Good time for Foreign Investors to Do Business in Vietnam

 

For over 30 years, Vietnam has transformed from a country severely affected by the war to a middle-income nation, by 2014, with US$2,200 per capita. In the first 9 months of 2015, according to the official statistics, Vietnam's GDP has reached 6.5 percent and its GDP is expected to be over 6.5 percent for a whole year. This is the highest growth rate since 2011. According to many internal and external economists, Vietnam is one of the few countries in the world with continuously high growth in the current period.

 

Optimistic about the macro economy in the future, Prime Minister Nguyen Tan Dung reviewed that currently, Vietnam's economy is entering a new growth trajectory with macroeconomic stability, faster growth, low inflation for a goal of sustainable development with GDP growth of 6.5-7 percent per year over the period of 2016-2020. Trade turnover of Vietnam has increased by an average of about 12-15 percent per year. By 2020, it is expected to reach US$600 billion. By the end of 2015, the GDP per capita is expected to reach US$2,230 per capita.

 

Prime Minister Nguyen Tan Dung also expressed his confidence in the international trade agreements that will be signed to contribute to elevating Vietnam's economy in the international arena. Specifically, Vietnam and the member countries are striving to reach the goal of building an ASEAN Economic Community by the end of 2015. Besides, Vietnam signed eight Free Trade Agreements (FTAs) and at the beginning of 2015, the FTAs with South Korea and EEU were signed. Vietnam is the first country in ASEAN that has completed negotiations of the FTA with the European Union (EU). Vietnam has concluded negotiations with 11 partner countries of the Trans-Pacific Partnership (TPP). Accordingly, the FTA opens a wide free trade between Vietnam with 55 partners, including all G-7 members and 15 members of the G-20.

 

Minister of Planning and Investment Bui Quang Vinh reviewed that Vietnam has high prospect to attract FDI. Thus, in the first 9 months of 2015, the FDI into Vietnam reached over US$17 billion, up 53.4 percent ​​over the same period of the last year. The FDI's disbursement reached more than US$9 billion, up 8.4 percent.

 

According to Mr Nguyen Duy Hung, Chairman of Saigon Securities Inc. (SSI- HOSE), compared with 10 years ago, Vietnam has gorgeous growth. Vietnam's economy has advantages of a stable and low risk economy that is less affected by the crisis. Vietnam has a domestic market with great power purchasing of over US$5,000 per person. This means that a lot of foreign manufacturers could join hands with Vietnamese businesses to provide products for the Vietnamese market.

 

Mr Alain Cany, Chairman of Jardine Matheson Vietnam, said that high- quality young labour force with qualifications and skills is one of the great attractions of Vietnam to foreign investors. However, to compete with other countries in the region and attract a sustainable flow of FDI, the Government of Vietnam should continue to accelerate the equitisation to create equal business environment for all economic sectors to invest in.

 

According to Jonathan Choi, President of the Sunwah Group, Vietnam's economy has fluctuated but it is clear that opportunities are returning to Vietnam. The FDI's inflows and foreign investors are returning to Vietnam. It is important that Vietnam has recently developed pretty good relations with major powers such as the US and Japan so there are many opportunities for Vietnam to expand its investment policies towards a market economy.