WHY VIETNAM? It’s the 3rd Fastest Growing Major Economy in the World in 2024. 6 Key Reasons You Should Consider Vietnam.
1. Growing Economy
GDP forecast at $468.5 Billion USD (2024), growth forecasts at 6.1 %. This is driven by manufacturing, Foreign Direct Investment ($36.6 Billion USD in 2023), and an expanding domestic market, solidifying its role as a ‘regional powerhouse’ in South East Asia. Vietnam is projected to have the highest FDI in SEA over the next 10 years – further driving growth.
2. Large Consumer Market
Vietnam’s population exceeds 98 million, with a youthful demographic & rapidly growing middle class, this is creating significant demand for high quality products & services. Over the next decade an estimated 30 million Vietnamese will enter the relative middle class.
3. Political Stability
The one party government focuses on economic development, fostering a predictable and secure environment for operations. The CPV aim is for Vietnam to become a ‘middle income’ country by 2025, an ‘upper income’ country by 2030. The political & business environment is hospitable & welcoming.
4. Cost-Competitive Advantage
Vietnam offers globally competitive labor costs, benefiting manufacturing & export-driven industries by reducing operational expenses. Many speculate that with higher tariffs on China, Vietnam will be a key beneficiary.
5. Strategic Location
Positioned at the ‘crossroads’ of Southeast Asia, Vietnam provides access to a regional market of over 650 million people, making it ideal for cross-regional distribution, trade & operations.
6. Favourable Trade Agreements
Vietnam has numerous FTA’s, including agreements with the UK, EU, US & Japan which lower tariffs & improve market access for foreign investors. In all, Vietnam is a signatory to 18+ active and planned, bilateral and multilateral Free Trade Agreements.
See the full report by British Chamber of Commerce Vietnam
(Sources : British Chamber, Euro Monitor, World Bank, Benji Lamb)
