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Vietnam is a fast growing technology and manufacturing hub. A large population, low labor costs, and strong industrial base makes Vietnam the fastest growing country in Asia. The government is rapidly removing the institutional obstacles that previously impeded business. **Top choice for manufacturing and exporters**
(+) Consistently strong economic growth over last decade, especially in 2020
(+) Solid manufacturing base with low cost labor
(+) Strategically located Special Economic Zones (SEZs) allow global trade with minimal taxes
(-) State owned enterprises and government bureaucracy still create obstacles
(-) Internal transportation infrastructure is still inadequate despite heavy government investment
(-) Limited English language capabilities
– Vietnam has become the newest global hot spot for manufacturing
– 7%+ average GDP growth over last 10 years , with strong GDP growth even in 2020
– #1 middle income country on Human Capital Index
– Premier destination for FDI ($17 billion in 2020)
Vietnam’s shift from a centrally planned to a market economy has transformed the country from one of the poorest in the world into a lower middle income country. Vietnam now is one of the most dynamic emerging countries in East Asia region.
Population:
96.2 million with 67 million working age population
GDP:
$260 billion USD, 7 .0% annual growth from 2015 2019
GNI per capita:
$2,590 USD, 2.8 % Inflation, lower middle income country
Industries:
Agriculture (14% GDP / 34% Workforce) esp. rice, tea, and coffee; Manufacturing (34% GDP / 28.5% Workforce), esp. textiles,
garments, furniture, technology, and cars; Services (41% GDP / 35.4% Workforce), esp. retail and telecom
Tourism:
Growing tourism sector (4.5% of GDP) 18M tourists in 2019, #28 in the world for visitors
#70/195
#104/180
69%
67 M
$1.4K USD
#65/100
38% NYC Prices
No Data Found
Ease of Doing Business
Corruption Perceptions Index
Human Capital Index
Working Age Population
Household Expenditure Per Capita
English Language Capabilities
Cost of Living Plus Rent Index
#70/195
#104/180
69%
67 M
$1.4K USD
#65/100
38% NYC Prices
No Data Found
Per capita expenditure:
$1,400 USD
67 % (Southeast Asia 63%)
Shop online:
32%
159%
Primary messaging:
Facebook Messenger
Primary website:
Facebook/ Youtube
No Data Found
No Data Found
Relevant Laws:
Article 6, Law on Investment (2020) / Law on Enterprise
Time to Incorporate:
5 to 15 days to incorporate
$150 USD for government fees; some additional legal fees depending on business
No minimum capital requirements except in certain fields (banks, finance, insurance, language centers)
Business dependent, 15% average rate
Restrictions:
100% foreign ownership possible through a LLC or JSC (Joint Stock Company), although there are tax and legal benefits for joint ventures; some sectors restricted for foreigners
Trends:
Government reforms are making it steadily easier for foreigners, especially joint ventures with Vietnamese companies or activities in Special Economic Zones (SEZs)
BBA retains several staff members in Vietnam to include an attorney skilled in market entry procedures. BBA can assist SMEs in most sectors and find trusted local partners, among other services.
