Vietnam: the opportunities and advantages of an increasingly attractive market

Growing GDP and FDI in the ASEAN market: What opportunities and advantages in Vietnam to do business?

ASEAN today represents of the most important areas globally in which to invest, and among the 10 member states that make up the Asian organization, the performance of the Vietnamese market stands out. In fact, the country has been experiencing high growth rates for several years now, which has attracted the interest of international investors: between 2000 and 2013, direct investments from U.S., European, Korean, Japanese, and Chinese multinationals amounting to more than US$200 billion flowed into Vietnam and To date, the inflow of FDI does not stop; in relation to Greenfield investment alone, Vietnam emerges as one of the leading markets not only in the ASEAN region, but in the entire Asian continent. Hanoi has thus been able to confirm its prominent position among the most dynamic global economies, thanks mainly to the increase in industrial and manufacturing production.

Relations between Italy and Vietnam are excellent: our exports within the country have been on a great growth path in the past two years, and given the good political relations there, all indications are that the trend is likely to increase in the future.

There are many points of contact between the Italian and Vietnamese markets, and many reasons why made-in-Italy companies should invest in Vietnam:

• an industrial fabric similar to Italy's, based on a large presence of SMEs;
• strong political and social stability;
• A young, low-cost and skilled workforce;
• The increasing development of a middle class with a high propensity to consume;
• a strong interest in Italian products (especially luxury, but not only);
• the very competitive costs; not surprisingly, Vietnam is also considered the Asian country with the most affordable costs in relation to import-export taxes and duties;
• a major policy of opening up to foreign capital, including incentives for foreign companies and more flexible regulations;
• the need for foreign investment, technology and know-how;
• a vast network of free trade agreements with countries in the area, containing very favorable safeguard clauses;
• increasing integration into the globalized world.

Several sectors offer business opportunities. These include:

• food;
• food processing;
• textiles;
• articles of clothing;
• furniture and furnishings;
• infrastructure and construction;
• machinery and equipment;
• sourcing.

Octagona, which has decades of experience on internationalization issues, is present not only in Vietnam (Hanoi and Ho Chi Minh City) through direct offices, but throughout the ASEAN region for many years already, being able to count on strategic partnerships in Singapore, Indonesia (Jakarta) and Thailand (Bangkok). Octagona is able to provide assistance to all companies that plan to sell their products in Vietnam or other ASEAN countries by developing specific projects and following customer requirements.

If you would like to learn more, please call us at 059.9770184 or email us at. [email protected]: you will meet with one of our consultants to build, together with you, the best internationalization path.

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