Vietnamese government support
The Vietnamese government’s commitment to a diversified economy has contributed to the development of trade, especially in the manufacturing sector. Measures such as infrastructure development, international free trade agreements, tax breaks, education, and training contribute to business growth. Thus, the market presents a favorable climate for business growth, which can attract new international investors to contribute to the development of the country.
Government Growth Plan
On this infrastructural plan, many advances are noted on the railroads, road and maritime, it is the case of the city of Hanoï and all around the south. Training and education measures for the acquisition and diversification of skills in order to boost the market and to be in line with the skills demanded on the world market. In addition, a light tax policy that attracts potential international investments. This tax incentive contributes to the development and construction of the country. For example, a low tax rate, or even a tax exemption, can be granted to companies wishing to build Vietnamese soil and participate in the growth of the country’s economy. In the same vein, 12 free trade agreements will be signed in 2021 and in particular a trade agreement between the United States and Vietnam signed since 2001. These partnerships, or even agreements, facilitate the acquisition of raw materials, the export of goods in the world. Below are important agreements that have impacted business growth in Vietnam: ASEAN (Association of Southeast Asian Nations) and RCEP (Regional Comprehensive Economic Partnership).
Commitment to a green industry
By 2050, the Vietnamese government aims to reduce carbon emissions and become greener in relation to the growth of industrial activities. To this end, a commitment has been made to the sustainable development of manufacturing. The benefit of this commitment encourages manufacturers to use and implement cleaner and more environmentally friendly manufacturing measures. Moreover, these ecological policies are attracting more and more companies concerned about their image and the environment.
Find a reliable partner
Finding the right partner is a complex task. Thus, many factors must be taken into account, especially when your search is international access. Already, it is essential to know the cultural values, the social, economic and political issues of the country where you want to do business. But also to know the strengths and weaknesses of your partner’s company in order to avoid any surprises.
Attention
If your product requires technological input. It is important to also focus on this point when looking for partners, because in Vietnam, not all suppliers have state-of-the-art technological equipment. It is undoubtedly that China excels more than Vietnam at the international level. And this thanks to its technological capacity and its diversified skills. The only downside of the Vietnamese market comes from its inability to meet all the needs of the international market, especially those requiring a technological touch.
