6 reasons why Vietnam is the promised land for investment
Why invest in Vietnam?
Is the country worth the hype?
In recent years, Vietnam is step-by-step earning its title as one of the best markets for growth in Southeast Asia — the buzzing business hub of the world. In 2019, the country was ranked 8th among the 29 best economies to invest in by World Bank, and here are the reasons why:
- Young and fast-growing market with heightening purchasing power:
In recent years, Vietnam is transforming at a rapid pace. From 2005 to 2016, Vietnam’s GDP per capita tripled from more than $600 per person to almost $2,185, empowering its consumers with significantly more purchasing power. Vietnam has one of the fastest-growing middle-class in the region; the upper-middle income class is predicted to grow from less than 1% in 2011 to almost 10% in 2030. Demand for consulting services into IT, HR and business development has gone up by 40% in the last few years. We can say that Vietnam is still in its growing phase within the product life cycle, and the market is open for business for both start-ups and established entities.
2. Economic and political stability
Although many people still associate the word “Vietnam” was with images of war, destruction and poverty. It is time to change that perception. Vietnam now emerges as a haven for investment. The political situation in many countries, such as Thailand, Indonesia, China, Hong Kong, has become complicated and uncertain, causing concerns among investors. Foreign investors thus consider moving their capitals and resources to Vietnam, to utilize its social stability, steady economic growth, and increasingly advantageous conditions for doing business. A recent example, many companies are moving their factories out of China to avoid dire consequences from the U.S. — China trade war, making Vietnam into a promising destination.
The government’s success in controlling COVID-19 in Vietnam also demonstrates its capability to communicate with the publics to call for their cooperation.
3. Openness for trade:
The Vietnamese government has put continuous efforts to open and integrate its local economy into the global economy. Besides being a member of the World Trade Organization (WTO), Vietnam has also participated in many international cooperative agreements, including various free trade agreements (FTA) with a number of regional and global partners. Most recently, Vietnam ratified for The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, opening up new opportunities for free trade within the members.
Of course, there are other reasons, including the topnotch talent and modern infrastructure, Vietnam’s rich natural resources, and economic and political stability. The country’s success in controlling COVID-19 also adds in some attractiveness to the market.
Find out more details in the original post at EloQ’s blog.
The article was written by:
Dr. Clāra Ly-Le, Managing Director of EloQ Communications. She is a professional PR consultant with many years of experience in executing many successful PR and IMC campaigns in Vietnam and international levels. Her research interests include crisis management in the social media landscape and new media communication.
Hanh Le, Assistant to Managing Director at EloQ Communications. Hanh is supporting EloQ in connecting and maintaining relationships with more than 10 partner agencies in Asia and other global PR networks to execute global projects, as well as to leverage service quality in the communications industry.