Vietnam Economy Strengthens

Vietnam saw its economy grow by 6.9% in the final three months of 2009. The government stated that the country “was passed the most difficult period”. Well, wouldn’t we in the UK or indeed Europe, just drawl at the thought of the 5.32% growth seen by Vietnam for the whole of 2009!

More importantly for Vietnam, the government has announced that it continues to actively prevent hyperinflation and indeed seems to have inflationary factors under control. There have been some real concerns that commodity and energy prices coupled with lower export orders would cause some problems for the Vietnamese economy. Any problems that did occur were short lived.

The government were frankly very creative in handling GDP growth challenges. Rather than print money they gave all workers a three month tax holiday. What a great idea (are you listening Gordon?). Seriously, this is really good news not just for the 86million people that live and work in Vietnam but for those doing business with this fast growing country.

As Vietnam take on the chair of the ASEAN region for 2010 (a sort of EU for south east Asia) the importance of economic growth and stability is vital. We see how important Vietnam is in the region through the way business is attracted to the country. Vietnam is fast becoming the number one choice not just for manufacturing, but for services. Harvey Nash lead the way in providing professional IT services from Vietnam.

With interest that has developed during 2009 it looks like we will be the “pied piper” for much more business from the UK, USA and mainland Europe in 2010. We don’t mind that really, we have a great software development business in the country. Blowing our own trumpet about it is never a problem.

January 4, 2010 04:08 PM | Permalink