VietNamNet Bridge - Information technology (IT) firms, seaport and real estate developers are expected to do well in 2016 despite challenges to the national economy.

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Securities firms’ analyses all say the banking sector will not see high growth this year, while technology, real estate, dairy production, seaport, electricity and textiles and garments will see a bright future thanks to free trade agreements (FTAs).

The government has decided that 2016-2017 will be the time for strengthening the application of IT in state agencies and businesses. It will step up the administration reform while utilizing technology in the management and providing public services online. IT must be utilized in 100 percent of public services by the end of 2016.

Securities firms’ analyses all say the banking sector will not see high growth this year, while technology, real estate, dairy production, seaport, electricity and textiles and garments will see a bright future thanks to free trade agreements (FTAs).
The higher demand from the private economic and finance sectors is also believed to bring high growth to the technology sector & communication in 2016.

BIDV Securities (BSC) believes that technology will especially enjoy benefits from FTAs

Regarding the seaport development sector, analysts predict the volume of goods to go through ports would increase rapidly in 2016 because the export markets would expand thanks to FTAs and to increased foreign direct investment (FDI) in export-oriented processing industries.

The strong recovery of the US and EU economies will lead to higher demand for Vietnamese export products such as garments, footwear and seafood, which will bring more jobs to seaport developers.

Analysts pointed out that a series of new policies would help the seaport development speed up. First, the new law allows the establishment of port authorities. Second, transport exchange will be established which will help better connect goods owners and service providers. Third, the state disinvests from seaports, accelerating the equitization of seaports.

Both Vietcombank Securities and BSC think 2016 will be a prosperous year for dairy producers thanks to stable selling prices and low input material price levels. 

Meanwhile, FTAs have not had big impacts on the competition in the domestic market. Under the commitments, the tax cuts will begin from 2018. 

Liquid milk products, the major products of Vietnamese enterprises, are expected to stay unhurt even if the tax is cut to zero percent. 

The competition in the powder milk market segment would be stiffer, but it would be mostly among import products.

Analysts shared the same viewpoint that the real estate market is entering a new growth period. They cannot see the real estate bubble’, though the number of transactions has increased rapidly.

Real estate developers aren't worried as demand is also increasing rapidly. It is expected that HCM City would have 57,000 more apartments by the end of 2016, while Hanoi would have 24,000 more.


VNE