Telecommunications technology, agriculture and beverages have the most potential for growth among Vietnam's industries.
Telecommunications technology, agriculture, and beverages have been predicted by the FAST 500 report, released today by the Vietnam Report JSC, an independent company ranking the service and quality of companies in Vietnam, to record significant growth in 2016, with beverages already seeing dramatic growth over the last five years.
The beverage industry is considered to have potential because it has attracted significant amounts of foreign investment. Sales are expected to increase 7.5 per cent this year and in 2016. Revenue is to rise by 10.5 per cent as consumers are tending to spend more on expensive beverages.
Experts believe that beer will continue to drive the beverage market forward, in terms of both revenue and sales. Sales are predicted to increase 32.8 per cent in 2016. However, as incomes in Vietnam increase it is expected that drinking habits will shift towards alcohol of higher value.
Annual revenue is also increasing in telecommunications technology, but certain sub-sectors, such as computer repair, earn much less than in communications.
Vietnam Report also forecast that the telecommunications sector will have see intense competition in 2015 because the market has become saturated with more providers appearing because of Vietnam’s WTO commitments.
More investors are coming to Vietnam to invest in agriculture. Annual agriculture exports to the US have reached some $30 billion, accounting for 20 per cent the country’s total exports. Furthermore, the Trans-Pacific Partnership (TPP) will bring additional opportunities to Vietnam, especially in agriculture.
While agriculture has become a highlight regarding foreign investment the country’s agriculture sector must address challenges in technology, competitiveness, infrastructure, employee skills and low-quality export products. There are also challenges to be faced relating to climate change, rising sea levels, deforestation, and land erosion.
- Fast 500