How reliant is Vietnam on China?

In 2000, Vietnam imported US$600 million of capital goods from China, accounting for 42.85 percent of all imports from the latter. By 2014, that figure had climbed to US$20.19 billion, 33 times higher than in 2000 and accounting for 46.25 percent of Vietnam’s total imports from China.

What is the economic status of Vietnam in 2020?

In 2000, Vietnam was the 60th largest economy in the world and rose to 44th place by 2019. Projections estimate that Vietnam will be the 20th largest economy by the year 2050. Since 2000, GDP growth in Vietnam averaged 6.5\% every year. In 2020, Vietnam’s economy still shows growth at about 3\% despite the pandemic.

Why do companies move manufacturing from China to Vietnam?

With its low labor costs and a stable yet growing economy, Vietnam is a more cost-effective alternative to China. Many investors are looking into setting up manufacturing companies in Vietnam. Other investors, meanwhile, are moving manufacturing from China to Vietnam. Hire employees in Vietnam.

What incentives does the Vietnamese government offer to investors?

Investors can enjoy the above incentives by investing in preferred industries. The Vietnamese government also offers incentives to businesses set up in certain locations. Our consultants can advise you on how to make the most of the incentives offered to investors. Get in touch with Emerhub and we will help you set up your business in Vietnam.

How do trade agreements promote Vietnam’s economy?

These trade agreements also promote the country’s economic growth. Certain trade agreements, like those under the World Trade Organization, make it easier for foreign investors to set up businesses in Vietnam. Vietnam also offers tariff reductions through trade agreements, such as in the case of the Free Trade Agreement with the European Union.