Looking to expand into Vietnam? Now’s the time to do it!

Vietnam is primarily an agricultural nation but it’s come a long way, and it is now looked upon as a symbol of a “success story” in terms of its growth and development. From a nation of extreme poverty, it has reached the much-touted status of a middle-economic country. Although the country is a socialist republic, the Government of Vietnam is optimistic about reforms in every aspect of life and the economy.

Economic reforms have taken place since the time of Doi Moi in the 1980s. This has been a precursor to the change in Vietnam’s economic state today. As a result of advantageous trends globally, Vietnam has propelled itself from being extremely poor to a nation with a more than hopeful economic future. In the years spanning 2002 to 2021, the GDP per capita rose 3.6 times. Poverty rates (at US$3.65 a day, 2017 data) went down from 14% in the year 2010 to 3.8% in the year 2020.

The Economy in Vietnam – Rising From the Ashes

Thanks, in the most part, to its robust foundations, Vietnam’s economy has displayed resilience, especially through various crises, including the recent COVID-19 pandemic. Throughout the course of the global pandemic the GDP growth declined to 2.6% (2021), however, this is predicted to experience a rebound effect to 6.7% by 2023. Challenges may well lie ahead in Vietnam’s road to a full-fledged industrial overhaul, but the road there looks promising to Prime Minister Pham Minh Chinh. The Prime Minister has reiterated in many speeches that Vietnam would see an increase in its GDP, forecasting it to reach 8% soon. 

A Buzzing Economy

In the time after the pandemic, with the lifting of lockdowns, there has been a fair deal of growth in Vietnam. The government is committed to making the economy work, and although the nation has a great deal to do to reach tech-savvy standards of its counterparts like India, it is getting there. The Vietnamese economy is humming along nicely, but steadily. 

Analysts state that this is a good sign for any emerging marketplace. Investors from abroad have also shown significant interest to invest in the small archipelago, so the prospects for economic growth really are on the positive side. 

Among some of the key variables keeping Vietnam’s economy afloat, is government investments in the nation’s infrastructure development. The government strongly believes that the building and construction of new roadways will go a long way to promote easy access to trade and commerce. 

Vietnam is also busy building thermal and renewable energy power plants, not to mention factories to meet a growing demand for certain products. Old machinery that has now been banned makes way for new hi-tech device incorporation in every sphere of Vietnam’s industrial universe. 

A Player in Global Trade

In the last few years, Vietnam has worked hard to actively play a role on the global trade and commerce stage. The economy in Vietnam needs this boost to establish itself as an international market. Trade agreements of a bilateral nature have been signed and sealed with several countries in the East and West alike. With this increase in exposure, Vietnam has been a vital part of ASEAN. Due to its active membership, it has the ability to take part  in a number of FTAs which have been agreed and signed off by the bloc. 

The standards of manufacturing, quality of products, and the rights of employees are assured by these agreements, allowing Vietnam’s transformation into a hub for manufacturing and export. Additionally, in spite of the pandemic, Vietnam has had an encouraging phase of exports with the signing of agreements with the EU, Canada, Mexico and the UK. 

Get Into the Vietnamese Business Space

Vietnam couldn’t be more clear in its message that it is “open for business” from other countries. Setting up an extension of your business in Asia, including Vietnam, is easy if you place your trust in the Seamless team. We can help you expand and get going with your business in any part of the world. Visit us at https://seamlessglobal.co/ to find out more.