Vietnam is a promising location for businesses with worldwide ambition. Its financial sector keeps expanding quickly, supported by a closely regulated business setting, Vietnam has emerged as a top investment destination in Southeast Asia, particularly for people from other countries. To operate a successful business in Vietnam, you must adhere to their policies, guidelines, and safety rules.
In this post, we’ve outlined the advantages of doing business in Vietnam so that you can identify them before delving into the Vietnamese marketplace. Learn more about the advantages of doing business in Vietnam in the sections below!
What Attracts Companies To Vietnam?
The rapid facility upgrades which attract foreign business to Vietnam have helped fuel considerable logistical advancements as well as robust economical improvement. Another significant factor that attracts businesses to Vietnam is the country’s minimal revenue.
In accordance with a recent report from “Trade Finance Global,” news, Vietnam has emerged as one of the leading locations for asset production over the past ten years as a result of reduced labor charges, easier distribution network connectivity, business transformation, and comparatively stable democratic conditions. Public investors are also drawn to Vietnam because of its liberal growth prospects.
Vietnam’s economy outshines other evolving nations due to its size and credibility. In the year 2022, according to standard chartered forecasters, Vietnam provides a stable working environment and ultimate success with a productive GDP Growth of 6.5% with a thriving mindset of attaining 7.2% in 2023.
Vietnam also has a competitive business environment and extensive open trade structure, with important contracts finalized with various nations.
Due to its affordable labour expenses and socioeconomic development plans, the nation also enjoys a prominent place in the industrial production and IT sectors.
Young Workforce with Skills
Vietnam’s minimum working age is 32.5 years, as reported by Worldometers.
In the Vietnam business world, there is a huge, young workforce with skills that are booming constantly. In contrast, labour costs in the nation are not too expensive
Which entails it as one of the advantages of doing business in Vietnam.
Additionally, according to Nielsen Market Researchers, 60% of Vietnamese workers are below 35.
Strategic Business Location
Vietnam’s ideal strategic business location seems to add extra benefits for business operations. The nation’s strategic location serves as a gateway to the major multinational cargo lanes.
Vietnam’s geographical settings also share borders with the Pacific Ocean and neighboring nations like China, Thailand, Cambodia, and Laos.
Vietnam’s strategic location also offers benefits for cargo shipments and global relations.
One of the main pillars supporting the industrial expansion of a marketplace is the creation of infrastructural developments.
The development of numerous major roads, major airports, high-speed railway routes, shipping ports, and healthcare facilities are among the Vietnamese infrastructural development projects.
To its productivity and draw in further foreign direct investment (FDI), the Vietnamese government will provide infrastructural development and shipping routes, due to its worth in the Vietnam marketplace as stated by Trang Bui, Founder of Cushman & Wakefield.
Business Operations Are Simple
Vietnam has undertaken various regulatory changes to increase the ease of doing business and transparency of investments.
Vietnam’s government is generally reliable, makes decisions on all significant policy-related issues, and gives corporate strategy. Infrastructural investments remain a major priority for the country’s administration, which is not afraid to explore beyond ASEAN for growth-promoting nations.
In accordance with the most recent IMF prediction, Vietnam’s gross domestic product (GDP) in ASEAN is anticipated to grow significantly within the coming five years, moving up from sixth place this year to third by 2027.
This increase was brought about by advancements in specific business procedures. Considering Vietnamnet global, Vietnam’s GDP is expected to reach US$462.64 billion in 2023, placing it fourth among the ASEAN-6 nations, according to the IMF. Consequently, Vietnam’s growth outlook for facilitating business operations is quite simple.
Vietnam Has Solid Foreign Investment
The Vietnamese management has crafted major attempts to reform laws governing international investors since it’s aware that it plays a key role in the country’s economical development.
The country’s economic measures encouraging foreign investment in Vietnam have resulted in high overall rankings.
Foreign direct investment (FDI) has long been welcomed and encouraged in Vietnam, where legislation is regularly updated and FDI incentives are offered.
In conclusion, Vietnam is rapidly becoming part of the ASEAN nations having one of the highest global key markets.
Its tremendous capability is due to socio-economic development plans (SEDP) with important elements like industrial progress, the accessibility to trained labor, and regulations that attract gains. All of these elements offer advantageous settings for successfully starting a business in Vietnam.
Twendee On The Go – Hongkong is our the first vision destination
The outsourcing industry in Vietnam has grown tremendously in recent years, making it an attractive outsourcing destination for international companies. “Twendee On The Go” is the new project of Twendee. This series developed to take you outside of Vietnam to observe what is happening with IT startups all across the World.
For the first, Hongkong is our the first vision destination. Hong Kong in recent years has received a lot of investment from the government as well as foreign countries in the technology field, opening up the future and great opportunities for technology startups. However, businesses in this area are facing big problems due to high operating costs, including personnel, offices, connections, etc. This leads to the risk of capital shortage and long-term failure.
Meanwhile, with the goal of finding and supporting startup businesses to develop early-stage products, such as MVP/ Tech Buddy Program, Twendee will provide comprehensive support to create favorable conditions for businesses to successfully call for capital.
Twendee is one of the Vietnam’s leading blockchain companies with over 4-years of experience, and almost 60 customers from all over the world. We are motivated by a strong goal to pursue professional standards, establish sustainable values, and become a global class organization with an international working environment.