Vietnam's Ascendance in Global Manufacturing Trends: Opportunities and Growth in 2018
Unlocking Vietnam's Manufacturing Potential
Unlock the potential of Vietnam's booming economy in 2018 as it emerges as a manufacturing powerhouse on the global stage. With robust industrial production and favorable business conditions, Vietnam stands among the top destinations for outsourcing ventures, offering promising growth prospects for businesses worldwide.
Top Fastest-Growing Country for Growth by 2025
According to CBRE Research, Vietnam is set to lead the pack as one of the top fast-growing manufacturing sectors in the Asia Pacific by 2025. With projections showing a 2.7% growth in global manufacturing productivity over the next eight years, Vietnam's significantly lower manufacturing wages compared to China make it an attractive choice for businesses seeking cost-effective manufacturing solutions.
The New Year's Promise
Fueled by sturdy industrial production and enterprise’s rising confidence, the economy grew 6.81% in 2017, the highest rate of the past decade. The 6.81% boom comprises growth of 2.9% in the agro-forestry-fishery sector, 8% in the construction and industrial sector, and 7.44% in the service sector.
According to the General Statistics Office (GSO), a survey of over 5,725 Vietnam manufacturing and processing enterprises released last week, 49% of respondents said that their production and business 2017 fourth quarter was better than in the 3rd quarter. About 48.2% of respondents expected that their production and business in the 1st quarter of 2018 will be even better. In addition, the booming manufacturing industry in Vietnam includes the following sub-sectors: Automotive Manufacturing, Heavy Industry, Electronic Component Manufacturing, Aircraft Part Manufacturing, Defence Manufacturing, Oil & Gas Manufacturing.
Vietnam’s index for industrial production climbed 9.4% in 2017, a year-on-year 7.4% rise respectively. The key driver of the country’s industrial production is the processing and manufacturing sector, which grew by 14.5% year-on-year, the highest growth over the past 6 years. As of 1st of December 2017, the inventory index of manufacturing and processing sector rose by 8%, the lowest level since 2013.
Ranked 68th out of 190 Economies
Vietnam's favorable business environment is underscored by its climb to the 68th position out of 190 economies surveyed in the World Bank's "Ease of Doing Business 2018" report. Significant improvements in areas such as tax payment, trading, contract enforcement, access to credit, and electrical reliability have contributed to Vietnam's attractiveness for business ventures. With 39 business reforms undertaken over the past 15 years, Vietnam's commitment to enhancing its business climate is evident.
A Promising Outlook for 2018
In conclusion, Vietnam's impressive economic growth in 2017 sets the stage for a promising 2018, particularly in the manufacturing industry. As businesses worldwide seek opportunities for growth and expansion, Vietnam's ascent in global manufacturing trends offers a compelling destination for investment and collaboration.
References:
The Future of Global Manufacturing report by CBRE Research and Oxford Economics
