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WHY IS VIETNAM AN INVESTMENT ATTRACTION?

Posted on by V-International
1. Political stability
Vietnam has made remarkable progress in all aspects over the years, increasingly asserting its important role in the region and in the world. Vietnam’s legal system is highly appreciated for an open business environment, transparent investment guidelines, and favorable profit-based incentives for businesses. In addition, Vietnam has actively participated in numerous free trade agreements, multilateral and bilateral agreements, developed diplomatic relations with nearly 190 countries worldwide and signed 16 FTAs with
important trading partners. This has enabled an open investment environment, creating a strong motivation for foreign investors to set foot in the Vietnamese market. Political stability is one of the advantages throughout Vietnam’s development, creating comfort, trust, and long-term strategic investment for investors. This is preference that not all countries have.
2. Dedicated preferential policies for FDI enterprises of the Vietnamese Government To show goodwill for attracting FDI inflows, the Vietnamese Government has issued various dedicated preferential policies for foreign investors such as: land incentives; exemption and reduction of corporate income tax rates; special incentives for multinationals; and dedicated regulations to facilitate foreign investors seeking to conduct business in the host country. These include non-financial incentives such as allowing unrestricted recruitment of foreign workers, ensuring the transfer and remittance of capital and profits; signing agreements; authorizing the direct selling of consumer goods to end consumers, not through agents or commercial companies; land entitlements.

3. Openness to private sector The Vietnamese Government creates all favorable conditions for the development of the private sector, even promulgating policies to engage the private sector in innovation, technology modernization, focusing on building business-centered start-up ecosystems. The forming and development of large private economic groups, with strong potentials and regional competitiveness, have becoming a reality in Vietnam.

4. Active participation in the ongoing globalization Vietnam has gradually participated in the integration process upon officially becoming a member of ASEAN, joining the ASEAN Free Trade Area (AFTA), and officially becoming the 150th member of the WTO on January 11th The increasingly intensive integration process is reflected in the establishment of diplomatic relations with 189/193 member countries of the United Nations, the signing of 55 bilateral investment agreements and 58 double taxation avoidance agreements with various countries and territories. Vietnam has economic and trade relations with about 165 different countries and territories. At the same time, Vietnam is also a member of 63 international organizations and more than 650 NGOs. These are evidence of the proactive opening up for economic development, enhancing integration access opportunities for domestic and foreign businesses, promoting the globalization process of Vietnam and the region.

5. A young, qualified and competitive workforce Vietnam is in the period of a golden population structure as relected in a young, dynamic workforce with the potential to become highly skilled, highly disciplined and responsible workers. In the context of global international integration, Vietnam is taking advantage of the opportunity to turn human resources into an advantage through the development of open and flexible vocational education, shifting from traditional training models to business responsive ones. The Vietnamese Government also pays special attention to and invests in technology updates and universal training for young workers. Its abundant labor force has been significantly improved in foreign languages, professional knowledge, skills and attitudes at work. That shows the attraction of highly competitive human resources in the region.

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