WHY VIETNAM?

Vietnam is becoming increasingly attractive and emerging as a serious alternative to other traditional sourcing hubs. There are a number of key advantages that make Vietnam stand out from the rest of Asia when the movement out of China is significantly happening, driven by both geopolitical and economic factors:

- Stable political environment and strong commitment of government to country's growth.

- Vietnam has competitive operating costs compared to other Asian countries.

- Workforce: young, high literate, willing to learn. Vietnam’s workforce grew to 52.4 million people in 2023 and the country is currently working to promote greater investment in training local workers.

- Better in protecting intellectual property (IP - patents, trademark, etc.).

- Strong work ethic and high commitment to quality.

- Working conditions and social welfares are judged to better than other cheap-labor countries (India, Bangladesh, Myanmar, Cambodia…).

- Easy to access to deep seaports.

- Available small to large production runs.

- Favorable trade polices: Vietnam has participated in many free trade agreements, bilaterial and multilateral. AFTA with ASEAN, ACFTA with Asian-China, AKFTA with Asian-Korea, AJCEP with Asian-Japan, VJEPA with Japan, AANZFTA with ASEAN-Australia and New Zealand, CVFTA with Chile, VKFTA with South Korea, VEAEU - Eurasian Economic Union, AHKFTA with Hongkong, UKVFTA with UK, EVFTA with EU, BTA with US, a member of WTO, RCEPT (Regional Comprehensive Economic Partnership), and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific).

- More factories have migrated out of China and into Vietnam recently, and the tendency is forecasted to be continuously increased.