Vietnam’s shift from a centrally planned to a market economy, over the last 30 years, has remarkably transformed the country from one of the poorest in the world into a lower-middle income country. After decades of neglect, the international audience has noticed Vietnam’s achievements and its ongoing global integration and the country is now seen as one of the most dynamic emerging countries in Asia and the World.
In 2016, the World Bank already classified Vietnam as a middle-income economy and PwC, on a long-term horizon, expects Vietnam to be the top fastest growing economy until 2050 with an average growth of 5%.
The historical and estimated future growth prospects, prudent government reforms, beneficial trade agreements with major trade partners around the world and increasingly internationalized foreign investment laws has led to an influx of both direct and indirect foreign investments.
Vietnam, after all, has emerged as production hub for high-tech products, where Intel produces 80% of its personal-computer processing units. Also noteworthy is that 1 out of 10 smartphones are nowadays produced in Vietnam.
Our optimism to invest in Vietnam is built in 4 key pillars
INCREASING GLOBAL RELEVANCE
Fast-paced global integration
Vietnam, which joined WTO in 2007, is committed to the long-term objective of global economic integration through participation in many international organizations and trade agreements.
The country also holds political and economic memberships in 63 international organizations, including the WTO.
Vietnam is a member of the ASEAN-10 (10 countries in South East Asia), an association that has nearly eliminated all trade barriers among themselves. Vietnam is also the only country in ASEAN, besides Singapore, that signed a bilateral trade agreement with the EU.
Furthermore, Vietnam has signed and implemented bilateral trade agreements with many countries including the U.S., Japan, ASEAN-10, Australia, New Zealand, China, India, and the latest deal with Korea.
Vietnam is a member of:
Vietnam has bilateral agreements with:
Accelerating FDI & trade flows
Openness to the global economy is paying off. Vietnam is lucky to be sitting on China’s doorstep as companies hunt for low-cost alternatives. Other countries in South-East Asia, equally well positioned than Vietnam, have done less well.
Vietnam has clearly emerged as export giant as they accounted for 100% of Vietnam’s GDP in 2017. Other SEA nations like Malaysia and Philippines stand at 70% and 30% respectively.
FDI disbursement from 1990 – 2017
Export value from 1990 – 2017