Vietnam’s rise to prominence

Vietnam is emerging as a significant economic competitor to China and this article in the Sunday Times gives a flavour of their rapid development. The economy has become more open and is now attracting huge inflows of foreign direct investment which in turn is reducing unemployment and generating a surge in manufacturing capacity that is providing a platform for sustained export growth. British firms are increasingly looking to Vietnam as a location for direct investment and also as a market for a range of business and financial services.

‘Vietnam gained admission to the World Trade Organisation last year, which triggered a huge surge in foreign investment commitments of more than £6 billion. The value of UK investments in Vietnam is more than £1.25 billion, according to British Embassy statistics. While British exports rose 17% in 2006 to more than £95m, the trade deficit is more than eight to one in Vietnam’s favour. However, Britain reaps invisible earnings from banking and financial services’