The reopening of the Vietnamese border has helped most business activities resume. Many investors look to the booming real estate market in hopes of investing in Vietnam.
Find out in this article 3 top reasons why Vietnam is a worthy destination for foreign investors.
Trade Agreement Incentives
Vietnam has signed a number of trade agreements to make business start-ups even easier. These trade treaties make it easier for foreign investors to set up a business and take advantage of cheaper rates, especially when planning to buy property abroad. Below are some of the major trade agreements:
The EU-Vietnam trade agreement is the EU’s most comprehensive trade agreement with a developing country. EU-Vietnam trade deal expected to abolish tariffs on 99 percent of all goods traded between the two nations.
###: Top 4 Top Reasons to Invest in Vietnam Right Now
The Association of Southeast Asian Members (ASEAN) Free Trade Zone (AFTA) is a trade agreement that encourages local trade and industry in all ASEAN countries while enabling economic integration with regional and international partners. AFTA’s primary objectives are to strengthen ASEAN’s competitiveness as a global industrial base by removing tariffs and non-tariff barriers within ASEAN and attracting more foreign direct investment into the area.
UK-Vietnam Free Trade Agreement: According to the British government’s publishing services, 65 percent of all tariffs have been eliminated since the EU-Vietnam Free Trade Agreement came into effect. Rate reductions will reach 99 percent after 6 to 9 years. As a result, shoppers and businesses will benefit from lower prices for clothing, fabrics and footwear.
Vietnam is a politically stable country governed by the Communist Party of Vietnam (CPV). The primary goal of the government is economic growth, as well as the maintenance of the one-party state structure, territorial integrity and social order. It aims to be middle-income by 2025, higher-income by 2030, and high-income by 2045.
In addition, Vietnam’s economy has changed dramatically, with millions of people lifted out of poverty. Despite the COVID-19 epidemic, it remains one of the world’s fastest-growing economies, with GDP expected to grow at 2.9 percent for 2020 (the country’s economy grew 7 percent in 2019). According to the IMF, the country’s GDP is expected to reach $341 billion, ranking it 38th and 4th globally in ASEAN, making it an attractive investment destination for global investors.
A shift of the Chinese supply chain
As the United States enforces tariffs on Chinese goods, Vietnam appears to be one of the countries that will benefit most from companies looking to diversify outside of Asia’s main industrial powerhouse, China. Analysts say the epidemic has highlighted the need for companies to diversify their supply chains outside of China, where the crisis began, and harness the potential of emerging economies such as Vietnam.
Invest in Vietnam now!
With these advantages, there is no doubt that Vietnam will remain a sought-after investment location for years to come. Foreigners can invest in Vietnam by taking advantage of the stimulating trade agreements, peace and supply chain shifts from China.
This article was written in collaboration with Homebase, a prominent proptech company in Southeast Asia that makes homeownership more accessible to buyers. They are backed by multi-billion dollar global funds such as Y Combinator and Antler. To get started, call (+84) 964 245 404 or fill out a form online†