Many factors go into making a business successful, and where it is located can be the first major decision for investors and entrepreneurs and Vietnam is one of the best options
According to the U.S. News & World Report, the Best Countries to Start a Business ranking draws from the results of a global perceptions-based survey and ranks countries based on scores from nearly 4,919 business decision-makers in a compilation of five country attributes: affordable, bureaucratic, cheap manufacturing costs, connected to the rest of the world, and easy access to capital.
Following the recovery from the end of 2021 after the impact of the COVID-19 pandemic, many foreign-invested enterprises have set-up new business, stabilized and expanded their production and business activities in Vietnam.
According to Sophie Dao, Senior Partner at Global Business Services (GBS) LLC, the result manifested the attractiveness of the Vietnamese market and foreign investors’ confidence in Vietnam’s capacity in controlling the pandemic and its economic recovery as well as the effectiveness of measures taken by the Government to accompany and support businesses.
Despite the impact of COVID- 19 pandemic, many foreign investors have remained optimistic about the business and investment environment in Vietnam, and affirmed that Vietnam will still be a top choice for their new and expanded projects, Sophie added.
Curving along the eastern edge of the Indochina Peninsula, Vietnam shares long stretches of its borders with Cambodia, Laos and the South China Sea. Occupied by the French until 1954, a communist state emerged in 1975 after the People’s Army of the north and Viet Cong guerilla fighters defeated the anti-communist south. The bitter war garnered international attention and participation, especially from the United States, at a critical juncture in the Cold War era in which communism was gaining ground on the global stage.
“Doi moi” economic policy reforms beginning in 1986 have helped Vietnam transition to a more modern, competitive nation. State-owned enterprises and agriculture, which once monopolized the economy, are losing prominence as the nation works to achieve sustainable development through more open trade and industry, including food processing, garment manufacturing, machine-building and mining. The United States is now the nation’s most prominent trade partner, a position reinforced by former President Obama’s visit to the country in 2016, following by Donal Trump and recently was the Vice President Kamala D. Harris.
Vietnam is densely populated and growing quickly, with about a third of the population living in bustling cities. Ho Chi Minh City is the most populous city in the country. War ravaged much of Vietnam’s landscape, but fantastic caves, imperial landmarks and emerald island coves remain. Pho, a brothy noodle soup, and a growing culinary arts scene have garnered global attention.
Vietnam’s continued efforts to lessen international isolation are evidenced by its membership in the World Trade Organization in 2007, and upon its accession promised to fully comply with WTO agreements on Customs Valuation, Technical Barriers to Trade (TBT), and Sanitary and Phytosanitary Measures (SPS). The United States and Vietnam concluded a Bilateral Trade Agreement (BTA) in 2000, which entered into force in 2001.
Vietnam is a member of the Association of South East Asian Nations (ASEAN) and subsequently, a member of ASEAN Free Trade Area (AFTA). As part of AFTA, ASEAN members (including Brunei, Philippines, Indonesia, Laos, Myanmar, Malaysia, Singapore, Thailand, and Cambodia) are committed to making this region a competitive trading area. Together with the ASEAN countries, Vietnam has also signed trade pacts with PRC, the Republic of Korea, Australia and New Zealand, India, Chile and Japan. It signed a bilateral trade agreement with Korea in 2015, as well as a trade agreement with the Russian-led Customs Union block. In 2019, Vietnam signed a free trade agreement with the EU. This agreement came into effect in August 2020. Vietnam is currently negotiating a free trade agreement with the EFTA countries (Norway, Iceland, Liechtenstein, and Switzerland).
In addition, Vietnam signed the Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP) with 10 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore. The agreement officially took effect from January 14, 2019 for Vietnam.