According to HSBC, manufacturing is still an important factor for Vietnam to achieve strong economic growth.
According to the Vietnam Economic Outlook 2017 from Hong Kong Shanghai Bank (HSBC), manufacturing sectors remain important factors for Vietnam to achieve strong economic growth.
Vietnam continues to win global market share in some key categories, from clothing to electronics, reflecting in part the integration of the domestic economy into regional supply chains of multinational companies. nation.
The Viet Nam Economic Review: A Guide to Success in Vietnam 1
Manufacturing is still the economic driver in 2016 and is expected to thrive in 2017. Photo: Hoang Ha.
According to this bank, Vietnam's highly competitive workforce is an important attraction, helping Vietnam to disburse its FDI inflows to record levels in 2016. Top Foreign Investors come from three countries Korea, Japan and Singapore. Similar to previous years, the manufacturing sector still predominates in attracting capital.
In addition, the efforts made to accelerate the pace of capital withdrawal are an important impetus for ongoing structural reforms. This includes the sale of state-owned shares in SOEs, a process that helps to increase sales, reduces future potential cost burdens such as subsidies, and improves efficiency. of SOEs.
The faster pace of divestiture will give the government more fiscal opportunity to stimulate economic activity. Although just a small move, the decision underscored the government's determination to deepen structural reforms that could improve long-term economic growth prospects. .
In its report, HSBC highlights the potential of the manufacturing sector in 2017.
According to data from the report, in December 2016, industrial production rose 7.8% over the same period last year, from 7.4% in November 2016. Double-digit growth in manufacturing accounted for 75% of total industrial output, helping to offset the decline in mining and quarrying output.
