Why is this the right time to invest in Vietnam?
Vietnam is one of the countries with the highest growth rates in the world. A series of legislative reforms recently opened the country to foreign capital, making it very attractive for foreign investors to invest in Vietnam.
1 / Entering a high growth area
Vietnam has two main features, making the country a preferred destination for foreign investors:
- Strong economic growth: Since 2000, Vietnam has experienced strong economic growth, driven by international trade and foreign investment. Vietnam is one of the Asian economies most open to world trade, which accounted for over 164% of GDP according to a World Trade Organisation report covering the period 2012-2014. Forecasts of GDP growth, estimated at 6.4% in 2016, against only 2% in the EU and about 3% for the United States, suggest a bright future for the Vietnamese economy. The data published by the World Bank also indicates that all lights are green for investing in Vietnam.
- Geographical location for investment: Located in the heart of Southeast Asia, Vietnam takes full advantage of the economic dynamism of the motor region of world trade. With access to the South China Sea and the Gulf of Thailand, the country has several major ports, including the port of Saigon (Ho Chi Minh City).
2 / Taking advantage of a favourable local market
The local market is currently very favourable for foreign investors to invest in Vietnam:
- A young and cheap workforce: 60% of the Vietnamese population is of working age and is highly qualified.
- Liberalisation of the economy continues: The government is following an economic liberalisation strategy based on the free market in order to attract investors. The country is privatising many sectors and investment law has significantly reduced the number of activities prohibited for foreigners, which opens a new field for investors.
- Reasonable taxation: The Vietnamese tax system is competitive with other countries in the region. A strong majority of investors say they are satisfied.
3 / Benefit from a protective legal framework
The development of an attractive and competitive investment policy to invest in Vietnam is one of the priorities of the Vietnamese government. Through a series of administrative reforms, Vietnam has gradually opened its market, making the Vietnamese economy and a globalised economy of the country a popular destination for foreign investors.
The government is improving its judicial system, creating policies and tax incentives to invest in Vietnam, meeting its commitments to the international community and professionalising the investment promotion activities. The investment law, adopted in November 2014, is modern and meets the needs and expectations of investors. The Vietnamese legal framework is conducive to investment, which the country needs to continue growing.
4 / Get authorisations to operate in record time
Vietnam has gradually facilitated the setting up of foreign companies on its territory. Following recent legislative reforms, foreigners can now establish themselves in Vietnam under the following conditions:
- Investment certificate/license: a project involving foreign capital requires obtaining an investment certificate/license (licensing and business registration). For this, you must submit a complete, detailed and consistent dossier.
- Government approval: the establishment of a branch or a representative office requires an authorisation issued by the Vietnamese government ((Ministry of Industry and Trade for branch establishment license, Department of Industry and Trade of provinces/cities for representative office establishment license) after filing a request to that effect.
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