Vietnam has changed significantly in recent years as it has moved from being centrally planned economy to being market-oriented. As a result, the economy has had some of the quickest growth in all of Asia, with an average annual GDP growth rate of roughly 6.5%. Vietnam is a desirable market for long-term investment because of its consistent population growth and rising income.
Additionally, the European Union and Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, 2020, has created opportunities to expand trade and stimulate job creation and economic growth for both parties. The EVFTA eliminates 99% of tariffs, protects geographical designations, and upholds agreed-upon regulations.
Vietnam’s business-friendly policies, compared to its Southeast Asian country peers, encourage a healthy influx of foreign capital. Due to the nation’s determination to open its borders and economy, it is quite easy to conduct business, travel and live a regular, mobile life there. As a result, it has consistently experiences rapid growth when compared to other low-cost countries. Vietnam-based firms can take use of the excellent conditions provided by its position in Asia along important regional shipping routes. As of January 2022, Vietnam had 114 seaports, several of which were deepwater ports, along its over 3200 kilometers of coastline. Major projects are being implemented in logistical centres of Hanoi, Haiphong, Danang, and Ho Chi Minh City in the transportation and logistics sector, offering chances for foreign businesses to help improve local waterways and providing opportunities for foreign companies, especially Dutch companies, to assist in improving domestic waterways.
Moreover, there are still many potential in the Vietnamese wind energy market. The Vietnamese government promotes renewable energy, and there is still room for growth in the usage of wind power. For instance, there are several opportunities for Dutch developers, financial experts, and technical consultants.
In order to retain the country’s strong attraction to international investors, the Vietnamese government also provides a number of investment-related business incentives and is constantly improving through reforms and by upgrading its incentives. The tax benefits are frequently one of the most significant and alluring aspects of the Vietnamese business environment for foreign investors. Moreover, the government also boasts of a dynamic business environment and extensive network of free trade agreements with various other nations as well as the EU, RCEP, and CPTPP signatories. Vietnam is becoming a hotspot for businesses from around the world looking to diversify their Asian presence, access the Vietnam and South Asian markets, complement their China operations, and take advantage of highly attractive free trade agreements, production, and market advantages as a result of specific trends that are driving further increases in the nations’ inbound investment.
Overall, Vietnam offers several options for investors and companies wishing to expand into Southeast Asia because to its export-oriented economy, over 90 bilateral trade agreements, and approximately 60 bilateral investment promotion and protection agreements. It is a viable area for investment and development thanks to its expanding economy, youthful and skilled workforce, and advantageous position.