Vietnam 2020: Global Industrial Powerhouse
Vietnam is one of the fastest developing nations in South East Asia. An
advantageous geographical location Vietnam is quickly attracting foreign direct
investment. It is expected that by the year 2020, Vietnam will climb to a global
industrial centre with stabilized political and social environments, with the
development of a transport system, infrastructure and a major industry shift as the
workforce transitions from unskilled to skilled labour force.
Vietnam’s regional focus for industrial development is in the Southeast. Prospective
investors and government bodies are planning for what is hoped to be the boom of
the Mekong Delta in 2020. The delta is one of Southeast Asia’s largest food exporting
regions, producing the tropical fruit for much of the region. Currently, Ho Chi Minh
City (HCM) is the most developed city in the southeast; however, in less than a
decade, HCM City will be just one of several urban centers for the production of
economic, industrial, commercial, science and technology, transport and international
exchange services. By all projections, in 2020 this region will be known to the world
as a robust industrial sector.
Vietnam’s government is investing heavily to dramatically improve its transit systems
and energy production. The national and provincial roads currently are undergoing
upgrades and expansions, to creating access from HCM City to the rest of the
country. As HCM and the Mekong Delta region will be the driving force behind the
new economy’s infrastructure, moving goods and people quickly around the country
will be a critical component. Even more importantly, the regions industrial capacity,
coal, thermal and hydroelectric power stations will be the driving forces fueling the
economy. Power stations are now being constructed and will be ready by 2015.
The current shortage of skilled labour in the rural areas of the Mekong Delta are
predicted to end by 2020. According to the Ministry of Labour, vocational training in
the area has developed rapidly in recent years, with the addition of 11 vocational
training colleges and 20 vocational secondary schools. Unemployment dropped to
14.13% in 2008, down 6.45 points in only three years. The continuing trends in labour
development and growing infrastructure and commerce are expected to dramatically
reduce unemployment and unskilled labour.
The increased opportunities for more foreign owned companies to invest and operate
in Vietnam is leading to higher interest in Vietnam company formation from
entrepreneurs all over the world. While company registration processes can be
difficult at times, the requirements have become more consistent. Company
incorporation agents are another way to improve efficiency of setting up your
business in Vietnam.
The Mekong Delta had an average GDP of 12.1% between 2006 and 2009. With
investors flocking to the country and with the economic development that is expected,
the increase by 2020 will be significant. Plans to improve the infrastructure are
expected, connecting the Mekong Delta to the entire country of Vietnam. Most
importantly, to the rest of the world, the industrial activity in Mekong Delta will be on
the map by 2020.
Healy Consultants Pte Ltd