Vietnam - the Rising Economic Force in Asia by Srimal Fernando

 

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Vietnam - the Rising Economic Force in Asia

     By  Srimal Fernando Asia Correspondent

Vietnam is one of the most fascinating countries in South East Asia. It is a country on the move with a rapid growth of 5 percent  (estimates 2012). The country has a population of 91.5 million (estimates 2011) with a wealth of dialects spoken in different regions. The people of the country have a well-deserved reputation for being hard workers. Today the largely agrarian society of the country is shifting towards a more multi-sector economy after a robust growth in the past 20 years. The country has made significant headway into the international market in recent years.

The agricultural sector continues to employ a significant proportion of the labor force and the balance is represented by the service and industry sector. Since the mid 90’s, export growth continues to be the driving force behind the robust economy of the country. In the first seven months of 2012 the turnover of the country’s exports were estimated at 62.9 billion dollars. The number of foreign companies investing in the country has been increasing steadily and has a unified exchange rate for foreign currencies, which floats in response to the basic exchange market development. At present one dollar can purchase  almost 20,000 Vietnamese don in local currency.

Figures from the Ministry of Planning and Investment show that donors had pledged a total assistance of 71.8 billion dollars from 1993 to 2011. Vietnam has a large agricultural sector and is a net exporter of farming products. It is the second largest rice and coffee producer in the world.  

The burgeoning high-end industries based at the Export Processing Zones in Hanoi, Hue Hai Phong, Ho Chi Minh City, Binh Duongand Dong Nai yield many opportunities for investors. Exports of garments and textiles are one of the main sources of foreign exchange income for Vietnam. In the first seven months of 2012 the value of apparel exports stood at 8.2 billion dollars.  Despite having many active players, the telephone parts manufacturing industry in Vietnam had an approximate market value of 6.2 billion dollars in the first half of the year. The other major industries in the country are crude oil, steel, seafoods, wood product, rubber, machinery, electronic equipment, consumer goods, pharmaceuticals, chemicals and mineral fuels. Vietnam has also positioned itself as a key destination for operation of multinational companies in a variety of industries. In the recent years, the country has successfully attracted many big names and reputed global companies such as Nippon, Hitachi, Isuzu, Samsung, KFC, Toshiba, Canon, Toyota, Honda, Petronas and Lotte Mart.

Moreover, the fast growing tourism sector is another major pillar in the overall economic field of the country. Vietnam is emerging as a strong tourist destination with number of visitors to the country climbing to 6.0 million in 2011. Traveling to the country can be done in different ways. However the experience that a visitor gains is unforgettable. The country is home to a wide range of domestic and international airports. Hanoi’s Noi Bai Airport, Danang and Tan Son Nhat Airport of Ho Chi Minh City are the major stopover points for many international airlines. These  aviation hubs serve as a base to Vietnam Airlines, the flag carrier of the country. Tourists visiting this beautiful country will find that things they can see and do are limitless.  Hanoi known as “city of lakes”  the capital  of the country is today one of the most charismatic and cosmopolitan cities in Vietnam. It is a thriving metropolis with cloud-tickling skyscrapers, numerous specialty shops, boutiques and colorful markets that unhesitatingly leap into the future .

The name of the iconic leader Ho Chi Minh comes to mind when we remember the recent history of the country. The Ho Chi Minh mausoleum is a marble edifice with his remains displayed inside the chamber. This mausoleum was built to show the deep gratitude by the countrymen to their leader. It is the most recognizable tourist spots in Hanoi that attracts thousands of visitors every day.  

Visitors are charmed by the city which gracefully combines eras and cultures . A visit to the country would remain incomplete if one doesn’t drive the 3½-hour journey on road from Hanoi to Halong Bay port. The UNESCO world Heritage site Halong (or "Descending Dragon) Bay is situated amidst a splendid panorama. The bay covers an area of 1500-square-kilometres dotted with a cluster of 1960 lime stone islands. A double deck wooden boat cruise in the bluish green waters can be an enjoyable journey. One can make a leap to the south most important city; the Ho Chi Minh City or Saigon situated 1760 kilometers south of Hanoi. It is a beautiful cosmopolitan town  with  paved walk paths, 19th century buildings besides sprawling complexes that show the development fever in the country. Among its highest-esteemed attractions are the Notre Dame Cathedral, Municipal Theater, the re-unification palace and the Vietnam War Memorial Museum. Every year millions of tourist visit the noteworthy towns of Hoi An, Dalath, Hue and Danang to marvel at its exquisite beauty. Shopping is undoubtedly an attraction in the country.  The choices and variety for items here is incalculable.

On the development side, Vietnam’s transport system has already achieved measurable improvements. The country has launched several highway projects to bolster the 222,179 kilometers of road system. Out of this about 25 percent of highways are paved. Having doubled in length in recent years, multi-lane expressways now connects several major cities with more construction planned to upgrade the paved highways. To boost the state highway system the country plans to spend 14 billon dollars in the coming years.

As one of the fastest growing economies in Asia, Vietnam has prospects to position itself towards economic prosperity. Vietnam remains one of the most important trading partners in the globe. The county has opened up a host of opportunities for investors to tap the rapidly expanding local and regional markets.

  

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