Reports of Vietnam’s rapid economic growth have for many years been gaining coverage in the business sections of newspapers internationally. This transformation has certainly not gone unnoticed by foreign investors and a number of large global companies such as Nestlé and Unilever have identified Vietnam as a key strategic market for development over the next 10 years, investing heavily in the country.

Of course, such growth comes with its challenges and swiftly rising inflation has some foreign investors concerned about the volatility of the market. The consumer price index in Vietnam rose 22. 4 per cent for the year ended 30 September 2011 forcing manufacturers to reassess their wage payouts to ward off a potential backlash from workers struggling to keep up with the rising cost of living. Despite these challenges, sentiment has remained optimistic about the long-term prospects in Vietnam. With a population of some 88 million people on a disposable income growth trajectory, this optimism is hardly surprising.

http://www.exportincite.co.nz/news/2011/11/vietnam-%E2%80%93-a-market-with-growing-pains/ , Nada Young, Asia Market Manager, Incite.