The numbers

 

Strategic location

Located closely to major Asian markets, and adjacent to China – the world’s economic powerhouse. Bestowed with long coastline, with direct access to the South China Sea and proximity to the world’s main shipping routes, these create perfect trading conditions for Vietnam.

              (Vietnam Grocery Report 2013 – Nielsen)

Population growth rate

Vietnam ranks 14th in world population, with more than 95 million people. This is forecasted to increase to 105 million by 2030; consisting of a large young population. Vietnam is blessed with a young workforce. Currently, 60% are under 35, while median age stands at 30.8 (reference Nielsen and Worldometers). In addition, increasing investment in education, stable economic growth, a faster-growing middle class than any other country in Southeast Asia position Vietnam as a highly desirable destination for foreign investment.

              (World Bank)

GDP growth

In recent decades, Vietnam has emerged as one of the countries with fastest economic growth. According to the World Bank, GDP growth in Vietnam has been stable at average of 6.46% a year since 2000.

Competitive labor cost

Labour cost in Vietnam is still below the general average, in fact, labour cost is less than half of neighboring China. Coupled with high labour productivity and promising economy. Vietnam serves ideally as an alternative to China.

Minimum Wages in Vietnam and China 2012 – 2017

              (Economist.com)

Open policies to foreign investment

Vietnam is embracing foreign investment and funding with policy changes and investment laws.

Decree 60/2015 issued by the Government of Vietnam allowing foreign investment into an array of businesses is one example. This, along with other initiatives help bridge arrays into special sectors like energy, technology and healthcare.

Ease of Doing Business in Vietnam

              (Tradingeconomics.com)

Some noteworthy incentives

Reduction or exemption of
corporate income tax

Exemption of import tax,
for example
import of raw materials

Reduction or free rent of land,
land use fees

According to the government, Vietnam has recorded $24.4 billion in direct foreign direct investment in 2016. Big companies like Samsung, Nestle and LG are the biggest contributors to these numbers.