Reasons to Invest
in Vietnam

Vietnam is among the Southeast Asian countries with the fastest growing economy. It has pleasant and well-established business climate which creates numerous opportunities for both domestic and foreign companies. What is more, recently, UsNews published report, according to which Vietnam ranked 7th among best countries to launch business.

Read on to find out what else makes this country so attractive for foreign companies and what are the main reasons to invest in Vietnam.

Young and educated population with increasing purchasing power

Currently, Vietnamese population is estimated at more than 98 million people. 70% of them are under 35 years old, which means that there is young population that, in addition, has a wide access to education. Together, it creates highly qualified labor force. At the beginning of 2022 labor force participation in Vietnam was the highest in Asia and equaled 67%. Vietnamese government and local authorities contribute a lot to education modernizing and development: for example, around 20% of the budget goes on education.

Preferential government policy

Vietnamese government provides different fiscal and non-fiscal incentives for foreign companies and investors that want to launch and run business in the country. Foreign companies are offered the following preferential tax rates: instead of established corporate income tax (ICT) that equals 20%, they pay 10%, 15% or 17%. Vietnamese government also offers customs duty incentive policies and land rental exemption policies that will allow cut costs for enterprises. Thus, it is extremely beneficial for companies from abroad to run business here.

Well-established infrastructure

During last few years Vietnamese infrastructure is steadily upgrading and improving. It directly enables business operations and reduces transactional expenses. Nowadays Vietnam has 21 commercial airports, 10 of which are international ones. They are equipped with modern facilities and connect Vietnam with numerous destinations around the world. It is the US, East Asia, several European countries, Australia, and others.

The road system is extremely advanced as well as many ports in Vietnam.

Trade openness

Vietnamese government took quite serious measures to integrate national economy in international trade. The first step in this process was becoming a member of the World Trade Organization, after that Vietnam became a member of various free trade agreements (like RCEP – Regional Comprehensive Economic Partnership, or regional organizations such as ASEAN). Besides, to promote the investments between Vietnam and Europe, the government recently signed the EU-Vietnam Free Trade Agreement with the European Union.

Doing business in Vietnam becomes easier

The World Bank ranked Vietnam 70th out of 190 economies in Doing Business 2020 report. Vietnamese score equaled 69.8, which is 1.44 points higher than in the previous year.

A significant improvement in this sphere includes the process of paing taxes. Since Vietnam’s General Department of Taxation modernized its IT infrastructure, enterprises can settle taxes much faster than before.

Stable economy growth

Over the last few decades, Vietnam has seen a stable and consistent economy growth. For instacne, in 2000, Vietnam was the 60th largest economy in the world and by the year 2019, it rose to the 44th place. Accordingn to the forecasts, Vietnam will be the 20th largest economy by 2050.

Increased GDP contributes a lot to this progress. Since 2000, GDP growth in Vietnam averaged 6.5% annually. In 2020-2021, the growth slowed down but country’s economy still shows growth at nearly 3% despite the pandemic consequences.

If you want to start business in Vietnam and sell your products here, Awesome products Co. can help you with it. Awesome Products Co. is a distributor based in VIetnam. We offer such services as comprehensive FMCG marketing support including merchandising, promo activities, and on-shelves promotions. Awesome products Co. can also help your company to enter major marketplaces in South East Asia, Europe, and North America. We have years of experience selling our brands on Lazada, Shopee, Tiki, Sendo, and Amazon in different countries.

Contact us and start your business in one of the most promising country in Southeast Asia!