Supply chain shifts to Vietnam are gathering momentum, helped by China’s rising labor costs and other factors such as the ongoing US-China trade war. Businesses with production facilities in China are looking at Vietnam when searching for an alternate manufacturing destination. Navigating Asia’s geopolitical landscape is difficult for most foreign firms. This is more so when they have […]
Driven by the growth in exports, domestic demand, foreign investment, and the manufacturing sector, Vietnam’s GDP grew by 7.08 percent in 2018, the fastest in the last decade. For 2019, the government has set a softer GDP target of 6.8 percent, which is achievable as domestic demand and foreign investments are predicted to continue their growth momentum […]
Last year, Vietnam and the EU signed the Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance, and Trade (FLEGT). The agreement focuses on improving forest governance, reducing illegal logging, and promoting trade in verified legal timber from Vietnam to the EU. Once ratified by both parties, the VPA will further boost timber exports to […]
Investors in Vietnam are often surprised to learn that their biggest hiring challenge comes during the selection process for mid-level management. Mid-level managers in Vietnam play a crucial role in functions such as staffing, dispute resolution, and employee retention. Foreign companies are often ill-equipped to manage these challenges on their own and can find the […]
Vietnam’s National Wage Council has increased the minimum wage by an average of 5.3 percent in 2019. The hike, which is the lowest compared to previous years, will increase the minimum wage in the four regions by US$7-9 per month. In 2018, the increase was 6.5 percent, while in 2017 the minimum wage was hiked by […]
In 2018, the Vietnamese government passed several new and amended laws which are going to come into effect in 2019. The laws primarily focus on wages, environmental projects, food industry, rural development, cybersecurity, and administrative procedures. This is an exerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For […]
Driven by the domestic market’s growing purchasing power, the total revenue generated from retail sales and consumer services in Vietnam in 2018 reached VND 4,396 trillion (US$191 billion), up 11.7 percent compared to 2017. The wholesale and retail sector continues to be a major attractor of foreign direct investment (FDI), with total registered capital in 2018 reaching US$3.37 […]
The mental healthcare industry in Vietnam is still developing. The government has established the National Mental Health Programme (NMHP); however, industry observers have noted that the NMHP only covers approximately 30 percent of the country, and uses a very narrow list of mental illness. While the government estimates that approximately 15 percent of the population […]
Vietnam’s wood and wood products exports reached a record high in the first 11 months of 2018 to US$7.22 billion, up 15.63 percent compared to the same period last year. In the last decade, the country’s wood processing industry has grown 2.7 times, making Vietnam the world’s fifth largest wood exporter with a market share […]
Vietnamese Prime Minister, Nguyen Xuan Phuc, has announced plans to reduce Vietnam’s corporate income tax (CIT) in a recent speech. Phuc’s announcement, made at the GMS Business Summit in late March, remains limited in detail but is widely expected to follow draft legislation issued by Vietnam’s Ministry of Finance (MoF) in August of 2017. Proposed CIT reductions […]
In June 2018, Vietnam passed a new Competition Law, replacing the 2004 version of the law. The new law which focuses on competition restraining agreements, market dominance, economic concentration, and unfair practices, will be in effect from 1 July 2019. Scope of the law The new Competition Law has expanded its scope and now includes […]
Vietnam’s internet economy in 2018 is expected to reach US$9 billion in gross merchandise value (GMV), accounting for around four percent of the GDP, according to a recent study by Google and Temasek Holdings on Southeast Asia. Internet economy in Vietnam which covers, online travel, e-commerce, online media, and ride-hailing, grew at a compound annual growth rate […]