Vietnams Market Potential

Vietnam’s Market Potential

Market opportunities in Vietnam for consumer and industrial product companies:

Vietnam a densely populated and developing country, achieved a substantial progress from the year 1986 to 1997. The Asian financial crises in 1997 created problems in the Vietnamese economy and for the time being allowed the challengers of the reform to slow the growth and development toward a market-oriented economy. This period ranges from 1997 to 2004 and economic growth slowed down from 9 % to 6.8 %. In the year 2005, the growth rate hits 8% and 7.8% in 2006. Moreover, it is a member of ASEAN Free Trade Agreement (AFTA) and WTO. This ensured boost to the economy and continuation of liberalizing reforms. It also entered into the force of US-Vietnam Bilateral Trade Agreement in December 2001.

Poverty rate has declined significantly and is less than that of China, India Philippines. Monetary and fiscal policies have been tightened by Vietnamese authorities to stem high inflation. The targeted economic growth for the next five years is 7.5%-8%. Labor force over there is growing by more than one million people every year and the economy is trying to create more jobs to meet this challenge. Food processing, shoes, garments, machine building, coal mining, steel, chemical fertilizers, cements, oil, paper, glass and tires are the major industries in Vietnam. Machinery and equipment, petroleum products, fertilizer, steel products, raw cotton, grain, cement, motorcycles are major import commodities.

Thus, on the basis of the above information, we can say that there are high opportunities for both the consumers and industrial products’ companies in Vietnam. Liberalization reforms continuity, stability in inflation, decreasing poverty rate, future target of economic growth, optimum utilization of available resources, etc. depicts a high potential for the industrial as well as the consumer products companies in Vietnam. . For...