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> The new roaring dragon!
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The new roaring dragon!
Making strides as a global destination for foreign investments
Any growing economy is ought to be mentioned (at least somewhere) as New China, and Vietnam is no exception. Since 90s Vietnam had been the second fastest growing economy, just after China (again!). What’s more, it is poised to clock an annual growth of 8%-10% upto 2015. Playing upon the ‘de-risking card’, it is attracting investments from MNCs that are hesitant to invest more in the capricious China.
This once war-torn economy now has GDP accelerating at 8.5% annually. From Intel to Microsoft, most of big IT players are pumping huge amounts of money. The State too is leaving no stone unturned to lure the investors as is witnessed in the enactment of bankruptcy and intellectual property laws in the recent periods. To support the investment drive, the infrastructural development is also taking place at an unprecedented pace, wherein the government is investing around 10% of GDP on infrastructure. Vietnam’s competitive advantage over China has been its English speaking young population whereby the youngsters are not only well educated but employable. Moreover, the domestic market for software and technology services has been instrumental in creating a successful outsourcing market. This had made Vietnam shift its headlines from political pages of newspaper to business pages.
Today, this nation takes pride in having more than 750 software firms, employing not less than 35,000 engineers. This economy is gradually becoming the best choice or outsourcing and service industry. Moreover, the operational (power, electricity & transportation) and labour costs is comparable to other outsourcing hubs around the world. With 94% literacy and more than 60% population falling into the working age group, Vietnam emerges as a competitive destination for outsourcing services. The software sector itself is growing at around 41%, thus contributing largely to the economic success. With pro-active governance, favourable demographics, outward orientation, on-going privatisation & an entrepreneurial climate, growth in the coming years remains broadly favourable.
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