Why invest in Vietnam?
1.Favorable geographical location.
The East and the South: Vietnam has a long coastline, is located near the world’s main shipping routes and in the heart of Southeast Asia; which makes Vietnam become the transportation hub of the Southeast Asia connecting to the world.
The North: Vietnam also share a border with China with many border gates to China, which makes it very convenient to transport from China to Vietnam and vice versa by roadway.
The West: Vietnam is also adjacent to two neighboring countries which are Laos and Cambodia. These two countries have emerging economies and large populations. Vietnam has leased Vung Ang seaport in the Central of Vietnam to Laos for Laos to use as a gateway to import goods into Laos.
2.Politically stability, many investment incentives for foreign investors offered by the Government.
Vietnam’s political stability is one of the top factors attracting investors to Vietnam. If we look at some countries in the same region, it is easy to see that most of the countries have experienced coups or political crises, while Vietnam’s politics has always been stable and ensured consistency in economic development policies.
Vietnam pursues the target to be categorized as a middle-income country by 2025, as an upper-middle-income country by 2030, and as a developed country with upper-income by 2045.
Vietnam is always open and welcome foreign investors by adjusting and updating investment regulations. Vietnam has been constantly implementing preferential policies such as corporate income tax exemption and reduction, import tax exemption for a number of goods, exemption and reduction of land rent and land use levy, etc. to attract foreign investors. The government is also committed to continuing to reform administrative procedures to create favorable conditions for investors.
3.Vietnam is a member of the world’s major trade agreements.
Member of the ASEAN Free Trade Area (AFTA)
Vietnam – EU Free Trade Agreement
The U.S.-Vietnam Bilateral Trade Agreement (BTA)
Member of the World Trade Organization (WTO)
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Free trade agreement between Vietnam and the Eurasian Economic Union (Vietnam – EAEU FTA)
All these agreements have shown that Vietnam has been very eager to boost the country’s economic growth and willing to continue to sign other trade agreements with many countries, which has led to the constant improvement of Vietnam’s business environment.
4.Improved infrastructure.
Before the 2000s, the limitations of Vietnam’s infrastructure, especially transport infrastructure, was identified as one of the causes creating invisible barriers preventing Vietnam from attracting foreign investment into Vietnam. However, in recent years, to remove these barriers, the government and localities have been actively mobilizing all resources to invest heavily in infrastructure, key transport routes, airports, routes to border gates, borders, economic zones, industrial parks.
In the next 10 years, Vietnam plans to increase the area for industrial parks to 115,000 hectares with about 558 industrial parks across the country including many high-tech and modern industrial parks.
Vietnam has set a plan to build “Silicon Valley” – a venue of the world’s elite – in Khanh Hoa Province.
5.Young and highly competitive labor force.
Vietnam has a young population structure which has been become younger and younger with an average age of 30.8 years, according to 2017 statistics. Besides, Vietnam’s labor force is also highly appreciated thanks to being hard-working, highly educated, and easy to train. Vietnam has been investing in education and training more than other developing countries and will continue this direction. This is one of the competitive advantages of Vietnam compared to other labor markets in the region.
6.Other advantages of Vietnam
According to Ember organization: In 2021, Vietnam’s solar power output has increased by 337%, equivalent to 17 TWH, making Vietnam the world’s 10th largest solar energy producer. Vietnam is also the only country in Asia to have solar power output exceed its electricity demand.
Vietnam has been leading in the transition to renewable energy in the Asia-Pacific region. Vietnam is in the world’s top 10 countries (ranked No. 8) with the highest investment in renewable energy with an investment of USD 7.4 billion.
Telecommunications technology in Vietnam has also developed rapidly in recent years. According to ITU’s rankings, Vietnam is ranked No. 9 in the world in terms of population proficient in digital technology products.
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