Vietnam can provide many potentials for foreign investors and is known as the second China. It has been a long time for Vietnam to have today’s booming economic performance. According to the World Bank, Vietnam has been removed from the list of the world’s poorest countries and has become a low- and middle-income country.
Strategic trade contracts put Vietnam in an advantageous position: Vietnam has signed several trade contracts with promising prospects. As a member of ASEAN, Vietnam can benefit from the ASEAN Free Trade Area (AFTA) because the country can enjoy lower regional tariffs through the ASEAN’s Commonly Effective Tariff Preferences (CEPT). In addition, Vietnam has very close relations with the European Union and China. The free trade contract between Vietnam and the European Union is expected to be approved this year.
As we known, Vietnam is a difficult place to set up a company . However, with the revision of the policy and the government’s efforts over the past decade, this situation has improved. Among them, most of the compliance procedures have been digitized. The time for company registration to be approved has also been shortened by 30% to 50%.
The Vietnamese government has introduced many pro-business policies, including revisions to value-added tax and corporate income tax. At the same time, in response to foreign companies applying to establish local companies, the government also sets a deadline for approval of applications to various agencies.
Not only after upgrading the automated cargo clearing system, extending the operating hours of customs, Vietnam’s import and export procedures have also been improved. The time for customs clearance has been shortened and the transparency of the customs clearance process has been improved.
The Chamber of Commerce in Vietnam continues to make recommendations, and the government is willing to adopt it to shape the country into an easier place to business.
Vietnam is cultivating talents cater to demand: due to a large number of cheap labor, its identity as a manufacturing exporter has gradually become widely known. The minimum monthly salary in Hanoi and Ho Chi Minh City is only 3.9 million VND (about $172).
The World Bank report shows that more than 90% of the employed population in the country is literate, which is higher than other countries with similar economic growth.
Vietnam’s has well developed: the Vietnamese government has been promoting new projects and upgrading existing projects, such as highways and shipping ports.
Upgrade and build roads, bridges and railways; improve the power grid capacity and reliability of Hanoi and Ho Chi Minh City; build and develop industrial parks and centers; and expand existing port capacity.
As a result, the railway connection between Ho Chi Minh City and Hanoi has been improved and the country’s roads have been renovated. At the same time, the government has also built power plants.
Cooperate with experts in Vietnam: For companies that want to enter ASEAN and the Asia-Pacific region, Vietnam has a rich business environment. However, before the investment is implemented, foreign investors and multinational companies must carry out appropriate and sophisticated audits, or cooperate with local experts such as YAXIN, more successfully register their company with local regulations.
According to YAXIN’s recent corporate compliance index research, Vietnam ranks eighth among 84 countries in the world. In order to enhance the country’s transparency, Vietnam has individually published and implemented specific legal documents for different areas, aiming to cater to global changes.
YAXIN Vietnam office can provide you with assistance in all aspects, including establishment of a company, accounting and reporting, corporate secretarial, human resources and salary services. We have offices in Hanoi and Ho Chi Minh.
If you are interested in learning more about our services, please contact us.
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