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Vietnam continues developing as a high-tech hub, but must manage challenges.

Vietnam continues developing as a high-tech hub, but must manage challenges.

Vietnam has long enjoyed large investment and interest from high-tech sectors, with Intel, Samsung, Canon and others featuring prominently in the country. Boeing has begun investing into Vietnam, and recently organized an aerospace forum in the rapidly developing country. This recent Vietnam Express article discusses these investments. Many challenges and risks remain in the Vietnamese market, including, supporting industrial networks, professional skills development, and a difficult investment and business environment. Vietnam must actively focus on improving on these items to avoid the middle income trap.
The economy growth rate of Vietnam in 2022 is the highest since 1997's recession

The economy growth rate of Vietnam in 2022 is the highest since 1997's recession

Vietnam's economy grew 8.02% in 2022, which is the highest annual growth since 1997. It is the result of strong domestic retail sales and exports. However, economists warned Vietnam is facing headwinds ahead, with weakening global demand having already begun to impact shipments. Key export goods like textiles, footwear, and electronics have been especially affected. Consequently, Vietnam may face difficulties in boosting export and attracting foreign investment in 2023.

Read more in this article from Reuters
Vietnam has passed the UK to become the US's 7th largest trading partner

Vietnam has passed the UK to become the US's 7th largest trading partner

According to Bloomberg's article, Vietnam continues to climb the list of top trading partners of the U.S. Based on year-to-date 2022 data, Vietnam has passed the UL to become the U.S.'s 7th largest trading partner. The UL continues to struggle with the after-effects of Brexit and COVID. Vietnam, along with Mexico, continues to benefit from the US trade war with China and the resulting shift of US supply chains from reliance on China.
CPTPP Fuels Aeon Mall Expansion Plans in Vietnam

CPTPP Fuels Aeon Mall Expansion Plans in Vietnam

According to this article in VNExpress, Aoen, the largest retailer in Asia, plans to expand from six to sixteen malls in Vietnam in 2025. Aeon has invested more than $1.18B in malls and supermarkets in Vietnam. Also, Aeon is developing fast-fashion chain in Vietnam, competing directly with H&M and Uniqlo brands, as part of growth strategy in the most important market.

As a member of  Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Vietnamese government will ease the requirement for foreign investment to Vietnam, which will create more opportunities for foreign investors.

Download our new free report on entry requirements in Asia

Download our new free report on entry requirements in Asia

After 2 years of travel disruption due to the COVID-19 pandemic, many countries have gradually begun transitioning to a "coexisting with the virus" strategy. Some countries have begun to re-open their borders and economies.

PMI's "Asia Region Entry Procedures" report informs readers the current COVID-related entry and health regulations of certain countries in Asia.  We have included entry procedures for Vietnam, China, Japan, South Korea, Malaysia, Thailand, Singapore, and Indonesia.

Visit our website to download the full version: 
https://peregrine-management.com/CaseStudies
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