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Vietnam’s agribusiness sector is facing growing challenges as farmers begin to face land and labor constraints and as end markets become more demanding. Production of rice, coffee and rubber could decline, according to researchers at analyst BMI, but the medium-term prospects for the agro-processing and livestock sectors are good as domestic consumers diversify their diets and as the sector takes advantage of recently concluded free trade agreements.
Vietnam’s economy continues to grow strongly, according to London-based Capital Economics. The firm said a pick-up in the manufacturing sector and solid export growth were helping drive the economic expansion, but a concurrent rapid increase in debt levels could cause problems. “Credit booms on the scale that Vietnam is experiencing are not sustainable over the long term,” the firm noted.

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