Vietnam’s government has shown significant effort towards improving the country’s economy and society which makes it an ideal spot for businesses to open in. Vietnam has the third largest economy in Southeast Asia. From January to October 2019, foreign direct investment (FDI) in Vietnam increased from 7.4% to $16.21 billion USD. A pro-business government, young demographics, openness to foreign investment, and multiple free trade agreements are all good reasons to start a business in Vietnam.
Keep reading for the top four benefits of doing business in Vietnam.
Government Support to start a business in Vietnam
The Vietnamese government understands the economic impact that comes with foreign investment. Therefore, the government has put in efforts to reform Vietnam’s socio-economic status. The Socio-Economic Development Plan (SEDP) for 2016-2020 was implemented to develop Vietnam into a more competitive and established country.
The SEDP promotes entrepreneurship in Vietnam, including setting up training centers and venture capital funding. The government also supports businesses in research and development. The SEDP improves international relations within the Association of Southeast Asian Nations (ASEAN) and the United Nations. Through international cooperation, the Vietnamese government wants to strengthen regional and national defense, security and sovereignty. The SEDP also aims to reform education towards a more open and comprehensive approach that emphasizes life skills. Vietnam will develop into a knowledge economy that boasts a high-quality workforce in the science and technology. A pro-business government makes Vietnam a prime location to cultivate business.
Openness to Foreign Investment
Vietnam has encouraged FDI by r