In a relatively short space of time, Vietnam has emerged from a history of conflict, partition and poverty to become an industrialised, exporting powerhouse. The economy grew by 6.2% last year, and is likely to expand by a further 6.7% in 2017. Following closely in Vietnam’s footsteps is Myanmar. One year on from the election of its first democratic government, the country is leaving behind decades of political isolation and military dictatorship. Engaging in trade with the outside world is expected to help generate GDP growth of above the 7% mark over the next few years.
But with both nations’ trade largely flowing to China – where growth is flattening – a change of course may be required. In an article for Trade & Forfaiting Review, Agnes Vargas, Regional Head of Greater China & ASEAN at Commerzbank, argues that, by diversifying exporting options beyond their tried-and-tested market, Vietnam and Myanmar may better sustain and build on their new-found prosperity.
Read the article, “Trading Friends” here.