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October 24, 2023

Unlocking Vietnam’s Potential

In the heart of the Mekong Delta in Vietnam, Delphos is assisting a circular farming and agro-processing company involved in harnessing the by-products of rice processing to create a sustainable ecosystem. This partnership is poised to set the stage for the establishment of agro-processing centers at the farm gate. This strategic move aims to achieve several important goals: to ensure a steady supply of quality products, reduce post-harvest losses, and boost the expansion of rice material cultivation, thus securing domestic supply and enhancing export output. Moreover, it will boost the income of over 70,000 households, and will create employment, especially for the youth in rural areas, thereby promoting both food security and economic growth.

As Vietnam continues to cherish its agricultural heritage, the nation has also embraced rapid technological advancement in the form of its burgeoning semiconductor industry. Vietnam has made substantial strides in establishing itself as a significant player in the global semiconductor market, offering several advantages for semiconductor manufacturers, including a skilled and cost-effective labor force, a stable political environment, and a strategic location within the Asian supply chain. Numerous international semiconductor companies have established production facilities in Vietnam, contributing to the country’s export-driven economy. The government has also been actively promoting research and development in the semiconductor sector, aiming to bolster domestic innovation and expertise. In 2022, revenue from the semiconductor industry in Vietnam reached USD 18.2 billion. This revenue growth is expected to continue with a forecasted annual growth rate (CAGR 2023-2027) of 11.03%, ultimately reaching a market volume of USD 26.20 billion by 2027.

At the same time, agriculture’s profound relevance endures because it is still a crucial source of sustenance and livelihood for many Vietnamese communities. This sector contributed a noteworthy 11.88% to Vietnam’s GDP, underscoring its economic significance. Moreover, the agriculture sector remains a cornerstone of employment, offering opportunities to 39.45% of the country’s workforce. Notably, key agricultural exports such as walnuts, coffee, and rice exceeded an impressive USD 5.7 billion in 2021. With a strong commitment to sustainable practices and a strategic emphasis on high-value exports, Vietnam’s agriculture sector stands poised for a prosperous and sustainable future.

Through active participation in international trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA), Vietnam has unlocked boundless opportunities for businesses on a global scale. Primarily, the United States ($99.3B), China ($57.8B), South Korea ($22.6B), Japan ($21.3B), and Hong Kong ($12.5B) have consistently ranked as the main destinations for Vietnam’s exports, further solidifying its prominence in international trade.

Delphos is also supporting a one-stop waste treatment and recycling company in Northern Vietnam. This collaboration will contribute significantly to environmental preservation and ecological wellbeing. By offering innovative waste treatment services, this company is effectively mitigating the risk of environmental contamination arising from mismanaged waste. Their practices safeguard ecosystems, curbing land pollution and soil degradation. As a result, they release approximately 30,000 gallons of clean water back into the environment annually, while also taking progressive steps to reduce carbon emissions. In addition, the company promotes extended producer responsibility by encouraging the responsible disposal of waste and the recycling of used materials.

Vietnam’s remarkable economic growth over the past few decades has positioned it as one of Southeast Asia’s most promising economies. Over the span of just two decades, from 2000 to 2022, Vietnam has achieved an astonishing eightfold increase in GDP per capita, soaring from under USD 500 to a remarkable USD 4,000 in 2022. With almost one hundred million people and projected real GDP growth of 5.8% in 2023, Vietnam stands ready to unlock its vast potential across a multitude of sectors.

Delphos is excited to be a part of this remarkable journey. As we look ahead, we see a nation poised for greatness, and we pledge our unwavering support to help Vietnam realize its full potential. Together, we will build a brighter, more sustainable future for all.

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