INSIGHTS
Vietnam’s economic growth continues to boom, but it feels the growing pains of inflation and a depressed currency. John Shi, a&s Editorial Director, explores key trends in security and hot market segments.
Vietnam: Maintains Momentum Despite Economic Hurdles
Date: 2011/09/07
Source: The Editorial Team
CAUTIOUS OPTIMISM FOR 2011
Security players are confident 2011 will yield stronger growth compared to 2010. “We grew 60 percent growth in 2010 and expect to have 80 to 90 percent growth in 2011,” said Trinh Xuan Vinh, Vice Director of Business, Viet Hoa Electronics. While government projects are slightly down, private security business continues to be brisk.
Panasonic enjoyed strong sales growth of 30 percent in 2010 and expects that to increase to 50 percent in 2011, said Minh Cuong Nguyen, Sales and Marketing Executive, Panasonic Systems APAC. This is from its many IP video projects throughout Vietnam.
With the falling value of the Vietnamese dong, public projects will see a slowdown. “Inflation has resulted in the government setting tighter lending policies,” Vinh said. The exchange of US dollars is being controlled, resulting in higher import costs that directly affect importers and distributors. Nearly all equipment is imported, although there are notable exceptions of local manufacturing.
Vietnam is developing into a pivotal security market. As it faces the growing pains of a booming economy, Vietnam is emerging as a land of opportunity