Bolstering its allure is
Vietnam's robust and consistently growing economy. With annual GDP
growth rates that outshine many of its global and regional counterparts, Vietnam showcases
resilience and dynamism in the face of economic challenges. This economic vigoro is
complemented by a stable government characterized by a clear economic vision, fair policy
control, and low investment barriers, which collectively foster an environment conducive to
sustained growth and investor confidence.
Vietnam's commitment
to improving its business climate is evident in its fair and
improving ease of doing business rankings, which serve as a testament to its dedication to
attracting foreign investment. The country boasts a sizable and youthful labour force, with
nearly 60 million workers, providing a competitive edge in terms of productivity and
adaptability. Moreover, Vietnam's landscape is dotted with well-developed Economic Zones,
Industrial Parks, Business Districts, and Residential Centres, offering tailored
environments for diverse business activities. The country's strong FDI environment, with
significant projects disbursed and paid-in capital, further underscores its attractiveness
to global investors. With a population exceeding 95 million and a rapidly expanding middle
class, Vietnam presents a burgeoning consumer market, with a growing services sector
comprising over 40% of GDP. This demographic dynamism fuels domestic demand and augments the
attractiveness of the Vietnamese market for businesses.
Vietnam's extensive
network of Free Trade Agreements, numbering more than 18, grants it
trade advantages across the Asia-Pacific region, ASEAN, Europe, and beyond. Additionally, as
a member of the WTO and signatory to major international Intellectual Property Protection
conventions, protocols, and agreements, Vietnam integrates seamlessly with global legal
frameworks, enhancing its appeal as a destination for international investment and commerce.
In essence, Vietnam's multifaceted strengths as a strategic location, growing economy,
stable governance, conducive business environment, vibrant consumer market, and integrated
legal frameworks collectively position it as a compelling destination for businesses and
investors seeking dynamic opportunities in the heart of Southeast Asia.
The Foreign Direct
Investment (FDI) landscape in Vietnam remains robust, driven by
favourable government policies and conducive factors such as political stability, strong
economic growth, and a young, educated population. Vietnam's FDI stock reached USD 274
billion by the end of 2022, underlining its appeal to international investors.
Prime Minister Pham Minh Chinh's commitment to achieving net zero emissions by 2050 and
participation in the Just Energy Transition Partnership signal Vietnam's focus on
sustainable development. However, the implementation of such ambitious plans requires
detailed strategies, as seen in the ongoing development of the Power Development Plan 8.
Vietnam's engagement
in free trade agreements, including the EU-Vietnam FTA, UK-Vietnam
FTA, and RCEP, enhances its attractiveness for FDI by providing better market access and
encouraging investor-friendly reforms. Nonetheless, these agreements also present
challenges, particularly for U.S. exports competing against preferential treatment enjoyed
by other countries.
The Communist Party of Vietnam's 10-year economic strategy prioritizes shifting foreign
investment towards high-tech industries and strengthening environmental standards. Recent
legislative changes, such as the new Securities Law and Labour Code, aim to liberalize
investment regulations and enhance workers' rights.
