Why should do business in Vietnam? (Ho Chi Minh City)
Overcoming several difficulties and obstacles as a result of war and an out-dated economic system that dictated the domestic market for many years, Vietnam has steadily changed. Foreign investors should seriously consider Vietnam as the best destination for their business and investment because of the followings:
1. A stable and dynamic economy
Since Protected content the Doi Moi policy, the national economy basically has changed from a centralised/planned system into market-based system which has opened up economy to the greater effects of international integration and globalization. Vietnam economy has been continued to grow exponentially. One of the key economic changes was the equalization between State and private rights and ownership in the economy that has been heralded as an important step in promoting and encouraging foreign investment into Vietnam.
Furthermore, the recent accession into the WTO as well as the execution of many bilateral and multilateral agreements with other countries of Vietnam demonstrates the country’s positive economic outlook. This process created important links between Vietnam and global economy, creating opportunities for foreign investors to move into the Vietnamese market.
2. A young and competitive labour force
As mentioned Vietnam has a young but also work-ready population with about 80% aged 15 or over who shall make up the primary labour force of Vietnam; estimated at around 53.6 million with about nearly 0.8 million being added every year . Moreover, Vietnam labours are highly regarded as young, hard-working, highly literate and easy to train. This is one of the competitive advantages of Vietnam in comparison with other labour markets in the region.
Most Vietnam labourers have good working skills and are highly adaptable to new working environments. However, to satisfy the requirements of foreign investors in particular business lines and professions, further training is still recommended.
3. An open and transparent investment policy system
The economic policies in general and the policies of investment and doing business in particular in Vietnam have been dramatically improved in recent years. The transition from centralised planning principles into market-based principles was an important step to developing the economic policy of Vietnam. This laid down a foundation for the stable development of the economy.
The Vietnamese Government has changed their minds so much since this transition. The cautious and reserved viewpoints of State leaders that served the country during the Cold War has been replaced with a more open and friendly approach that appears to be more compatible with Vietnam’s current focus on trying to attract and encourage foreign investment. These policies have successfully attracted foreign investors and furthered the national economy. Especially, the integration into the world economy has liberalized the nation’s trade regime, correcting the regulatory environment to foster a safe and attractive investment environment.
Most importantly, the Vietnamese Government has attempted to make the economic system more transparent throughout various measures. The uncertain and risky labels of the investment environment in Vietnam which previously turned away foreign investors have been overhauled. Greater transparency has been strengthened not only in macro-economic policies but significantly been maintained in projects and plans.
4. A stable and improving legal system
In recent years, following the transition, integration and globalization, Vietnam is on the way of building and improving its legal system in general and the laws relating to the investment and business sector in particular. Generally speaking, the current legal system of Vietnam has become more comprehensive and stable. The adoption of a series of laws such as the Civil Code, Law on Enterprises, Law on Investment, etc. has closed several loopholes and inconsistencies, giving confidence to domestic and foreign businesses.
In short, the legislative achievements have created many opportunities for foreign investors to do business in Vietnam. Together with an open and transparent economic policy system and a stable improving legal system, Vietnam is giving the world several convincing reasons to be the first choice for international investors.
For your more inquiries for doing business in Vietnam, you are welcome to post here or reach me via my email: Protected content . Thank you for your reading.