Vietnam Growth Masks Weak Local Firms in 2-Speed Economy
- Foreign-invested companies dominate exports as local firms lag
- Weak domestic sector a risk to country's long-term growth
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Vietnam’s export-driven economy is set to grow at its fastest pace in eight years in 2015 and it’s foreign firms in the country that are riding the wave, leaving local companies lagging far behind.
Foreign-owned businesses shipped 70 percent of Vietnam’s total exports so far this year, up from 44 percent five years ago, raising risks for the economy should any of those companies pull out. While the foreign sector posted exports growth of 21 percent in the third quarter from a year earlier, domestic companies saw a 10 percent decline, figures from Vietnam’s customs department show.