Socio-economic
reform policy since the early 1980s has helped Vietnam from a low-income
country to a stable middle-income country and has stable politics, trade
relations with all countries in the world. These changes have made Vietnam an
attractive destination for investors, creating many advantages in attracting foreign direct investment (FDI).
Fast and stable growth
Vietnam
is located in Southeast Asia, one of the most developed and dynamic regions in
the world today. In particular, with more than 3,000 km of coastline and
located at the gateway of the region, Vietnam has many advantages in building
and developing deep-water ports and global trade.
The
tropical monsoon climate with two distinct climates and distinct seasons also gives
Vietnam a lot of advantages in developing agriculture and becoming a relatively
important supply source of agro-forestry and marine products for the region and
the world.
After
more than 30 years of innovation and application of market-oriented economy,
Vietnam has achieved great achievements. The economy is growing at a relatively
high rate compared to the world and regional.
Despite
constantly facing uncertainties and challenges as the world economy has
experienced a period of recession for the past 10 years, Vietnam has maintained
an average GDP growth rate of over 6% per annum. The Vietnamese government is
confident of setting a high middle-income country by 2035, with an average
growth rate of 7% in the coming period.
High
and stable growth over the years has always been a attractive investmentd estination for investors, at the same time helping Vietnam to improve its
competitive position in attracting investment capital compared to other
countries in the region.
In
addition to the economic achievements, Vietnam has also been very successful in
maintaining the stability of other macroeconomic indicators. Inflation rates in
recent years are well under control at less than 5%. Foreign exchange rates are
always maintained at a stable level, no abnormal fluctuation affects the
economy. Credit growth has also been tightened.
The
rapid rise of the middle class over the years has also been an important
contributor to economic growth, particularly in the consumer and retail
sectors, as they are a powerful consumer force have education level and the
needs to improve the quality of life. This is also the main driving force in
turning Vietnam's domestic consumption market into one of the most attractive
markets.
To
date, Viet Nam's population is close to the 100 million, ranking 14th in the
world, about 60% of the population under the age of 35. This is a young,
healthy, dynamic and potential labor force having ability of accessing advanced
knowledge to meet fast-changing economy, especially when the 4.0 industrial
revolution is booming.
However,
labor costs in Vietnam are still relatively low compared to similar income countries,
so it will continue to be a significant competitive advantage for Vietnam in
the near future, especially in the consumer goods manufacturing sector and
labor intensive goods.
Vietnam's
continued maitaining market-oriented economic policies, and increased
integration with the world, will bring many advantages for investors to access
the world market.
Vietnam
has signed a number of bilateral and multilateral free trade agreements (FTAs),
such as the Bilateral Trade Agreement with the United States, South Korea, the
European Union (come into effect in 2018), to become full member of the World
Trade Organization (WTO), joining the ASEAN Economic Community (AEC), ... and
is continuing to negotiate in many other trade agreements.
This
affirms Vietnam's increasingly important role and position in the global
economy, as well as its determination to integrate and adhere to the rules of
international trade.
The
market is highly competitive
In
order to achieve the economic and political results mentioned above, Vietnam
has faced many difficulties and challenges such as: transparency in business is
still low, It still takes time and effort for investors, ...
The
role of the Government in promoting Vietnam's advantages and overcoming
challenges is of utmost importance. In addition to boosting economic growth,
the current tenure of the government has shown its determination to create
favorable conditions for businesses to operate in an environment of equality
and fair competition.
The
Government has taken the policy and implemented resolute actions through
resolutions on improving the business environment and supporting the
development of enterprises.
In
addition, the Government of Vietnam is implementing many policies to enhance
national competitiveness and at the same time to restructure the economy and
transform the growth model, focusing on restructuring public investment,
state-owned enterprises and financial-banking systems.
In
addition to continuing to implement preferential policies for attracting
foreign investment such as corporate income tax exemption, import tax exemption
for some commodity lines, exemption from land rental and land use fees, etc.
The Government also committed to continue to reform administrative procedures
to create favorable conditions for investors.
World
Bank reports acknowledged Vietnam's efforts in reforming administrative
procedures, particularly those relating to the performance of tax obligations.
Specifically, the Ministry of Industry and Trade recently reduced and
simplified 675 business conditions under its management.
In
short, despite many challenges and difficulties, Vietnam is still considered a
highly competitive market, with stability in terms of social security and
attractive growth.
The
situation of attracting foreign direct investment in Vietnam in the past two
years is also very impressive, although the world has many unfavorable
developments.
In
2016, registered FDI reached $ 27 billion and investment capital reached $ 15.8
billion, an increase of about 11% over the previous year. In the first nine
months of 2017, Vietnam has attracted more than US $ 25 billion of direct
investment. These impressive figures demonstrate the attraction of Vietnam to
investors in the past, present and future.
In
addition, the presence of highly reliable, internationally-advised,
well-informed, and internationally-experienced auditors will help investors to
be confident in their investment decisions. and operate in Vietnam as they are
able to assist foreign investors in complying with the requirements and
regulations in Vietnam and to make the most of the benefits that the Government
offers.
We are proud of being top five reliable company specializing in investment fields in Vietnam. Please contact us for inquiries via email : info@fdi-vietnam.com or call us directly at + 04.32020505. Our official website: fdi-vietnam.com. Let us help your business in Vietnam.
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