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CURRENT GROWTH AREAS

Modernisation of production and energy efficiency will be key areas in 2010. Despite the global financial crisis the Vietnamese economy grew 5.3 % in 2009 and is forecast to grow 6.5 % in 2010.

The key goal for Vietnam is to remain competitive within the most important export sectors: fisheries, gift articles, shipbuilding, clothing, shoes, oil and gas, furniture, coffee, rice, pepper and other agricultural raw materials.

Competitiveness requires modernisation of production and a more rational production process which is a major challenge in Vietnam.
Increased energy efficiency is an absolute necessity for Vietnam, and comprehensive investments are required to reduce waste in production, transmission, and in housing and other buildings. The same goes for the environment, which has suffered during many years of focus on economic growth.

Agriculture is still Vietnam’s most important sector, but growth is limited, and industrialisation is lacking. Foreign direct investments are not favouring agriculture, and the processing industry is only now getting started and is not considered competitive. There are great challenges in mechanizing post-harvest processes in Vietnam.

Opportunities for Danish exporters and investors exist in almost all sectors of the economy. Local production of industrial goods and intermediate products that can contribute to capacity building within the local industry and reduce imports are very high on the government’s list of priorities. The demand for consumer goods of higher quality and at higher prices is increasing in and around the major cities, first and foremost Ho Chi Minh City and Hanoi.

The majority of the bilateral trade turnover is controlled by Danish companies that are outsourcing production to Vietnam within ICT, furniture, shoes, clothing, gift articles and the metal industry.

More than half of Vietnam’s 86 million inhabitants are younger than 30.

Edited January 25, 2010