Vietnam is Among 10 Best Countries to Start Business – Find out why
Recently, UsNews published report, according to which Vietnam was at the 7th place among top countries to start business. It was based on assessments of almost 5000 decision-makers that took into consideration 5 main factors: bureaucratic procedures, business connections with the rest of the world, easy access to capital, affordability, and cheap manufacturing expenses. Read on to find out the reasons of why Vietnam got reputation of one of the top countries for starting business.
Why Vietnam is one of the best countries for launching your business
Rapidly developing economy
Vietnam GDP is steadily growing since the beginning of the 20th century; its growth rate averagely equals 6-7% annually. Even after COVID-19 Vietnam GDP growth rate (2.9%) was one of the highest in the world. According to world and Vietnamese experts, its growth is expected to reach 6 – 6, 5% by the end of 2022.
Young and educated population
There are more than 98 million people living in Vietnam: nearly 70% of the total population is under 35 years old, which makes Vietnam the country with huge labor market. At the beginning of 2022 Vietnam labor force participation was about 67% – one of the highest one in Asia. But what is more important is that people in this country get wider access to high-quality education. Government and local authorities contribute more than 20% of the budget to education development every year. Thus, Vietnam has not only large in number, but also educated workforce.
Rapidly developing economy
Vietnam GDP is steadily growing since the beginning of the 20th century; its growth rate averagely equals 6-7% annually. Even after COVID-19 Vietnam GDP growth rate (2.9%) was one of the highest in the world. According to world and Vietnamese experts, its growth is expected to reach 6 – 6, 5% by the end of 2022.
Young and educated population
There are more than 98 million people living in Vietnam: nearly 70% of the total population is under 35 years old, which makes Vietnam the country with huge labor market. At the beginning of 2022 Vietnam labor force participation was about 67% – one of the highest one in Asia. But what is more important is that people in this country get wider access to high-quality education. Government and local authorities contribute more than 20% of the budget to education development every year. Thus, Vietnam has not only large in number, but also educated workforce.
Preferential government policy
Vietnamese government offers various fiscal and non-fiscal incentives for foreign companies and investors that want to run business in the country. For instance, foreign companies are provided by 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 help to reduce costs for companies.
Great location
Thanks to its huge coastline in the heart of Southeast Asia and access to the South China Sea, Vietnam uses shipping routes that are extremely important for export and import.
Infrastructure development
Vietnamese government allocated quite big part of country’s budget on the development of infrastructure. Before 2020 there were many year of modest progress in this sphere, but in 2020 expenses on infrastructure increased by nearly 35% (which was 20$billion or 6% of GDP). In the first half of 2021 this tendency continued and expenses increased by 16% in comparison with 2020. Improvement in infrastructure will likely to lead to more efficient and seamless logistics services within Vietnam. Moreover, this will create new opportunities for foreign companies in the country.
Vietnamese government offers various fiscal and non-fiscal incentives for foreign companies and investors that want to run business in the country. For instance, foreign companies are provided by preferential tax rates: instead of established corporate income tax (ICT) that equals 20%, they pay 10%, 15%, or 17%. Vietnamese government also offers customs duty incentive policies and land rental exemption policies that will help to reduce costs for companies.
Great location
Thanks to its huge coastline in the heart of Southeast Asia and access to the South China Sea, Vietnam uses shipping routes that are extremely important for export and import.
Infrastructure development
Vietnamese government allocated quite big part of country’s budget on the development of infrastructure. Before 2020 there were many year of modest progress in this sphere, but in 2020 expenses on infrastructure increased by nearly 35% (which was 20$billion or 6% of GDP). In the first half of 2021 this tendency continued and expenses increased by 16% in comparison with 2020. Improvement in infrastructure will likely to lead to more efficient and seamless logistics services within Vietnam. Moreover, this will create new opportunities for foreign companies in the country.
Trade agreements
There are a lot of agreements between Vietnam and other countries. If we are talking about South East Asia, Vietnam plays a significant role in ASEAN (Association of Southeast Asian Nations) and promotes lower intra-regional tariffs. There is also Regional Comprehensive Economic Partnership (RCEP) that created a free-trade zone and was concluded between ASEAN countries, China, South Korea, Japan, New Zealand, and Australia. Besides, to promote the investments between Vietnam and Europe, the government recently signed the EU-Vietnam Free Trade Agreement with the European Union.
Vietnam is the country with high potential and numerous opportunities. Awesome Products Co. provides all services to enter new market and grow your business in one of the most promising markets in Southeast Asia. We can help connect foreign brands and Vietnamese consumers.
Follow Awesome Prodicts Co. to learn more about our services and feel free to contact us for more detailed information!
There are a lot of agreements between Vietnam and other countries. If we are talking about South East Asia, Vietnam plays a significant role in ASEAN (Association of Southeast Asian Nations) and promotes lower intra-regional tariffs. There is also Regional Comprehensive Economic Partnership (RCEP) that created a free-trade zone and was concluded between ASEAN countries, China, South Korea, Japan, New Zealand, and Australia. Besides, to promote the investments between Vietnam and Europe, the government recently signed the EU-Vietnam Free Trade Agreement with the European Union.
Vietnam is the country with high potential and numerous opportunities. Awesome Products Co. provides all services to enter new market and grow your business in one of the most promising markets in Southeast Asia. We can help connect foreign brands and Vietnamese consumers.
Follow Awesome Prodicts Co. to learn more about our services and feel free to contact us for more detailed information!
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