The strengths of ASEAN and Vietnam in attracting foreign investment
The Nations from ASEAN including Vietnam are being considered as an attractive destination for foreign investors thanks to the advantage of geographical position, market size and impressive GDP growth.
After more than 50 years (1967 – 2018) of development, ASEAN has become a large market with a population of 634 million people. It is currently ranked as the sixth-largest economy in the world with a combined GDP of $ 2,600 billion. Over the last 50 years, the world has witnessed a continuous increase in the merchandise trade of ASEAN countries, from $ 10 billion to $ 2.219 billion. Services, manufacturing industry, energy and agriculture are attractive areas for foreign investors.
FDI in ASEAN mostly comes from the European Union (EU), Japan, China, South Korea and the United States. Notably, over 90 multinational ASEAN corporations are in the list of 100 major global corporations. Many of the 500 largest companies in the world are continuing to expand their manufacturing operations in the ASEAN region such as Nestle (Switzerland), Osram Opto (Germany), Honda (Japan), Apple (USA) and Samsung (Korea).
Vietnam officially joined ASEAN in 1995. Since then, the total import-export turnover between Vietnam and other countries in the bloc has increased from $ 6 billion in 1996 to over $ 45 billion in 2017. Vietnam is considered to have a comparative advantage in attracting investment compared to other countries in the region as it has a stable economy and politic conditions with low competitive tax rates. In addition, the Vietnamese Government always focuses on reforming administrative procedures to create favorable conditions for both domestic and foreign enterprises to invest and operate in Vietnam.
The presence of Access Vietnam with global experiences and local market knowledge also help investors to be confident in their investment decisions and operations in Vietnam. Access Vietnam is willing to assist foreign investors to comply with the requirements and regulations of Vietnam to make the most of the benefits offered by the Government.