ECONOMY
WHY VIETNAM FOR MANUFACTURING BASE/OUTSOURCING DESTINATION OVERVIEW Vietnam is a promising destination for manufacturing sector compare to other countries in Southeast Asia with the fast growth in economy and technology development. Vietnam puts a step in creating competitive environment for the development of manufacturing and becomes an attractive destination for foreign investment. This briefing will give an overall insight in Vietnam's economy, competitive advantage over other countries in Southeast Asia and limitations.
THE GROWTH TREND Vietnam continues to expand the economy, growing the fastest in Southeast Asia (2019). Manufacturing, tourism and private consumption contribute to Vietnam's GDP growth of 7 percent.
PROMISING OUTLOOK Expansion on Manufacturing
2019 has been a bad year for global manufacturing and also in Southeast Asia. It is apparent that the region's contracting Purchasing Manager's Index (PMI) was close to, or in, a manufacturing recession. Most share falling prices for manufactured goods. Vietnam was on the expansion trend to compete with China Gain Net Beneficiary of Trade
Since mid-2018, there is a clear slower trend in the export the major ASEAN countries. As more factories relocate from China, the US imports from Vietnam (Jan-Oct 2019) are up by a third.