood monitoring systems and e-government services.
– Privatization of State Owned Enterprises (SOE): attract foreign investment, increase Government budget
– Growing urban middle class: strong domestic demand & consumption
-Sub-urban and Rural development programs
Challenges
– Business environment
• Legal reforms
• Competitiveness and attractiveness of local companies
– Rising oil price threatens inflation
– Exchange rate pressure amidst continued US-China trade war
– Public debt burden
– Rapid urbanization and migration in key cities result in:
• Increasing environmental issues (climate changes, air pollution, plastic waste, floods…) at an alarming rate
• Ineffective traffic and transport (management) system
• Negative impacts on infrastructure and services
• Insufficient capacity and lack of natural resources: power, water, etc.
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