Vietnam Net Bridge, 28 May 2015. Vietnam becoming base for global manufacturers.

An edited extract of the original article is reproduced below.

Experts and investors at a conference in HCMC on May 25 2015 said Vietnam is poised to become a major base for manufacturers around the world.

John Chong, chief executive officer of Maybank Kim Eng Group, told the Invest ASEAN conference that Vietnam is an emerging middle-income economy with immense potential for growth and faster structural reforms.

“We are very positive on the Vietnamese economy which we expect will grow more than 6% this year. And we think the establishment of the ASEAN Economic Community (AEC) as a single marketplace will further solidify Vietnam’s position as the region’s manufacturing hub,” Chong said.

Chong said Vietnam possesses many of the fundamentals for prosperity. They are a strategic location near global supply chains; a low-cost, youthful, educated and diligent workforce; a burgeoning consumer class and political and macroeconomic stability.

“Vietnam’s labor costs are half the rates in China, Thailand and the Philippines, making it an exceptionally competitive economy in an already attractive region,” Cong said…

Vietnam’s exports obtained average annual growth of 19.6% in the 2005-2014 period, far surpassing that of other ASEAN nations such as Indonesia, Thailand, Malaysia and the Philippines. Notably, Vietnam has shipped more value-added and hi-tech products including machinery transport and electronic items to the world…

Nguyen Van Dung, deputy head of the Foreign Investment Agency under the Ministry of Planning and Investment, said more opportunities are opening for Vietnam from the AEC and TPP. The Vietnamese Government is streamlining administrative procedures as a measure to improve the business environment…

 

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