Business in Vietnam: Vietnamese economy. Foreign trade. Investing

Summary

Viet Nam embarked on the Doi Moi (reform) policy in 1986. Since then, the country has seen dramatic changes, first and foremost in the economic thinking. The Vietnamese economy is well on the road to a multi-sector model operating according to market mechanism and state regulations.

The centrally-planned economy was replaced by the socialist-oriented market economy; national industrialization and modernization were initiated together with the policy of multilateralization and diversification of external economic relations, openness and international integration.

The political will of the Vietnamese Government is also reflected in the strategy for administrative reform in 2001-2010, which emphasizes the simplification of administrative procedures, amendment of laws and improvement of economic management. These changes will help establish a dynamic institution to meet the development requirements of the country in the new context. External economic relations have been expanded and the flow of foreign direct investment increased.

With a population of over 80 million people, Vietnam has been and might become an appealing market for companies focusing on domestic selling. In brief, in terms of “market entry”, Vietnam is considered to be less attractive than ASEAN 4 and China. This is illustrated by a relatively low total GDP and GDP per capita against those of ASEAN 4 and China. Vietnam’s GDP is only 3% of China, 24% of Thai Land, 29% of Indonesia, 38% of Malaysia and 42% of Philippines.

Export of goods and labour, tourism industry and remittances from overseas Vietnamese have been strongly promoted to generate increasing foreign earnings for Vietnam.

Vietnam has established diplomatic relations with 167 countries, and has signed multilateral and bilateral trade agreements with over 80 nations. The country has been granted MFN status by more than 70 countries and territories, including countries and regions with large capital resources, high technologies and vast markets, such as the United States, Japan, the EU and newly industrialized countries in East Asia. Vietnam started negotiations for WTO accession in 1995 and is expected to become a member of this organization by the end of 2006.

Sample:

Vietnam has bilateral trade agreements with: Argentina, Indonesia, Norway, Australia, Iraq, Philippines, Bangladesh, Italy, Saudi Arabia, Brazil, Japan, Singapore, Burkina Faso, Jordan, South Korea, Cambodia, Kuwait, Sweden, Canada, Laos, Switzerland, China, Latvia, Syria, Estonia, Lithuania, Taiwan, European Union, Malaysia, Thailand, France, Germany, Netherlands, United Kingdom (but only on double taxation), India, New Zealand, United States ratified)

Vietnam's economy is 49.8 percent free, according to our 2008 assessment, which makes it the world's 135th freest economy (Heritage). Its overall score is 0.4 percentage point better than last year, mainly reflecting an improvement in trade freedom. Vietnam is ranked 25th out of 30 countries in the Asia–Pacific region, and its overall score is lower than the regional average.

Saigon Port within the port system of the Vietnam Maritime sector is one the port having highest throughput and productivity in the country.

Vietnam Mobile Telecom Services Company – VMS, a state-owned company under Vietnam Posts and Telecommunications Corporation, was founded in April 16th 1993. VMS has become the first GSM 900/1800 mobile telephony services provider in the brand name MobiFone, marking the beginning momentum of the mobile telephony industry in Vietnam.

Zamil Steel Vietnam Co., Ltd. was established in 1997 to design, manufacture and supply top quality pre-engineered steel buildings for use as factory buildings, warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, sports halls, supermarkets, office buildings, car parking sheds, and virtually any one, two or three story buildings.

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