Viet Nam in 2050
In our World in 2050 report, we projected that by 2050 Viet Nam could be among the Top 20 economies in the world and Top 10 in Asia. The average real GDP growth of Viet Nam could reach 5.1% p.a. between 2016 and 2050.
Going forward, the following growth engines are expected to enhance opportunities for investors in Viet Nam:
- Young and growing workforce: Viet Nam has a growing educated workforce and is now in a period of golden population structure, where 45% are under 30 years of age.
- Competitive economy, beyond low cost: By and large, the labour force in Viet Nam is cost-competitive, educated and increasingly skilled. This offers greater value and serves as an ideal production base for companies thinking of shifting or diversifying out of larger economies such as China.
- Government committed to growth: Viet Nam has a stable socio-political environment and hence predictable policies in business and trade. The government is also committed to creating a fair and attractive business environment for foreign investors.
Business process outsourcing
Information and communications technology (ICT) is a booming sector in Viet Nam. Viet Nam’s ICT master plan targets to turn the nation into a developed economy in ICT by 2020. Within the ICT sector, business process outsourcing (BPO) is a particularly interesting industry that is poised for growth.
Read our report to find out whySolar and wind energy
Viet Nam is looking at new renewable energy to accommodate the growth in electricity demand. As Viet Nam is a net energy importer, renewable energy will also help reduce the stress of energy imports (coal and gas) on its trade balance of payment. Our report looks at two emerging forms of renewable energy in Viet Nam: solar and wind.
Read our views in our reportLuxury hotels
Viet Nam’s tourism sector is expected to become a key contributor to the economy and its growth. Within tourism, we see the upscale and luxury hotel industry—those rated as four stars and above—as relatively untapped and having the greatest potential for investment.
Download our report to know moreModern agribusiness and food
Agriculture is still a major economic sector in Viet Nam despite its move away from an agrarian economy. For foreign players, the opportunities lie in helping to modernise agribusiness and food in Viet Nam, i.e. bring in modern food production techniques that employ high quality inputs, modern machinery and processes, and improve the food and beverage value chain.
See more in our reportRetail banking
Viet Nam’s banking and financial services sector is undeveloped but boasts high growth potential. Within this sector, we foresee room for growth in retail banking, in particular payment cards and wealth management services.
See what Viet Nam has to offer in our reportWinning in Viet Nam
Foreign companies seeking to capture Viet Nam’s advantages and opportunities will need to invest and develop local resources and capabilities, as well as navigate existing business challenges before they can secure their future and success in Viet Nam.
To turn their investments in Viet Nam into a success, businesses will need to plan and develop their capabilities around three broad domains:
- Create a localised go-to-market strategy by spending time to understand the local people and market
- Build stakeholder trust by showing the commitment to invest in Viet Nam for the long-term
- Invest in local talent by training and placing trust in them
In their own words
We invited PwC UK's Chief Economist John Hawksworth and several CEOs of locally based foreign companies to share their thoughts on Viet Nam - the prospects they see, the challenges they face and their keys to success.
