Hong Kong agency highlights Vietnamese market potential

CA - The Hong Kong Trade Development Council (HKTDC) has released a report highlighting the Vietnamese economy’s growth and potential and describing the country as having a good investment climate.

In its report entitled ‘Vietnam-a fast growing market in ASEAN’, HKTDC said Vietnam has a growing middle-income class with an increasing demand for high-quality goods and services.

HKTDC survey shows that Hong Kong’s products, especially home appliances, are popular among middle-income Vietnamese consumers. HKTDC suggests Hong Kong companies should take advantage of this to boost their trade with the Southeast Asian country.

HKDTC remarked that despite the financial meltdown, the Vietnamese economy remained sturdy with a GDP growth rate of 5.3 percent last year, the highest rate among ASEAN members. The economy grew in this year’s first quarter and the International Monetary Fund is optimistic about it in the remaining quarters of 2010.

According to the report, apart from being a promising consumer market, Vietnam is also emerging as an alternative production base. In the face of rising production costs in the Chinese mainland, Hong Kong manufacturers should pay more attention to Vietnam, which has a young workforce and cheaper labour costs.