Tiếng Việt
In recent years, Vietnam has attracted a strong inflow of foreign investment from all around the world. “Why invest in Vietnam?”, that is a common question among many investors. The article below is a comprehensive list of 7 reasons that investors should invest to Vietnam.
Read more: 100% foreign invested company in Vietnam
Mục lục
Reason 1 to invest in Vietnam: Political Stability
It is clearly that political stability contributes to economic stability. With only one Communist Party of Vietnam leads the country, Vietnam has a fairly stable political environment, ideal for sustainable economic growth while political corruption remains an issue in the world. This stability is especially valued, in light of the political chaos in other Southeast Asian countries such as Thailand or Philippines.
As a result, Vietnam has been in the stable economic growth period in the last few decades, with an average annual growth rate between 6.5 percent and 7 percent. Moreover, increasing FDI activities in Vietnam has also created millions of new employments and helped make ends meet for many Vietnamese citizens.
Reason 2 to invest in Vietnam : Impressive GDP Growth
Since the economic reforms launched in 1986, Vietnam’s econmy has grown substantially. The annual Gross Domestic Product (GDP) in Vietnam increases from US$600 per person in 2005 to a favorable US$2,700 in 2019, a massive increase in just a decade. GDP growth also implies that Vietnam is the best destination for investors to conduct investment project.
Reason 3 to invest in Vietnam: Government Policies
Vietnam has been offering incentives to multinational companies. For example, companies investing in high-tech or healthcare are having benifit from tax exemptions, such as corporate tax, import duty, and land use tax. The Government also undertakes to reform administrative procedures to create favorable conditions which attract more foreign investors.
Reason 4 to invest in Vietnam: Trade Agreements
Vietnam is participating in various trade agreements, mostly with its Asian counterparts. For example, it is a significant player in the Association of South East Nations (ASEAN), which aims at lowering intra-regional tariffs. After officially becoming a member of the World Trade Organization (WTO), Vietnam has participated in many international cooperative agreements including various free trade agreements (FTA) with many regional and global partners. Here are some trade agreements that Vietnam has joint:
– ASEAN Free Trade Area (AFTA)
– World Trade Organization (WTO)
– The U.S.-Vietnam Bilateral Trade Agreement (BTA)
– EU-Vietnam Free Trade Agreement (EVFTA)
– Trans-Pacific Partnership (CPTPP)
Reason 5 to invest in Vietnam: Optimal Location
Vietnam is located in the center of Southeast Asia, on the East of the Indochinese peninsula, closed to many major markets in Asia, especially is the neighbor of the second strongest economic country in the world – China. The country possesses an ideal location for international trade with the long coastline to the East Sea, which is the main international transportation and the perfect conditional venue for trade activities.
Reason 6 to invest in Vietnam: Low setup costs
A minimum capital is not required for most bussiness lines in Vietnam. Investors can open a business with a charter capital in accordance with their scope of operation, without a large amount. However, the amount of capital must be fully paid within 90 days from the day company is registered.
The average income of one Vietnamese is about 2,800 USD a year. Therefore, new startup has the ability to attract talent to work for the company with a salary that may be less than $200-300/month. For people with years of work experience or prestigious qualifications, the salary may be $1,000.
Reason 7 to invest in Vietnam: High population
With more than 96 million residents, Vietnam ranks at the 15th most populous country in the world, the 3rd most populous contry in ASEAN. By 2030, the population will grow to 105 million, as forecasted by Worldometers. Together with a growing population, the middle class of Vietnam is increasing faster than that of any other Southeast Asian nation. Steadily increasing economy means bigger income which, in turn, will result in growing middle class. Vietnam’s high population and young workforce contributes to the consumption potential in the country
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