Since the Vietnamese government initiated economic and political reforms in 1986, Vietnam’s pace of development has been truly remarkable. From 2000 to 2021, GDP increased 10 times, from $40B to $366B; it accounts for 11% of the region’s economy. Within the same period, GDP per capita increased 7.5 times, reaching over US$3,700 in 2021. A country of 97 million people, Vietnam’s impressive growth was primarily fueled by robust domestic demand, export-oriented manufacturing and a growing services sector. Even during the pandemic, growth slowed down but remained in positive territory in 2020 and 2021.
Vietnam’s dynamic economy, entrepreneurial zeal and hard-working, educated citizens all disproved old Cold War labels long ago. The country offers global companies excellent development opportunities in manufacturing and other investments within special zones. Vietnam is particularly well-suited, culturally and commercially, to pick up investment overflow from China if global politics dictates it, and as “China plus one”. The country offers affordable labor costs and land prices, favorable corporate income tax rates, a slew of trade agreements (including the recent EU-Vietnam free trade agreement), a young and skilled workforce, and a strategic geographic location.
Come and pay ASEAN Business Partners a visit in Ho Chi Minh City or Hanoi. We’ll be glad to help.