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VN will become Asia's electronics hub: HSBC

Update: February, 21/2012 - 09:41

HA NOI — The Hong Kong and Shanghai Banking Corporation (HSBC) has ranked Viet Nam seventh out of 10 countries seen as having the best prospects for long-term growth.

It also forecast that the nation could become Asia's next big electronics hub.

The announcements, made on the financial news website CNBC.com, forecasts how the economic landscape will change during the next 40 years.

The bank projected the country's annual growth at 5.2 per cent with its GDP rising to US$451 billion by 2050.

It said that Viet Nam was the world's second-largest exporter of rice and agricultural exports, however this was rapidly changing as the Government moved to liberalise and diversify the economy.

The HSBC report said that while State-owned enterprises contributed 40 per cent of the country's GDP, overseas investment had been increasing sharply since the country became part of the World Trade Organisation in 2007.

Viet Nam's low-cost manufacturing base had attracted a wave of foreign investors, particularly in the retail clothing and technology sectors, making it a cheaper alternative to China.

Intel, the first international technology company to make a major investment in the country six years ago, has helped raise Viet Nam's profile as an investment destination.

A long list of companies, including Samsung, Canon and Foxconn have followed, investing millions of dollars into developing manufacturing operations.

According to the HSBC report, analysts said this was helping to lay the foundations for Viet Nam to become Asia's next big electronics manufacturing hub. — VNS

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