Macro & Investment Insights

Asia: “Made in Vietnam”- Understanding the rise of Vietnam as an export powerhouse

  • 14 September 2021
  • 10min read

Key points

  • Rising globalisation has greatly benefitted emerging Asia as supply chain migration from developed countries fuelled the region’s tremendous export growth over the past decade
  • Vietnam has been a standout winner in gaining export market share in labour-intensive and low margin segments where China has lost competitiveness
  • The country’s attractiveness as a supply chain location is credited to its successful integration in international trade, geographic advantage, and manufacturing competitiveness – including cheap labour, and favourable government policies for foreign investment
  • Vietnam has successfully moved into the space created by China’s continued economic evolution. However, Vietnam’s relatively small size compared to China, means that it cannot replace China’s “world’s factory” title. Instead, as a close trading and production partner in China’s expanded supply chain ecosystem, Vietnam looks set to continue to thrive
  • COVID-19 disruptions, domestic policies, and geopolitical tensions could pose risks for Vietnam’s continued rise as a manufacturing and export powerhouse

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
    It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.
    All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.
    Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.