Vietnam's economic growth and development have recently garnered significant attention, showcasing its dynamic potential across various sectors. From agricultural exports to modern energy solutions, the country is strategically positioning itself on the global stage.
One of the shining stars of Vietnam's economy is its coconut industry. Once seen as simply agricultural produce, coconut products have evolved to become economic powerhouses, particularly for the Mekong Delta and south-central coastal regions. By entering billion-dollar markets like the US, Europe, and China, the industry is capitalizing on its strengths.
According to the Ministry of Agriculture and Rural Development, Vietnam has more than 200,000 hectares of coconut cultivation, ranked sixth globally among top coconut producers with nearly 2 million tonnes produced annually. This sector has expanded its export revenue from $180 million in 2010 to $900 million in 2023, with the expectation of surpassing $1 billion by 2024.
The Mekong Delta province of Ben Tre stands out as the coconut capital, with over 80,000 hectares dedicated to the crop. Many farmers have shifted from rice farming to coconut cultivation due to its lucrative returns. Huynh Quang Duc from the Ben Tre Department of Agriculture stated, "Coconut farming is not only profitable but also sustainable, boosting incomes for over 200,000 rural households." Given China's significant demand for coconut products, including fresh coconuts and coconut water, experts believe Vietnam's proximity gives it a competitive edge.
To maximize its coconut industry’s value, the government emphasizes strict management of production and export standards. Nguyen Phong Phu from Vina T&T Group noted the importance of protective measures to combat fraudulent practices and uphold the reputation of Vietnamese coconut products.
Meanwhile, in the energy sector, new collaborations are being formed to support the rise of electric vehicles (EV). Saigon Fuel JSC is initiating plans to work with VinFast to install EV charging stations at its gasoline stations across Vietnam. With the introduction of these charging points, the company aims to improve infrastructure for and accessibility to electric vehicles, as the country strives to transition to greener transportation.
At the same time, the HCM City People’s Committee is fostering trade and investment connections with Laos. The recent Vietnam-Laos trade and investment promotion forum highlighted bilateral trade reaching $1.5 billion as of September 2023, with Vietnamese investments in Laos totaling nearly $5 billion. This collaboration creates new opportunities for Vietnamese businesses eager to tap the Laotian market.
According to local officials, Vietnam plays a significant role as one of the top investors in Laos. The sectors of tourism, mining, and agriculture are key areas driving this growth. “We have substantial room for investment, particularly renewable energy and clean technology,” said Đinh Khắc Huy from the city’s Department of Planning and Investment.
Particularly noteworthy is the recognition of both Hanoi and Ho Chi Minh City for their untapped growth potential. A recent survey from Brand Finance rated Hanoi 16th and Ho Chi Minh City 25th globally, primarily due to their affordability, which has made both cities attractive for investments and living. Alex Haigh from Brand Finance remarked, "Vietnam's severe commitment to establish itself as a global force has positioned its cities high within these rankings.”
On the topic of sustainability, Vietnam is striving to integrate the circular economy within the construction industry. Recognizing its significant contribution to solid waste, the government has initiated various policies promoting recycling and eco-friendly materials within the sector. The aim is to reduce waste, conserve resources, and create job opportunities.
The Vietnamese government has outlined plans to treat 90% of urban construction waste by 2025, leveraging technological advancements and community involvement. Various pilot projects are being rolled out, especially across major cities like Ho Chi Minh City and Da Nang, using smart solutions and technological advancements to streamline waste management.
Vietnam's government encourages educational programs to raise awareness among businesses and communities about the benefits of circular economic practices. According to experts, the collaboration between local government, private sector, and civil society is key to achieving sustainable growth by maximizing resource recovery.
Overall, the story of Vietnam’s economic growth is not just one of numbers but also of the country’s determination to utilize its resources responsibly and sustainably. Whether through enhancing agricultural exports, establishing green energy solutions, or reinforcing bilateral ties, Vietnam is carving out its identity as a serious player on the global economic stage.
