Vietnam is located in the middle of the most vibrant economic region in the world, and has a favorable geographical location and natural conditions to develop all types of freight transportation. This advantage allows Vietnam to develop an infrastructure system and a logistics service delivery network serving domestic trade as well as international trade with Southeast Asia, Asia and the whole world.
Vietnam's political stability is one of the top factors attracting investors. It can be easily seen that most countries in the region have experienced political coups or crisis, meanwhile, Vietnam's politics is always stable and ensures consistency in economic development policy.
In recent years, Vietnam has been one of the fastest growing economies in Asia. The average economic growth rate of Vietnam in the 1991-2010 period was about 7.5%. In the period 2011-2013, despite many difficulties, it was still 5.6%. With a GDP of around $ 223 billion and a growth of 6.8% in 2017, Vietnam has been listed on the list of the world's most dynamic economies.
Vietnam always opens its doors and welcomes foreign investors through updating and adjusting investment regulations. Vietnam has constantly implemented preferential policies to attract foreign investors such as corporate income tax exemption and reduction, import tax exemption for a number of commodities, reduction of land use rent, etc. The Government also committed to reform administrative procedures to create all favorable conditions possible for investors.
According to the Foreign Investment Department, in recent years, Vietnam's business and investment environment has been continuously improved towards openness, transparency, and in accordance with international standards.
Another demonstration of Vietnam's openness to the global economy is the numerous trade agreements that Vietnam has signed. The country has become an active member of the following associations and organizations:
Vietnam - EU FTA (effective in early 2018)
Bilateral Trade Agreement (BTA) with the United States
World Trade Organization (WTO)
Participating in these agreements shows that Vietnam is eager to boost the country's economic growth and will continue to sign other trade agreements with many countries, thanks to which Vietnam's business environment has been continuously improved.
The Vietnamese government is making efforts to improve national competitiveness. In 2017, the World Economic Forum ranked Vietnam's competitiveness 55th out of 137 economies. The World Bank's ranking on Vietnam's business environment jumped 14 places to 68th out of 190 countries and territories. Vietnam's Sustainable Development Index in 2017 jumped 20 places to 68th out of 157 countries and territories.
Previously, limited infrastructure, especially transport infrastructure, was regarded as one of the factors creating an invisible barrier in the process of attracting foreign investment into Vietnam. However, in recent years, in order to remove these barriers, the government and provincial authorities have actively attracted all resources possible to invest well in infrastructure including arterial traffic routes, airports, border routes, economic zones, and industrial zones.
Vietnam is a country with a young and increasingly rejuvenating population. According to statistics in 2017, the average age is 30.8 years. In addition, Vietnam's labor force is also highly appreciated for being hard-working, well-educated and easy to train. Vietnam has also been and will continue to invest more in education and training than other developing countries. This is one of Vietnam's competitive advantages compared to other markets in the region.
In addition to an abundant and qualified workforce, labor costs in Vietnam are considered to be very competitive compared to the region. Most Vietnamese workers have good working skills and high adaptability to any working environment while the labor cost is only 10% or 5% in industrialized countries, and much lower than that of countries with similar growth.
Another evidence for Vietnam's economic openness is the participation in many bilateral and multilateral free trade agreements. Strengthening integration with the world will bring many advantages for investors from these countries and regions when they invest in Vietnam.
Translated by VietnamCredit