Vietnam

HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.

Strong growth in Vietnam

Vietnamese businesses are on a high and it’s easy to see why. The economy hit a 10-year peak of 7.1% growth in 2018 and the HSBC forecast for 2019 is only slightly softer at 6.9%. The factors that are dampening the market are mainly external, while internally, middle-class income and consumption is growing, and the manufacturing and services sectors are surging. 

State of play

Powerful positive thinking

Companies in Vietnam are resoundingly confident about their future. The overwhelming majority of businesses (97%) believe their sales will grow in the next year, and over five years this outlook rises to 100%. The only other markets that are as optimistic as Vietnam are Indonesia, Bangladesh and India – with over 95% of businesses anticipating growth.

39% of Vietnamese businesses are considered high-growth firms – meaning they are expecting growth of 15% or more in the next year. This is almost double the number of high-growth firms measured globally (22%).

Vietnamese firms expect their growth to be driven by high-quality suppliers and raw materials (42%) and the emergence of transformative technologies in their sector (33%). They’re also putting an increased focus on the long-term sustainability of their business. 

97 %

The overwhelming majority of businesses (97%) believe their sales will grow in the next year

Expectations for future business growth

Expect sales to grow* - Next year
97%
Grow by 15% or more – Next year
39%
Grow by 6-14% - Next year
54%
Grow by 5% or less – Next year
4%
Expect sales to shrink – Next year
31%
Stay the same – Next year
0%

Next 5 years

Expect sales to grow

100%

Grow by 15% or more

43%

Grow by 6-14%

44%

Grow by 5% or less

12%

Expect sales to shrink

0%

Stay the same

0%

*This is the sum of grow by 5% or less, 6-14%, 15% or more.

What you need to know

  1. 1

    Over the next year, nearly all (97%) Vietnamese businesses expect their sales to grow, greatly exceeding the global (79%) and Asia-Pacific (77%) averages.

  2. 2

    Firms strongly believe international trade can drive innovation, provide new business opportunities and improve efficiency.

  3. 3

    100% of the Vietnamese businesses surveyed anticipate growth over the next five years.

What your business can do

  • Keep refreshing your strategy. Businesses in Vietnam are looking to improve the quality of their products and services and invest in new skills in their workforce.

  • Evaluate the impact transformative technologies will have on your supply chain. In the next three years, 32% of Vietnamese businesses are increasing their use of digital technology.

  • Focus your supply chain strategy on accelerating speed to market and moving closer to the end-consumer.