Securities company KB Securities projected Vietnam’s GDP growth in the fourth quarter of 2019 to reach 6.95 - 7%, leading to the whole-year growth at nearly 7%.

Vietnam is predicted to obtain the highest GDP growth rate in the region, but it is exposed to risks from the effects of global economic tensions.

The technology market is heating up after Samsung splashed out $40 million to buy 30 per cent of CMC Corporation, the second-largest IT company in Vietnam, to jointly develop AI and Internet of Things solutions.

Xiaomi takes over third place from Huawei in second quarter as top 2 remain unchanged.

Samsung repeatedly affirmed that Vietnam is its largest global strategic base not only for production but also for research and development.

Samsung has affirmed that it will continue us to choose Vietnam as its biggest production base, from which Samsung’s mobile phones will go to the world market.

While some economists warned of the possibility of Vietnam lagging further behind regional countries, others believe that Vietnam will still perform well.

Vietnamese enterprises are still hoping to become vendors for Samsung, but need to change their ways of doing business if they want to succeed, analysts say.

VietNamNet Bridge - After December 31, 2018, Samsung’s hand-held devices will no longer be produced in Tianjin, China, where its second largest factory operates.

VietNamNet Bridge - The slowdown in demand for mobile phones may affect Samsung's operations in Vietnam, which could affect the domestic economy. 

VietNamNet Bridge - Only 14 percent of Vietnamese private enterprises are supplying goods and services to foreign invested enterprises (FIEs).

If a third Samsung facility is built, Vietnam will be involved more deeply in Samsung’s huge supply chain, according to Nguyen Van Toan, deputy chair of the Vietnam Association of Foreign Invested Enterprises (VAFIEs).

Any changes to be made by Samsung are expected to have an impact on Vietnam because of its high contribution to the country’s export and GDP growth. 

Emerging brands have been taking action to strengthen their presence in the domestic smartphone market. However, the face of the market is expected to stay the same in the near future.

Huawei, Xiaomi and Nokia launched new products recently to compete with Samsung and Oppo, the two big players in the mid-tier market segment. 

 Samsung Electronics expects to post record operating profit in the third quarter, helped by strong demand for its memory chips.

The domestic market is being dominated by foreign brands, but Vietnam-made products are still available, targeting low-income earners.

Vietnamese businesses cannot squeeze into foreign conglomerates’ global production chains, even though they can make products satisfying requirements by importers in developed countries.

VietNamNet Bridge - Vietnamese technology engineers are respected in multi-nationals as they have high qualifications and work hard.

Vietnam has become an important production base where valuable industrial products such as mobile phones and tablets are made. However, Vietnamese enterprises still cannot find positions in global supply chains.