Why Invest in Vietnam
Fast growing economy with a large and young labour force
According to the Asian Development Bank (ADB), Vietnam is forecasted to be one of the fastest growing economies in Southeast Asia, despite the impact of COVID-19. Vietnam’s economy has shown strong growth within the last 5 years due to high domestic demand, a strong manufacturing and processing industry, and high Foreign Direct Investment.
In addition to its fast growing economy, Vietnam boasts a labour force of almost 60 million workers, half of whom are below the age of 39. The government has focused on education reforms and policies that have helped advance the labour force with vocational training. The government introduced reforms that help increase productivity, skills, and quality of labour. Almost 95% of the labour force is literate, with 5% being English proficient and 10% being considered as “Highly skilled”.
Another competitive advantage, making it attractive for investors is its competitive minimum wage compared to other Asian countries in the region. The range of minimum wage ranges between $132 to $190 per month depending on the economic region. With these competitive rates, many foreign investors and manufacturers are looking to relocate from China to Vietnam as an alternative production base.
Some large manufacturers and their respective supply chains have already made the move. Queen Bees such as Foxconn, Panasonic, LG, Google, Intel, and others have shifted or diversified their production and supply chains to Vietnam. This shift is further enticed by the Government’s support of FDIs through low taxes and Free Trade Agreements.