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On the back of sound economic growth, a continuing inflow of foreign direct investment and a healthy labour force, the industrial base in Vietnam has been steadily expanding over the past two decades, with export-orientated manufacturing playing a major role within the overall economy. The potential for manufacturing in Vietnam is much higher than it was just five years ago. Recently signed free trade agreements are likely to further boost competition, as well as extend the country’s international reach, as manufacturers continue to view Vietnam as a low-cost alternative to China. This chapter contains interviews with Michael Behrens, General Director, Mercedes-Benz Vietnam, and Chairman, European Chamber of Commerce; and Mai Kieu Lien, CEO, Vinamilk.

Substantial hydrocarbons and hydropower resources have allowed Vietnam to be largely energy self-sufficient and supported rapid economic growth. Exploitation of its coal and the harnessing of rivers for hydropower has helped Vietnam meet double-digit growth in demand for power, providing almost universal electricity access to its people. Development of the country’s oil and gas reserves has seen it become a net crude oil exporter and meet its gas demand in full. High annual GDP growth – at an average of 7-8% over the past 20 years – and increased affluence among a growing population have led to soaring demand for energy. This chapter contains interviews with Duong Quang Thanh, Chairman, Vietnam Electricity; and Bui Ngoc Bao, Chairman, Vietnam National Petroleum Group.

Strong economic growth and demographic change are catalysing the rapid expansion of Vietnam’s insurance sector, with premiums growing at double-digit rates and likely to do so for some years to come. Thanks to successive liberalising reforms since the 1990s, a range of foreign insurers and investors are benefitting from this growth, and competition looks set to grow as new entrants eye the opportunities available. Awareness of the benefits of insurance is growing, particularly for middle-class families acquiring assets and planning for the future. This chapter contains an interview with Dao Dinh Thi, Chairman, BaoViet Holdings.

With economic growth, solid corporate earnings and a rising need for financing among domestic companies boosting stock markets and stimulating private equity activity, Vietnam’s capital markets have grown steadily in recent years. A wave of equitisation of state-owned enterprises is boosting the sector further, while a growing range of indices are broadening options for investors. A new unified index for both of Vietnam’s bourses – the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange – may presage a long-awaited merger, and support further product diversification. This chapter contains interviews with Vu Bang, Chairman, State Securities Commission; and Trinh Thanh Can, CEO, ACB Securities.

Robust economic growth, the easing of restrictions on foreign bank ownership and increasing technological sophistication have added to the dynamism of the Vietnamese banking sector in recent years, as the industry puts the mini-crisis of 2012 behind it. Recent years have been characterised by substantial credit growth, as well as ongoing measures to address bad debt. Banking penetration is relatively low – only around 30% of the population have a bank account – providing ample space for growth. Vietnam’s strong GDP growth outlook is the single biggest upside factor for the country’s growing banking sector. This chapter contains a roundtable with Nghiem Xuan Thanh, Chairman of the Board of Directors, Bank for Foreign Trade of Vietnam; Phan Duc Tu, CEO, Bank for Investment and Development of Vietnam; Natasha Ansell, Country Officer, Citibank Vietnam; and Pham Hong Hai, CEO, HSBC Vietnam.

Among the world’s most impressive emerging market success stories of the past three decades, Vietnam has been achieving high growth rates, encouraging a huge reduction in poverty and attracting billions of dollars of foreign investment. What was, until relatively recently, considered a comparatively poor country by regional standards – with an economy previously weakened by decades of war – is now solidly middle-income. If Vietnam is able to maintain its current momentum, it might potentially achieve high-income status within the coming few decades. This chapter contains interviews with Dinh Tien Dung, Minister of Finance; Le Luong Minh, Secretary-General, ASEAN; and Stephen P Groff, Vice-President for East Asia, South-east Asia and the Pacific, Asian Development Bank.