According to independent assessments, Vietnam’s gross domestic product (GDP) growth will reach 6-6.5% this year. With this success will come growth in all sectors of the economy, such as exports, manufacturing, tourism and domestic consumption[1].
Vietnam is one of the fastest growing economies in Southeast Asia. According to official data, in January 2024, Vietnam’s exports grew by as much as 42% year-on-year, and the trade surplus widened to $2.92 billion. In 2023, GDP growth was 5.1%, according to Vietnamese data. Key to its success is a large and diverse manufacturing base and a skilled, but still relatively cheap, labor force[2].
In Vietnam, Polish products are associated with European quality at competitive prices. In 2022, Poland’s trade turnover with Vietnam amounted to $5.37 billion, an increase of more than 13% compared to 2021. Polish exports to Vietnam reached the value of more than $486 million.
Vietnam is a market with great potential. The country is home to more than 100 million people, whose purchasing power is steadily increasing. In addition, the middle class is developing quite dynamically. Due to its long-term prospects for rapid development and progressive trade integration with the world (membership in ASEAN, EU-Vietnam FTA), Vietnam seems to be a particularly interesting destination not only for exporters, but also for investors. During last year’s intergovernmental talks on trade exchange, the Vietnamese side emphasized its interest in Polish investments in the pharmaceutical, agro-food and manufacturing industries, as well as in the development of cooperation in science and technology[3].
– Vietnam is increasing its coal output every year, and we have been trying to be in this market for twenty-some years and participate in its development and modernization. Vietnam is also developing economically. There is a noticeable increase in exports and demand for equipment and machinery, especially highly processed equipment. You can observe this situation for many years, it is quite stable and I think that the prospect of cooperation between Polish and Vietnamese companies will develop. – explains Henryk Stabla, CEO of PKiMSA “CARBOAUTOMATYKA” S.A.
To know and understand, it’s worth seeing
This April, EXPO Katowice is organizing a trade mission to Vietnam’s International Mining, Mineral Extraction and Construction Exhibition, which will be held in Hanoi from April 24 to 26, 2024. – This is a unique opportunity for Polish entrepreneurs who want to be present in a country where companies from South Korea, the USA or Japan are investing. Both from traditional sectors such as mining, machinery and cable industry, as well as from modern ones related to automation and control and cyber security. Today, Vietnam is in the top league of the fastest growing economies, and it would be good if Polish companies could take advantage of this. Let’s not forget that the country is considered a promising market for new areas of cooperation, such as energy transition and the development of renewable energy sources – says Iwona Gramatyka, CEO of EXPO Katowice.
One of the strategic directions for the development of the Vietnamese economy is the exploitation and, in the future, the refining of an estimated 22 million tons of rare earth resources. This is also an opportunity for a number of Polish universities and companies, which have unique knowledge and experience in the area of exploitation of various natural resource deposits.
– Poland on the Mekong is represented by about 30,000 permanent Vietnamese living in our country and at least as many Vietnamese who have graduated from Polish universities. It is hard to overestimate this capital, which can definitely facilitate the establishment of trade and investment contacts. Today is the right time to look at this market and consider what benefits can be achieved there. That is why we decided to organize a business mission to Vietnam – explain Iwona Gramatyka, CEO of EXPO Katowice.
According to a Bloomberg analysis titled “These Five Countries Are Key Economic ‘Connectors’ in a Fragmenting World,” Poland, along with Vietnam, Mexico, Morocco and Indonesia, is poised to become an important link in a global economy that is fragmenting into rival blocs. According to Bloomberg, these five countries are strategically positioned to take advantage of changes in global supply chains.[4].
The report Direction: East Current Trends and Attractive Destinations for Foreign Expansion in the Face of Geopolitical Turmoil, prepared last year by PwC and PFR TFI in cooperation with KUKE, ranks Vietnam among the most attractive countries for Polish foreign investment.
[1] https://fr.nhandan.vn/les-perspectives-de-croissance-economique-du-vietnam-post87357.html, accessed 4.03.2024.
[2] https://fr.vietnamplus.vn/the-interpreter-apprecie-la-resilience-economique-du-vietnam/219394.vnp, accessed 4.03.2024.
[3] https://fr.vietnamplus.vn/ide-le-vietnam-soigne-toujours-son-attractivite-en-2024/218686.vnp, accessed 4.03.2024.
[4] https://moto.rp.pl/tu-i-teraz/art39386251-w-tej-dziedzinie-jestesmy-numerem-dwa-na-swiecie-wyprzedzaja-nas-tylko-chiny, accessed 4.03.2024.