In: Operations Management
Analyse the trade performance (including trade in services), and investment opportunities of Vietnam. Provide your recommendations for Malaysia.
Thank you!
Answer:
Trade performance of Vietnam
According to trade statistics of Vietnam Customs, a 22.0% downwards in total external merchandise turnover of Vietnam was recorded in April 2020, as compared to the result of March 2020. Exports went down 27.1 %, to USD 17.58 billion and imports decreased 16.4%, to USD 18.52 billion in terms of month-on- month basis.
Investment opportunity in Vietnam
However, the above results are because of the surge in the international export and import activities as a result of the natural emergency created due to the introduction of Covid-19 pandemic. In the normal condition, Vietnam offers very good investment opportunities specifically in the sectors of construction business, beauty and cosmetics, agriculture and real estate business. The country remains one of Asia's more promising markets as it opens to foreign investment and buying property is arguably the best way to gain from Vietnam's economic rise as a whole. Vietnam has especially become competitive in its industrial sector.
Trade performance of Malaysia
Malaysia’s exports in October 2019 stood at RM90.59 billion, the highest monthly export value recorded in 2019. Exports contracted by 6.7% year-on-year (y-o-y) due to high base effect of RM97.12 billion in October 2018. Total trade decreased by 7.6% to RM163.86 billion and imports amounted to RM73.27 billion, a decline of 8.7% from October 2018.
Investment opportunities in Malaysia
Malaysia is a good option to invest in the businesses such as non metallic metal industry, textile and textile products, basic metal products, electrical and electronics industry, engineering support, food and sustainable resources, machinery and equipments.