CBRE - Vietnam Market Insights Q1 2015

In Q1 2015, Vietnam's economic growth increased to an annual rate of 6.03%, the highest rate for the last three years. The country’s growth model continues to be driven by increasing industrial production and foreign investment. 80% of FDI capital, mostly originating from South Korea, was invested into the manufacturing and processing industry. With average wages still well below those of some of its Southeast Asian neighbours, many companies have shifted their off-shore plant to Vietnam in order to become more cost-effective. Mobile phones have become Vietnam's main export item thanks to investment from Samsung, contributing 14% of total export value. Following Samsung, LG Electronics Inc. will soon shift its television production from Thailand to Vietnam for logistical and efficiency reasons. For the first three months of 2015, South Korea surpassed 32 other countries and territories to become Vietnam’s leading source of FDI.

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