Vietnam Freight Transport and Shipping Report Q2 2016
BMI View: We expect Vietnam's freight transport modes to see robust growth in 2016, on the back of ahighly positive trade outlook for the country, with both imports and exports set to grow strongly. Thisgrowth will be supported by ongoing investment into the sector.Vietnam continues to be a regional growth outperformer on the back of continued export resilience, recordforeign direct investment (FDI) inflows, and strong domestic demand - all factors which will boost thecountry's trade and, in turn, its freight transport sector. According to the General Statistics Office (GSO),Vietnam's real GDP growth accelerated to 7.0% y-o-y in Q4 2015 from a revised 6.9% in Q3 2015, markingthe fastest quarterly growth rate since Q4 2010. We believe that Vietnam's strong economic growth trendhas further room to run, and are maintaining our forecast for real GDP growth to come in at a rapid pace of6.6% in 2016.Strong domestic consumption and low fuel prices, coupled with strong FDI and a notable uptick in exports,will trigger strong road freight growth of 7.9% in 2016. Over the forecast period to 2020, we expect roadfreight growth to outperform growth in other freight modes as Vietnam's roads will benefit the most fromthe more stable domestic economic environment, strong FDI inflows and the low oil price environment.
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