Vietnam Or The Next Country That Rises On The "World Factory".

China has been pushing ahead. World factory "The name is for many years, and the next one to inherit this identity will be Vietnam, which has an area of about 330 thousand square kilometers.

It is reported that foreign capital strength is increasingly common in this long and narrow country. In 2015, foreign direct investment in Vietnam hit a record high again this year. Despite the global economic weakness, the volume of transactions in the first half of the year amounted to $11 billion 300 million, up 105% from the same period last year.

Since the 90s of last century, Vietnam's economic growth has been maintained at around 6% yen, second only to China, making Vietnam transition from the middle income countries in the poorest countries of the world. If Vietnam can guarantee another ten years of economic growth of 7%, its development trajectory will be similar to that of China and the past four Asian dragons. Of course, another outcome is the growth rate falling back to 4%, becoming a mediocre outcome like Thailand and Brazil.

At present, Vietnam's per capita GDP has exceeded 1000 US dollars, among which there are many freedoms. Trade The agreement is a great help. After its accession to the TPP (trans Pacific Partnership Agreement) agreement, even though the agreement itself may fail, Vietnam has launched its own "function" to the world. Its free trade agreement with the EU is being planned, and the free trade agreement with South Korea will take effect in 12 this year. Vietnam's own attitude towards trade also gives foreign capital confidence: according to the policy, Vietnamese foreign investors only need to pay 1/4 of annual capital expenditure.

Geographical location is a major advantage of Vietnam. Vietnam is located in the south of China. The location of the past military key points has now become a competitive chip. Because China's manufacturing hinterland is concentrated in Southern China, as China's labor costs rise, Vietnam has become the best substitute for low-cost manufacturing. Especially entrepreneurs want to solve China in the near future. market Perfect supply chain.

In addition, the relatively young population structure also increased Vietnam's capital strength. The 70% Vietnamese people in Vietnam live in rural areas and are equal to India. This is one of the favorable conditions for developing labor-intensive industries. From 1 to July this year, Vietnam attracted overseas investment of 8 billion 550 million US dollars, an increase of 17.1% over the same period last year.

Vietnam also nurtured talent in Thailand, Indonesia and Malaysia. In the global education rankings, 15 year old Vietnamese students perform better in mathematics and science than in the United Kingdom and the United States. The state's expenditure on public education accounts for about 6.3% of GDP, and factories need to read, count, and operate machine with complex instructions.

However, unlike Thailand and Brazil, which are trapped in the middle income trap, Vietnam still needs to solve the domestic problems of the state owned zombie enterprises and Vietnam Bank's non-performing loan ratio, which is controlled by China's control over high-end exports, and it is difficult for Vietnam to produce high value-added products. 2017 years later, the world bank will gradually cancel the preferential loans. After being classified as a middle-income country, Vietnam will lose the preferential policy of financing from the development bank.

After years of steady growth, Vietnam has the chance to become Asia's next great success story.