Vietnam: the opportunities and advantages of an increasingly attractive market

ASEAN markets see growth in GDP and FDI: What opportunities and advantages does Vietnam offer for doing business?

ASEAN today represents one of the most important global areas for investment, and among the 10 member states of the Asian organization, the Vietnamese market's performance stands out. The country has recorded high growth rates for several years now, which have attracted the interest of international investors: between 2000 and 2013, direct investments from US, European, Korean, Japanese, and Chinese multinational corporations totaling over 200 billion USD flowed into Vietnam. ad oggi l’afflusso di IDE non si arresta;With regard to Greenfield investments alone, Vietnam is one of the main markets not only in the ASEAN region but in all of Asia. Hanoi has thus succeeded in confirming its prominent position among the most dynamic global economies, mainly due to the increase in industrial and manufacturing production.

Relations between Italy and Vietnam are excellent: our exports to the country have shown great growth over the past two years, and considering the good political relations between them, everything suggests that this trend is destined 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 ever-increasing development of a middle class with a high propensity to consume;
• a strong interest in Italian products (especially luxury, but not only);
• very competitive costs; it's no coincidence that Vietnam is considered the Asian country with the most affordable costs, also in relation to import-export taxes and duties;
• a significant policy of openness to foreign capital, which includes 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 region, containing very favorable safeguard clauses;
• increasing integration into the globalized world.

Several sectors offer business opportunities. Among these, we highlight:

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

Octagona, with a decade of experience in internationalization, has a presence not only in Vietnam (Hanoi and Ho Chi Minh City) through its own offices but also throughout the ASEAN region for many years, relying on strategic partnerships in Singapore, Indonesia (Jakarta), and Thailand (Bangkok). Octagona can provide assistance to all companies that intend to sell their products in Vietnam or other ASEAN countries, developing specific projects and following client requests.

If you want to know more, call us at 059.9770184 or send an email to [email protected]: you will meet with one of our consultants to build, together with you, the best internationalization path.

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