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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

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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.

 

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