Vietnam is the third largest market in Southeast Asia and one of the fastest-growing economies in the world. Low costs and regulations that encourage foreign investment are only some of the key elements that attract foreign entrepreneurs. In this article, we present to you the top reasons why you should invest in Vietnam.
Located in the center of ASEAN, Vietnam has a strategic location. It is close to other major markets in Asia, the most notable neighbor of them being China.
1 Strategic location
Its long coastline, direct access to the South China Sea and proximity to the world’s main shipping routes give perfect conditions for trading.
Two major cities in Vietnam are 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 is the industrial mecca of Vietnam.2
2 Doing business is getting easier every year
Vietnam has made numerous amendments to their regulations to make investing in Vietnam more transparent.
In terms of ease of doing business, Vietnam ranked 82 out of 190 countries in 2016. Compared to the previous year, the ranking improved by 9 positions.
This rise was the result of improvements in some processes of doing business. For example, the government made the procedures of getting electricity and paying taxes easier, according to the World Bank report.
Based on their economic models, Trading Economics predicts Vietnam to rank 60 by 2020. Hence, the future prospects of ease 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.