Having worked its way up, Vietnam is now in the game with other known big giants as a competitor due to the rising standards of their economy. The country has engaged itself in a variety of industries that have seen it reach where it is now. Among the many industries include the electronics industry, food processing and others. This article discusses the main economic industries in Vietnam.
The need for electronics globally rises rapidly with each passing year. Vietnam has taken the opportunity to invest in this industry. Although other foreign giants like Samsung and LG play a huge role in the industry, Vietnam still has benefited from it as the companies employ the locals.
Food processing industry
This ever-growing industry has the responsibility of meeting the demands of both local and international markets. It consists mainly of agricultural and sea products that are processed, canned, then exported, or used locally. The industry contributes to an approximate 15% of the country’s Gross Domestic Product. The abundant flow of the raw materials has seen Vietnam earn itself a place among the top food processing countries in the world.
In any country, the economy is characterized by the development of infrastructure. The increasing appetite for foreigners to invest in the construction industry has seen it thrive in Vietnam. The construction of offices, company warehouses, and apartments has led to this industry, contributing to over 39% of the Gross Domestic Product.
Natural resources are the stronghold of Vietnam. Responsible for over 8.1% of the country’s GDP, the mining industry plays a crucial role in the economy of Vietnam. Under the Vietnamese soil lies over 5000 deposits of minerals that are of high demand globally, answering the question of why this particular industry is thriving.
Service and tourism industry
Vietnam is home to the top 25 tourist destinations in the world. By attracting an increasing number of tourists each year, the industry plays a crucial role in the development of Vietnams economy. The tourist and service industry consist of hotel and transport services. The industry contributes to over 38% of the country’s GDP.
Banking and Finance industry
The government owns the largest banks in Vietnam, which has seen the sector play a considerable role in Vietnam’s economy. There are some foreign banks in the country, but the primary stakeholder is the Vietnamese government.
This industry is on its way up, thanks to the agreements between Vietnam and several other countries. Today, Vietnam has over 6000 textile industries, which had resulted in the employment of over 2.5 million locals.
Chemical fertilizer industry
The chemical fertilizer industry has its place well marked in the Vietnamese economy. The industry is valued at over 1709million USD last year, and it is expected to rise in the coming years. It can be concluded that the industry also has a considerable share of responsibility in the country’s economic development.
Oil and gas industry
The oil and gas industry has also been a pillar of the economy of Vietnam. Earning over 17 billion dollars since it’s the first drill, the industry is rising each year gradually. The rise has seen it contributing 1 billion dollars in the country’s budget each financial year.
Apart from revenue gains, Vietnams economic industries have provided employment and development of social amenities in the country. Vietnam now sits at the table with other prosperous countries in the world.