Vietnam Sees Low Infection Rate & is Recovering from Covid-19
During the Lunar New Year, the outbreak of coronavirus exploded in China, and with Vietnam sitting on its doorstep fear began to spread through the population.
A few months later the chaos has disappeared and some resemblance of normality has resumed. Vietnam has been one of the most successful countries in containing the virus due to their fast and stern response.
The Government implemented various measures to help cushion the economic blow and help businesses sail through the rough seas. With no local transmission cases for over a month now, Vietnam is ready to ignite its economic engine again.
Strong Foreign Direct Investment
Vietnam has seen increasing investment from foreign entities in recent years. Strong investment has thrust the nation into being one of the fastest-growing countries in the South-East Asia region.
Interest from companies in Vietnam has swelled in April and May. We can expect increased interest in the country as things start to improve globally. For many businesses now is the perfect time to expand their business and diversify supply chains.
With Japan, South Korea and Europe all heavily invested in Vietnam, many are predicting the country becoming a primary manufacturing hub. The potential of Vietnam to follow in China’s footsteps in powerful economic development has many enterprises excited about the future.
Source: CFO Innovation
Source: Statista, U.S. Census Bureau
The Promise of Strong Future Economic Growth
Asia is still a hotbed for GDP growth. Many countries within the continent have seen monumental changes in recent years, from relative poverty to transforming into strong middle-income nations. As growth continues and the population becomes wealthier, Asia will become easily the most important consumer market.
Nguyen Xuan Phuc, The President of Vietnam has set GDP growth for 2020 at 5%, despite the Covid-19 pandemic. If achieved, this would be an extraordinary feat as other countries around the world are currently being dragged into a recession.
Although the International Monetary Fund (IMF) only predicts a 2.7% increase to Vietnam’s GDP, this would still be superior to that of its regional peers. A strong 7% rebound is expected for 2021, firmly placing the nation back on track for continued economic success.
Implementing Reforms for a Business-Friendly Environment
Factories are shifting their location away from China, with Vietnam has been the prime location to diversify into. Multiple large corporations have already moved or are considering moving according to Savills.
Vietnam’s business environment is constantly reforming to increase attractiveness for companies. Expanding your footprint into Vietnam has now become important for growing corporations. Now is a great time to take advantage of the benefits the country can provide.
Overseas hiring for your expanding business can be a tedious procedure. Set up a local presence before establishing a legal entity through our Secondment service.
Links International also offers payroll services in Vietnam. Streamline and centralise all your HR functions from multiple countries, so you can focus on business growth!
If you are interested in learning more about the Vietnamese market, insights and the local labour law, email us at frontdesk@linksinternational.com.
3 Key Takeaways
Growing Emphasis on Vietnam
Foreign Direct Investment (FDI) has been increasing in Vietnam. With manufacturing shifting to the country and other nations recognizing its potential, there is an excitement building around the country!
Economic Resilience
Countries around the world have been pulled into a recession by the Covid-19 pandemic, but Vietnam is still expecting positive growth in 2020. The strong resilience in the economy has many predicting long-term sustained growth.
Expand Your Business Footprint
Vietnam has been a premier location for corporations looking to grow their business globally. Expand your footprint with help from Link’s local expertise and insights. Learn more about how our secondment and payroll services can help you develop your business in Vietnam. Contact us at frontdesk@linksinternational.com for more information.
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- Asia-Pacific Nation’s Policy Updates Affecting Returning to Work
Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.
