Continuing Signs of Strength
From a recent Vietnomics update…
Despite its challenges, Vietnam continues to impress analysts with its potential. Recent examples:
A new McKinsey report (Growing up fast: Vietnam discovers the consumer society) highlights Vietnam’s growth, saying its middle class will reach 25 million households in 2013. McKinsey says Vietnam can grow because retail sales are among Asia’s lowest.
- A World Bank report says more overseas Vietnamese are visiting and moving back to Vietnam, and the money they send to relatives and for investments accounts for 8% of Vietnam’s GDP. (Last year, remittances were $7 billion, rounded up.)
- US continues to make Vietnam bets – Pepsi ($250 million), World Bank ($180 million), Boeing (with Vietnam Airlines), and Intel. But trade barriers led three firms to reduce commitments in Vietnam.
- A Nielsen survey finds Vietnam and Indonesia share the world’s second highest ranking (behind India) in consumer confidence.
- Also new — Vietnam emerging as a luxury car market, aiming for global supremacy in chess, adopting youth baseball, pondering 102-story building in Hanoi, and increasing beer competition.
First three quarters 2010 vs.2009 from government monthly statistical reports
Gross Domestic Product – $70 billion, up 6.5%
Consumer Prices – up 8.64%
Exports –$51.5 billion, up 23.2%
Imports — $60.0 billion, up 22.7%
International Visitors –3,731,900, up 34.2%
Foreign Investment –$11.4 billion, up 37.3%
Telecom –158.5 million phones, up 40.4%
Stocks — Closed at 454.52, down 22%