14 July 2015 Author: Suiwah Leung, ANU

Eastasiaforum– Unlike many countries in Asia, and indeed in the world, Vietnam is for the moment blessed with a raft of positive economic news. But beneath the surface, structural problems and a lack of industrial deepening persist.

Exports have been growing at 18 per cent year-on-year and 10 per cent year-to-date. Disbursements in foreign direct investment rose by some 9.6 per cent year-on-year with Samsung, in particular, manufacturing not only its smartphones but also TV and computer screens in Vietnam.

The PMI (purchasing managers’ index) has been consistently above 50 in the June quarter, indicating continuous expansion in the manufacturing sector. Furthermore, the leading indicator — new orders minus inventory — rose sharply, suggesting that there will be a pick-up in production in the second half of 2015. Tiếp tục đọc “Strong export growth in Vietnam masks underlying challenges” →