Vietnam’s successful containment of the COVID-19 pandemic and the recently ratified Vietnam EU Free Trade Agreement (EVFTA) has reassured investors. Upbeat manufacturers have even relocated production to the country. In the third quarter of the year, manufacturing and exports saw GDP increase 2.62 percent year-on-year. Economic recovery accelerated from the first half due to successful containment of the pandemic and demand from overseas. Vietnam is expected to be one of the few countries to record net positive growth after China this year despite the pandemic.
It is then no surprise that while Vietnam’s borders remain closed, we continue to receive inquiries from foreign businesspersons wanting to enter the country for business purposes, including scoping out investment opportunities and site visits to industrial zones and production facilities.
In this context, it is important to understand Vietnam’s vast key economic regions tailored to specific industries – providing special incentives, cost structures, and clear regulatory frameworks. This will help investors uncover opportunities and challenges in a rapidly growing market. Businesses need to have an international operational strategy, locating operations in the right region that offer connectivity with global supply chains, a supportive business environment, and access to local talent.
In this issue of Vietnam Briefing magazine, we look at the Southern Key Economic Region and the reasons why it is termed as an investment hub of the country. We go in-depth and look at six economic hubs in the region and the factors that make it so competitive. We also include the government’s plan for the region, including investment incentives and attractive tax rates for specific industries.
This magazine is based on Dezan Shira & Associates’ years of experience in supporting foreign enterprises in Vietnam. For more information and advice on how to plan for market entry or relocating your production into Vietnam, please contact us at firstname.lastname@example.org