What are the advantages of doing business in Vietnam?
Vietnam’s financial sector and key industries are rapidly expanding. Combined with a highly regulated business environment, the country is gradually becoming a fruitful investment destination. That and many more advantages of doing business in Vietnam are drawing numerous foreign investors of various industries..
Strong Economic Growth and Large Consumer Demographic
Vietnam has become one of the fastest-growing economies in Southeast Asia and even the entire world. This growth alone is one of the most attractive advantages of doing business in Vietnam. This thought is shared by multiple foreign investors, as the country has seen a sizable increase in foreign direct investment in recent years.
The overall growth leads to a positive development in consumer behaviors. Vietnamese middle class’ income is on an upward trend, making this demographic the primary target for most businesses, especially those in retail. With a population of 96 million people, Vietnam has major potential for increased sales and seamless market penetration.
Young and Skilled Workforce
The Vietnamese workforce is one of the country’s most valuable resources. They are famed for their tenacity, dedication, and constant desire to improve and acquire new skills. On top of that, Vietnam is also a viable option for reasonably priced labor, thanks to its status as a developing country.
Every year, Vietnam gains about 1 million new workers. Most of the workforce, which now exceeds 60 million people, has finished secondary school and is highly skilled. In comparison to other Southeast Asian nations, many Vietnamese students outperform their peers academically, making them perfect raw talents for businesses. In fact, the median age of the Vietnamese talents is relatively young, adding longevity to the list of the workforce’s appealing characteristics.
Strategic Location and Cost Efficiency
Vietnam’s geographical location is where many global transportation routes intersect. These routes facilitate the movement of goods across borders and within the country seamlessly.
Vietnam shares borders with China to the north, Laos and Cambodia to the west, and a long coastline. This unique position offers easy access to key markets in Asia, including China, Japan, South Korea, and other ASEAN countries. Vietnam’s proximity to major global trade routes make it an ideal hub for international trade.
Though, Vietnam did not merely luck out on an advantageous location. Their well-developed transportation infrastructure, including multiple transportation methods crafted with ingenuity, is the real treasure.
Still, many countries possess this invaluable trait, what sets Vietnam apart? Same as the labor force, Vietnam’s transportation fees and taxes are generally affordable. Furthermore, the government’s efforts in incentivizing foreign investment have created many beneficial policies for international investors to enter the market.
Since Vietnam is a member of the ASEAN, businesses here have access to a dynamic and diverse consumer base. Furthermore, the country is involved in a number of international trade treaties, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA). These treaties encourage trade and investment, making Vietnam an appealing location for export-oriented businesses.
These trade agreements are a win-win situation, as they elevate Vietnam to a welcoming trade destination and allow investors to enjoy the benefits of doing business in this flourishing country.
Vietnam has been undergoing significant infrastructural development in recent years to support its growing economy and enhance its competitiveness. Major roads, airports, high-speed railway routes, shipping ports, and healthcare facilities are among Vietnam’s notable infrastructural development projects. These investments create opportunities for businesses and contribute to Vietnam’s emergence as an attractive destination for foreign investment and trade.
Simple Business Operations
Vietnam provides a variety of business formation options, including limited liability companies, joint-stock companies, and joint ventures, among others. The operation itself is comprehensible bar certain document application procedures.
In recent years, the government has made efforts to simplify the process of starting a business. The procedures for business registration and licensing have become more streamlined to simplify the process for new businesses. With that being said, it is still important for businesses to learn regulatory complexities, cultural nuances, and potential language barriers.
These advantages of doing business in Vietnam make it appealing for businesses to expand operations in this dynamic market. On Digitals, we hope that this list has provided you with all of the necessary information from this article. If you need assistance with digital marketing, contact us and visit our blog for additional insights. We look forward to collaborating with you on your next SEO, social media marketing, and website design projects.