According to a report by market research company Euromonitor International, Vietnam’s rapid development in recent years has been due to rising industrial output, robust exports, growing domestic demand and strong foreign investment.
The agricultural, manufacturing and services sectors are all major contributors to the economy. With companies including Samsung, Intel and Siemens investing significantly in the country, Vietnam has also become a hot spot for technology manufacturing in the region.
Manufacturing and electronics multinational Siemens started operations in Vietnam in 1979 and opened an office there in 1993. Since then, it has increased staff numbers from 10 to 300. Dr. Thai Lai Pham, President and CEO, Siemens Vietnam, says the company has developed a significant presence in many sectors, including power-plant supply, electrical infrastructure, health care imaging devices and industrial automation. This has helped it grow in Vietnam by an average of 25% over the last four years.
Dr. Lai says Siemens regards Vietnam as strategically important, as it is one of only nine “second wave” global emerging economies that the company has identified – the first wave being Brazil, Russia, India and China. “Demand is very strong in areas we cover, such as energy, automation, transportation and health care,” he says. “Vietnam is well placed to compete with other emerging economies in the region, and infrastructure will be key to growth.”