Vietnam sees 5 sectors of opportunity: report

Source: Xinhua| 2017-10-19 20:38:59|Editor: Zhou Xin
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HANOI, Oct. 19 (Xinhua) -- Business process outsourcing, solar and wind energy, luxury hotels, modern agribusiness and food, and retail banking are five sectors with tremendous room for growth in Vietnam, PricewaterhouseCoopers, multinational professional services network, stated in its latest report.

According to its report entitled "Spotlight on Vietnam" released on Wednesday, London-based PricewaterhouseCoopers said Vietnam's business process outsourcing (BPO) industry has grown 20 percent to 35 percent annually over the past decade.

The country is increasingly touted as the next BPO alternative to India and the Philippines. Some 40,000 new information technology Vietnamese graduates enter the job market each year.

Population growth, urbanization, and industrialization are driving an increase in domestic energy consumption. There is a pressing need to secure new sources of energy, especially solar and wind energy to support continued economic growth.

The number of new upscale and luxury hotels in Vietnam is still relatively low compared to other major tourist destinations in the region. Its increasing infrastructure connectivity will support the growth in tourism, which bodes well for the hotel industry.

Although agriculture accounts for 20 percent of Vietnam's total exports, sector productivity is relatively low. The Vietnamese government is looking to businesses to play a role in raising the sector's technology level and increasing farmers' access to modern technology.

Vietnam's middle class is growing fast. This rising affluence will drive demand for more complex banking products, such as bancassurance and wealth management. As a result, banks in the country are shifting focus from corporate banking to retail banking.

More than 90 percent of payment transactions in Vietnam are in cash; 27 percent of the population use debit cards, and less than 5 percent use credit cards. Cash may currently be king, but not for long, said the report.