In order to answer the question of “Why Vietnam” is an attractive destination for entrepreneurs, investors, and traders to boost their capital efficiently and stable. The following are six main points.
- Strategic location
The advantage of geography has brought outstanding characteristics that no place can compare as well as being among and close to the major markets such as China, Korea, and Japan. Moreover, Vietnam’s coastline prolongs from North to South and directly faces the international sea route, which contains 3/4 of global sea traffic.
- Stable & high economic growth
Over the few decades, Vietnam’s growth rate is still one of the fastest countries, with an attractive GDP of 7 – 8 %. Especially, Vietnam has spectacularly passed over the Covid-19 pandemic with a GDP of 8% at the top in the world. Besides, inflation is maintained below 3%, and the overall financial system has remained relatively stable.
Additionally, Vietnam has already signed many Free Trade Agreements, such as AFTA, PRC, EFTA, EVFTA, and CPTPP, that will allow Vietnam to take advantage of the reduced tariffs within the ASEAN Economic Community (AEC) and the EU and the US.
- A young population and competitive labour costs
Vietnam is the 14th largest country, with a population of 95 million people. By 2030, This number will further grow to 105 million people. United Nations Population Fund calls Vietnam as “Golden Age” because 88% of the population aged 25 – 59 joined the labour force.
As the cost of labour has been significantly increasing in China, the enormous Vietnamese skilled workforce is an alternative.
Otherwise, the wages in Vietnam are still less than half of the wages in China and are well competitive with India, Cambodia, and Bangladesh.
- Purchasing power
The characteristics of behaviours and a young population structure have created a strong purchasing power that helped Vietnam proactively pass over the Covid-19 pandemic and maintain incredible economic growth at the top of the world. Over 8% of the GDP carved a healthy domestic consumption, which can cover the market’s global decrease.
- Improving the legal regulations
The Vietnamese Government has been making many amendments and improvements to ensure that investment procedures are easier and more transparent. Everyone can go to The National Public Services Portal “NPSP” at dichvucong.gov.vn to communicate with the authorities for all consultations.
In 2023, the Vietnamese Government announced a list of commitments to reaffirm that all import-export procedures and tariffs are more optimizable and practical.
- Improving Infrastructure
Recently, there have been many breakthroughs in infrastructure development with the backbone of highway express. By 2030, The number of national roads will achieve at least 5000 km connecting major hotspots and industry zones from North to South.
In addition, the national port system will be ready to adapt to the goods clearance from 14000 – 14200 million tons and serve 10.1 – 10.3 million international customers annually.
Directly connected to thousands of accredited factories and manufacturers, as well as located at the centre of the international port Haiphong, K&K Vietnam has the significant advantage of sourcing and exporting a wide range of merchandise with the best highlight priorities.
