Located in the cradle of Southeast Asia, Vietnam’s advantageous geographic location can serve as a launch pad and home base for what is already the largest collection of people on earth (the combined populations of ASEAN along with China, Japan, South Korea and Chinese Taipei account for over 2 billion people).
Vietnam has boosted its international economic integration as it has signed a number of free trade agreements, including with the Eurasian Economic Union, the European Union, South Korea, and the Trans-Pacific Partnership. At the same time, the ASEAN Economic Community was established on December 31, 2015, and is likely to create more opportunities for the country to integrate further with regional and global economies. While global integration has advanced well with Vietnam embedding itself in global value chains, the benefits are constrained by the absence of linkages with domestic firms.
In a region of the world where some countries remain vulnerable to political and economic instability, Vietnam has benefited from its stable government and social structure, making it an ideal place for capital investment.
Vietnam remains one of the fastest-growing Asian economies with high GDP grow in recent years, based on the power of FDI and the private sector. Since 1990, Vietnam’s GDP per capita growth has been among the fastest in the world, averaging 6.4 percent a year in the 2000s.. Vietnam’s economy continued to strengthen in 2015, with an estimated GDP growth rate of 6.7 percent. Vietnam’s economic activity moderated in the first half of 2016, with GDP expanding by 5.5 percent, compared to 6.3 percent over the same period in 2015. This slow-down is considered a result of severe drought–affecting agricultural production–and slower industrial growth.
Vietnam has a population of 91.7 million people (13th largest in the world) expected to grow to 100 million in 2020 with an annual growth rate of 1.2%. Over 50% of the population is 25 years or younger. Possessing, highly skilled, young workers with an extraordinary work ethic and literacy rate of more than 90%, the Vietnamese are equipped with a high level of education and are prepared to serve in high skilled industries like information technology, pharmaceuticals and financial services, at a more competitive cost than other countries in the region.
Before joining WTO, Vietnam revamped much of its legal system, making revisions of major legal frameworks, specifically Enterprise and Investment Law, Labour Code, Land Law, Civil Code, Law on Securities, Law on Competition in order to make the investment environment more transparent. As a matter of fact, WTO accession with the challenges associating with MNC’s market entries has helped to revolve Vietnam’s legal environment to be more transparent and more conform to international standards in all aspects.