Vietnam Exceeds Economic Growth Expectations
2016 was very shiny for Vietnam economically, and its value in the international market grew rapidly as many considered investment opportunities in the country. It excelled at the economic predictions for 2016 and moved rapidly up the economic scale, while the rest of Asia, countries like China or India, experienced an economic slowdown in the same year. For the second year in a row, Vietnam achieved a 6% economic growth becoming the manufacturing hub for many international businesses.
Predictions for 2016 projected a growth of 6.1%, but Vietnam surpassed the forecasts as statistics have shown a growth of amazing 6.21%. The same happened with the country’s GDP, as it was predicted to grow by 6.56, and in reality, it grew by 6.68%.
In 2016, despite the slowdown of countries like China and Singapore, which are also Vietnam’s trading partners, Vietnam managed to keep its exports sound and at a solid rate. The latest trend of international companies to open plants in Vietnam also contributed to the country’s growth, like smartphone production and others.
Vietnam was flourishing in 2016, and many predicted an ongoing economic growth especially due to foreign investors who are looking for a competitive labor market and affordable labor force. 2016 also showed a trade deficit of $300 million, whereby the surplus reached $2.68 billion. Retail sales and manufacturing also marked significant growth, and the percentage of foreign investment also reached 9%.
Vietnam was expected to continue its growth, but in 2017, it came to a slowdown and in Q1 2017, Vietnam performed below projections and estimates. As a matter of fact, it reached a three-year low. Exports grew more than expected, and the GDP declined significantly if compared to last year. Even the retail figures dropped. The drastic drop is a result of numerous factors, including a weakened Asian economy as a whole in the last year.