World Economy

Vietnam Emerging as Manufacturing Powerhouse

Vietnam Emerging as Manufacturing PowerhouseVietnam Emerging as Manufacturing Powerhouse

From mobile phones to furniture, Vietnam’s export boom shows no signs of losing steam, defying a gloomy outlook at the beginning of the year when President Donald Trump persisted with his trade threats, Yahoo reported. Furniture maker Xuan Hoa Viet Nam Co. is planning for a 20% increase in export orders next year by investing $3 million on equipment to expand production, General Director Le Duy Anh said in an interview. When Trump pulled the US out of the Trans-Pacific Partnership in January, it was seen as a blow to Vietnam, which exports about a fifth of its goods to the world’s largest economy.

Instead, a global trade recovery and Vietnam’s young and low-cost workforce have been magnets for international investors like Nestle, which have opened factories in the country this year.

That’s helping underpin its economy, which expanded 6.81% this year, among the fastest in the world. “We’ve seen Vietnam’s coming of age this decade with its rapid transformation to a manufacturing powerhouse,” said Eugenia Victorino, an economist at Australia & New Zealand Banking Group in Singapore.


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