Vietnam, the fastest growing country in ASEAN at 7.1% growth in 2018
Vietnam economy is predicted to exceed Singapore’s in 10 years by a DBS Bank report. In fact, Vietnam saw its economy grow by 7.1% last year, the fastest growth rate among all ASEAN countries. Singapore grew by 3.1% in 2018.
One reason for its strong economy is due to growth in several of its industries, increase in private investments, and the country’s competitive wage.
For instance, in less than a decade, Vietnam has become the second largest electronics exporter in the region. This is because the electronics industry is seeing more foreign investments flowing into the country, especially from leading players like LG, Samsung, and Microsoft as they move away from China.
Furthermore, Vietnamese policymakers are moving their focus away from growth rate to long-term economic sustainability and stability.
Seafood exports in Vietnam economy expand by 2.4% due to CPTPP
Other than the manufacturing industry, seafood industry in Vietnam also saw its exports grow by 2.4% to US$2.5 billion.
A reason for this is because of the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which reduced or eliminated tariffs on seafood. As such, exports to 10 members of the CPTPP rose by 15% year-on-year to US$502 million within the first four months. For example, exports to Mexico grew by 35.6%, followed by Malaysia (22%) and Canada (14%).
Consequently, many seafood firms in Vietnam economy are investing more infrastructure to capitalize on the opportunity. This includes buying more equipment and creating raw material production areas that meet market requirements.
China exempts tariffs for Vietnamese seafood exports
On top of the CPTPP, China has also eliminated tariffs for 33 kinds of Vietnamese seafood, including tiger prawns, clams, basa fish, and octopus, affecting more than 150 Vietnamese enterprises. The ease in import policy is expected to stimulate Vietnam’s seafood exports to China, and in consequence boost Vietnam economy.