Foreign direct investors have been flocking to Vietnam due to a fast-growing retail industry, driven by the electronics sector, as growth in their own home countries have slowed down.
Vietnam welcomed an estimated US$13 billion of newly registered capital, according to the VnExpress, in the first half of this year, up 1.5 times from 2015. Retail accounted for nearly 40 percent of total deals in the country since last year.
It is also beginning to establish itself as a major manufacturing hub for electronic goods. In terms of foreign direct investment (FDI), Vietnam ranks fourth behind India, China, and Indonesia. Altogether, the four APAC countries have a combined FDI value of US$320 billion.
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Electronic retailers are experiencing a huge boost in growth. The biggest private tech firm in the country, FPT Corporation, are the most obvious indicators of such growth, thanks especially to a younger population keen on investing in the latest gadgets.
According to Deal Street Asia, FPT recorded a revenue growth of 35 percent in the first quarter of 2016, and will have built over 300 outlets by the end of this year.
A report by Business Monitor International (BMI) said: “Vietnam’s consumer electronics industry has expanded rapidly in recent years and is an important force driving the country’s strong economic performance.”
The report also added that electronics sales in Vietnam are expected to grow 28.6 percent from US$6.3 billion in 2016 to US$8.1 billion in 2020.
(Source: Tech Wire Asia)