Due to its strategic partnerships, Vietnam has been enjoying an incredibly strong economic development. Its GDP growth in the last two decades has been among the fastest globally, and Vietnam has become one of the most sought-after investment locations in Asia and throughout the world.
According to World Bank analysts, Vietnam’s growth is explained by three main factors: trade liberalisation, domestic reforms welcoming foreign investments combined with lowering the cost of doing business, and investments in education and human capital development.
The above changes, combined with political stability and the government’s drive to engage Vietnam in favourable agreements and treaties, have created an opportunity for international investors to take advantage of the regional growth prospective and focus their attention on Vietnam.
Vietnam has been a member of ASEAN since 1995, APEC since 1998 and WTO since 2008. It has recently joined China and 13 other Asia-Pacific nations to sign the RCEP to form the world’s largest free-trade bloc. The latter, according to Vietnam, will account for 30% of the global economy, 30% of the global population and reach 2.2 billion consumers. Despite all the positive development, Vietnam’s business environment still presents many challenges to foreign-driven investment, and investors need to be aware of local regulations and sector-specific requirements before embarking on their investments projects.
GDP growth (2019)***