Vietnam Market Brief (2019Q3EN)
Over the next 3 years Vietnam has the highest GDP growth in Southeast Asia. Fixed investment has increased, credit is under control, and the stock market has recovered after a slump. Investor confidence is also high, driven by improvement in the business environment.
The GDP growth rate increased by 7% in 9M/2019, the highest in the last nine years. The main drivers of economic growth were the manufacturing and processing industry (up 11% YoY) and the services sector (wholesale and retail increased 8% YoY). Strong export value of over US$190 billion resulted in a US$5.9 billion trade surplus in 9M/2019. The US was the largest export market.
Registered FDI slowed to US$15.7 billion, down -20% YoY. However, disbursed FDI increased 7% YoY to over US$14 billion. Korea was the largest FDI contributor whilst the manufacturing and processing sector attracted the highest investment. CPI is well controlled below 3%, and international visitor momentum continued with 12.8 million visitors, increasing 11% YoY.