Vietnam Industry Sectors

 

 

The actual industrial growth in Vietnam for the first quarter 2009 exhibits slight slowdown in key industries. The processing industry’s output has exceeded 67% (compared to last year). For instance, steel products have seen a growth of 2.6 times; ceramic tiles: 55 percent; and apparels: 76 percent higher than the figures in 2008.

Although the primary sector produce mainly contributes to the export item inventory, the Vietnamese government is strongly working towards expanding its industrial base.[br]

 

Vietnam Industry Sectors: Key Players

The main industries in Vietnam are:

 

Food processing: The government of Vietnam is implementing several programs to increase the production of rice, corn and tapioca, and enhance food processing technologies. The country has already become a food product processing hub with an annual growth rate of 20-30%. The changing food habits of locals, who tend to use preliminarily-treated foods for making meals, are increasing the demand for processed foods. Although, according to the Processed Food Market in Vietnam report by RNCOS, the country’s food processing business is highly fragmented; it is anticipated that the business will consolidate soon with new openings in the market and increased growth opportunities for foreign companies.

 

The availability of processed and packaged foods in Vietnam will increase as modern food retailing businesses expand their operations to meet the rising demands from affluent consumers. The report also states that despite the growing domestic demand, the Vietnamese food processing industry is dominated by seafood and agriculture products. Seafood export includes shrimps, Tuna and Tra fish.[br]

 

Construction: A key industry in this period, the construction sector has altered dramatically in the recent times. Several recently constructed buildings enhance the appearance of the urban landscape, and the construction equipment too live up to the international standards. The construction segment plans to expand housing till 2020, targeting 30-32 million sq. meters of construction area within the country and 12 sq meters of living space for each individual. Vietnam also has ongoing projects to support housing foundations, handle flooding in the central coastal region and the Mekong Delta, develop real estate market, register transactions and create centralized information system to facilitate overseas Vietnamese to purchase housing in the country.

 

Manufacturing: Vietnam, the fastest growing ASEAN economy, is host to the Saigon Exhibition and Convention Centre (SECC) 2010. The country is steadily becoming the global manufacturing center. Its plastics and rubber industries are developing quickly to serve a diversified industrial base. Despite the turbulent international economic conditions, Vietnam is predicted to grow by 6.5% in 2010.