Vietnam is the third largest market in Southeast Asia and one of the fastest-growing economies in Asia. Low costs and easy regulations are the key elements to attract foreign entrepreneurs. In this article, we present to you the top reasons why you should invest in Vietnam.
1 Strategic location
Located in the center of ASEAN, Vietnam has a strategic location. It is close to other major markets in Asia. Vietnam has its long coastline, direct access to the South China Sea and proximity to the world’s main shipping routes give perfect conditions for trading.
The country has two major cities Hanoi and Ho Chi Minh City. Hanoi, the capital, is located in the north and has extremely convenient trading opportunities. Ho Chi Minh City, the largest by population, is situated in the south and the city is the industrial area of Vietnam.
2 Doing business is getting easier every year
Vietnam has made numerous amendments to their regulations and that make Vietnam more interesting to invest. In terms of ease of doing business, Vietnam ranked 82 out of 190 countries compared to the previous year, the ranking improved by 9 points. This result in improving some criterias and conditions for doing business. For example, the Vietnamese government create an electronic system for businesses to pay tax easier. According to the World Bank report, the future prospects of doing business in Vietnam are very promising.
3 Trade agreements
Another indication of openness to the global economy are the numerous trade agreements Vietnam has signed to make the market more liberal.
Some of the memberships and agreements:
- Member of ASEAN and ASEAN Free Trade Area (AFTA)
- Member of World Trade Organisation (WTO)
- Bilateral Trade Agreement (BTA) with the US
- The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)
- Free Trade Agreement with the European Union (comes into effect soon)
All these treaties show that Vietnam is eager to promote the country’s economic growth and will continue its commitment towards trading with other countries. If you want to do business in Vietnam, we are here to help you. Please get in touch with us.