From technology to infrastructure, and anywhere in between, international companies have plenty of investment opportunities in Vietnam. Charlie Humphrey of Asia House prepared for the scene.
According to “Asia Outlook” magazine, it was 1985 and Vietnam was one of the poorest countries in the world. After the end of the 20-year Vietnam War, Vietnam was in disrepair, and the subsequent five-year centralization plan implemented by the Communist Party of Vietnam did not bring the country into a new and prosperous era of GDP per capita of about 200 to 300 dollars.
In the blink of an eye, it’s 2019. Vietnam has now become one of the stars of emerging markets, with export income exceeding $223.9 billion of GDP, equivalent to $2343 per capita, which has increased tenfold in the past 25 years.
Needless to say, this rapid economic development is an unprecedented miracle. The World Bank describes it as one of the most dynamic emerging countries in East Asia. The transition from a centrally planned economy to a market economy has transformed Vietnam into a prosperous low- and middle-income country.
It is now a transparent business environment, with an annual GDP growth rate forecast of 6.8% and adopting advanced internationalist policies. Its prospects look very bright.
“You can really feel the buzz of entrepreneurial spirit. There’s a growing understanding of the international markets, making it easier for people from all walks of life to engage with the country for both business and pleasure. It’s vibrant, with a large population and an ideal location nestled on the edge of ASEAN and looking our across the Pacific.”
Asia House is a London-based organisation positioned as a centre of expertise on trade, investment and public policy, helping to showcase the opportunities presented by countries like Vietnam, amongst others, to the western world.
Company formation in Vietnam
part of this mandate, the organisation recently signed a memorandum of understanding with the country’s Department of Foreign as Affairs for Provinces aimed at promoting trade and investment relations between Vietnam’s hinterland regions and UK stakeholders.
“We decided that, given where Vietnam’s trajectory is and what its trying to do – open up its economy to international investment – we could help to facilitate a better understanding of the opportunities,” Humphreys explains.
“The aim is to help both international companies looking at Vietnam and also local Vietnamese companies looking to engage in international markets.”
Mapping out the opportunities
So, why should companies, UK-based or otherwise, be excited when they look at Vietnam?
Posed this same question, the Director of Corporate Affairs responds by citing numerous developments underway across the country, from policy changes to grassroots innovations.
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