The Benefits of Investing in Vietnam - A Complete Guide

Posted by Stieve Jack on April 20th, 2021

Do you want to start your business in Vietnam? It has the fastest-growing economy. Moreover, it is the third-largest market in Southeast Asia. Vietnamese is the official language of Vietnam. It is native to 70 million people. When starting a business in a foreign land.

The biggest hurdle comes when you are unable to communicate in their language. Language service providers in the world have solved this problem. Therefore, for starting a business in Vietnam, you need Vietnamese translation services. It will mitigate the communication barriers and help in the smooth running of business operations in Vietnam. Let's have a look at why you need to invest in Vietnam.

Strategic Location

Vietnam is situated in the center of Southeast Asia. Moreover, it shares its boundaries with the top economy of the world which is China. Also, it shares its coastlines with international shipping routes that make it a primary location for doing business.

One important thing to note is that the major cities of Vietnam also have a very good strategic location. It has Ho Chi Minh City in the south and Hanoi in the north. Having the two most important cities on both ends of the country makes it the best place to start a business. However, business opportunities are not limited to these two cities.

The other city Da Nang also possesses a lucrative business opportunity. You can avail all the business opportunities and penetrate successfully in the Vietnam market if you can communicate them in their native language. Here you need the services of language translation services.

Doing Business is Easy

According to the business 2020 report, the world bank has ranked Vietnam at 70th position out of 190 economies. Moreover, it has given a score of 69.8 and 1.44 points higher than the previous years.

The Vietnam government has made great improvements in the process of paying tax. Vietnam's department of general tax has upgraded its IT infrastructure. To understand the tax system of Vietnam, a foreign businessman needs the assistance of financial translation services so that they can settle their taxes much faster than before.

Trade Agreements

Vietnam has done several trade agreements. Therefore, these agreements have made doing business in Vietnam much easier. Trade agreements played a significant role in enhancing the country's economic growth.

The trade agreements done with the World Trade Organization have paved a way for foreign investors to set up a business easily in Vietnam. It also offers tariff reductions through trade agreements like a free trade agreement with the European Union. The other important agreements include

• A free trade agreement with Korea

• A free trade agreement with Japan

• A bilateral trade agreement with the US.

• Member of ASEAN and ASEAN free trade area

To understand these trade agreements, foreign investors should go for language translation services. This will make them understand the trade agreements well.

Government Encourages Foreign Investment

Many governments of the world impose restrictions on foreign ownership in some industries. But in the case of Vietnam, the situation is entirely different. Therefore, the Vietnam government encourages foreign direct investment. Moreover, the government has given leverage in some business rules. It is also giving incentives to foreign investors so that they invest more in their country. Some of the incentives include

• Lowering down of corporate income Tax and Exemption of several industries from the tax and income tax.

• Exemption from import duties certain raw materials.

• Exemption of some lands from rental.

Foreign investors can take advantage of these incentives while investing in preferred industries. The Vietnamese government is also offering incentives for setting up business in certain locations. The foreign investor can understand these incentives if take the assistance of professional translation services.

Low setup costs

For setting up a business in Vietnam, there are no minimum capital requirements. Therefore, you need to present a reasonable amount so that you can start your business. Your capital should cover the operating costs so that your business becomes self-sustaining. To have an understanding of low set costs you require financial translation services. Therefore, you can make a rational investment decision.

Growing Population

Vietnam has a growing population of 97 million. Therefore, it is the 15th largest population in the world. From the last few years, the population of Vietnam increased to 1%. According to the worldometers, the population of Vietnam will reach 104 million by 2030. Therefore, to cater to such a larger target market, foreign investors must communicate with them in their native language. Here the language translation services will help them out.

GDP Growth

Vietnam is one of the fast-growing economies of the world. It has seen stable economic growth for the past few years because of the 1986 reforms. It is predicted that by 2050, Vietnam will be the 20th largest economy in the world. The important thing to note is that in 2020, despite the pandemic the economy of Vietnam will show 3% growth. Such stable GDP growth is enough for you to start a business in Vietnam.

Infrastructure Developments

The Vietnamese government is working continuously to improve the infrastructure of the country. The infrastructure of the country is very important for business success. Convenient transportation and shipping will help in conducting business operations swiftly. 

The Vietnam government is building express highways, airports, and ports for foreign businessmen. These projects will also enable foreign businessmen to work with the Vietnam government. For understanding the government policies, the foreign investors should take the assistance of a professional translation company.

Competitive Labor Costs

Despite a stable GDP growth rate, Vietnam is one of the lower labor cost countries in the world. The minimum wage rate in Vietnam is half less than the wage rate in China.

Due to rising labor wages in China, many manufacturing companies and investors are moving to Vietnam. With the competitive labor costs and stable economy, Vietnam is a better substitute for China.

Wrapping Up

You can understand all the business opportunities  in Vietnam when you can communicate with the government and legal authorities and  the target audience in their native language. For this, you need to hire a professional translation company that can provide you with impeccable Vietnamese Translation Services at a fast turnaround time.