Doing Business in Viet Nam

A reference guide to entering the Viet Nam market

Viet Nam  - Striding towards a brighter economic future

Welcome to the 12th edition of the Doing Business in Viet Nam guide, your annual guide through the nation’s economic landscape, co-authored by PwC Vietnam and Vietnam Chamber of Commerce and Industry (VCCI). As we step into 2024, Viet Nam’s resolve to carve a sustainable economic path is unwavering.

In the face of global uncertainties sparked by global conflicts and supply chain disruptions, Viet Nam is in a prime position to strengthen its economy, amplify manufacturing, and expedite digital transformation. This commitment echoes the country’s vision of reaching developed economy status by 2045, and achieving Net Zero carbon by 2050.  Backed by robust policies and ongoing reforms, the government has been proactive with its support, backing businesses, attracting investment, and spearheading a greener, digitally advanced economy.  Viet Nam’s journey towards resilience and competitiveness is built on raising skills levels and fostering a culture of continuous learning. By empowering its workforce through targeted training, robust reskilling initiatives, and embracing technological advances, Viet Nam can not only modernise its industries, but also propel itself towards heightened productivity and innovation in a rapidly evolving digital landscape.

This journey has seen Viet Nam going from one of the world’s poorest nations to a lower-middle-income developing country in 2010 and after years of successive and robust growth, Viet Nam is on the cusp of becoming an upper- middle-income country. Overcoming past uncertainties and disruptions, Viet Nam’s resilience stands as a testament to its unwavering spirit, a powerful engine hurtling towards the future. At the final stop on this transformative journey, Viet Nam should emerge as a developed, high-income country in 2045. With numerous opportunities ahead, we welcome you to board this ride with us. 

 

Pham Tan Cong
Chairman & President
Viet Nam Chamber Commerce & Industry

 

Dinh Thi Quynh Van
Chairwoman
PwC Viet Nam

Doing business 2022

Resilient economic growth and attractive market potential

In 2023, Viet Nam faced global economic uncertainty, resulting in a decline in GDP growth. However, Vietnam's GDP growth still exceeded the global average and that of the Asia Pacific region due to strong fundamentals and government efforts to stabilize the economy. The unemployment rate remained low, and inflation was controlled.

In 2024, Vietnam's economy is expected to rebound, supported by ongoing improvements in the business environment and competitiveness. Viet Nam offers a sizable market with a growing middle class, creating attractive investment opportunities in consumer markets and various sectors such as education, healthcare, and leisure. These sectors have been instrumental in driving Vietnam's economic growth.

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Why invest in Viet Nam?

Growing integration into global value chains (GVCs)

  • Viet Nam is actively integrating into global value chains (GVCs) through participation in free trade agreements (FTAs), benefiting domestic exporters and foreign investors. The country's strategic location in the Asia-Pacific region allows investors to exploit supply and procurement advantages and access export markets through friendly FTAs.

  • Despite challenges like scarcity in technical fields and infrastructure development, Viet Nam remains a cost-competitive destination for investors, with a growing consumer class and positive economic outcomes.

  • Viet Nam is firmly on the path of global economic integration, with a total of 16 FTAs already signed. The country has established 18 Strategic Partnerships with countries worldwide, with six of them (China, US, Russia, South Korea, Japan, India) being Comprehensive Strategic Partnerships. It positions Viet Nam as a valuable player in the global supply chain and offering increased investment opportunities.

Embracing high-value growth and sustainable development

  • Viet Nam is firmly committed to achieving high-value growth and sustainable development, driven by the recognition of climate change as a significant threat to the country's economy and progress.

  • The government has set long-term goals of becoming a high-income country and achieving net-zero emissions by 2050, accompanied by national strategies and policies to foster green investment.

  • Viet Nam is actively collaborating with international organisations and focusing on technological innovation, renewable energy, and eco-friendly infrastructure projects, making it an appealing destination for foreign investors seeking to make a positive impact while achieving returns.

  • Viet Nam has shown significant potential in green financing opportunities, outperforming its GDP on PwC's Green Infrastructure Finance Propensity Index. The country has dynamic markets for local and overseas investors, with government reforms opening up opportunities for large-scale solar and wind projects. Vietnam's Eighth National Power Development Plan emphasizes strategic investments in renewable energy, requiring an estimated investment of nearly $700 billion USD. 

  • Additionally, Vietnam's digital economy is projected to grow, with opportunities in e-commerce, digital payments, and emerging technologies like AI and blockchain. The country is attracting foreign investment in the high-tech industry and supporting R&D efforts, positioning itself as a rising player in the global tech landscape and supply chains.

Improving legal framework to support the business environment

In 2023, Viet Nam has passed a series of laws/amended laws that will improve and clarify market conditions for investors and businesses as well as help in pursuing the development of new and greener economy, including:

  • Housing Law: Clarifying regulation on land use, housing safety and allocation and incentives for development of social housing.
  • Real Estate Business Law: Clarifying and simplifying regulation on real estate transactions, including on public disclosure, capital requirements and foreign investments.
  • Water Resources Law: Developing a clear regulatory framework for management of water resources and ensuring clean and safe water supply.
  • Prices Law: Updating regulations regarding price declaration for certain goods/services and criteria of goods/ services prices of which are determined by the State.
  • E-Transactions Law: Updating the legal framework for digital transaction to promote the development of Viet Nam's digital economy.
  • Bidding Law: Creating a complete and consistent legal framework on bidding, procurement and use of State capital. 
  • Telecommunications Law: Developing the regulatory framework to align with the new development of telecom infrastructure serving digital transformation
  • Personal Data Protection Decree: Providing guidelines on personal data protection of Vietnamese citizens in Viet Nam.


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Get in touch

Mai Viet Hung Tran

General Director, PwC Vietnam

Tel: +84 28 3823 0796

Dinh Thi Quynh Van

Chairwoman, PwC Vietnam

Tel: +84 24 3946 2246

Nguyen Phi Lan

Partner, Assurance Services Leader, PwC Vietnam

Tel: +84 24 3946 2246

Nguyen Thanh Trung

Partner, Tax and Legal Services Leader, PwC Vietnam

Tel: +84 28 3823 0796

Johnathan Ooi Siew Loke

Partner, Deals and Consulting Services Leader, PwC Vietnam

Tel: +84 28 3823 0796

Phan Thi Thuy Duong

Partner, Legal Services, PwC Vietnam

Tel: +84 283 823 0796

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