As a company based in Vietnam, we have witnessed firsthand the advantages of sourcing from this dynamic and rapidly developing country. In this blog post, we will share key figures and references that highlight why Vietnam is the best place for procurement.
Robust Economic Growth: Vietnam's economy has been growing at an impressive rate of 6-7% per annum over the last decade. According to the Reuters, Vietnam's GDP grew by 8.02% in 2022, making it one of the fastest-growing economies in the world.
Stable Political Environment: Vietnam has a stable political environment and a government that is committed to economic reform and attracting foreign investment. This provides businesses with a conducive environment for long-term investment.
Strategic Location: Vietnam is strategically located in the heart of Southeast Asia, providing easy access to other major markets in the region. With a population of over 97 million people, Vietnam is also a large consumer market in its own right.
Competitive Labor Costs: Vietnam offers competitive labor costs, making it an attractive destination for businesses looking to reduce their manufacturing costs. The minimum wage in Vietnam is among the lowest in the region, with an average monthly salary of around $200.
Strong Manufacturing Base: Vietnam has a strong manufacturing base, particularly in electronics, textiles, and footwear. According to the General Statistics Office of Vietnam, the country's industrial production index increased by 6.2% in 2020, despite the COVID-19 pandemic.
Free Trade Agreements: Vietnam has signed several free trade agreements (FTAs) with major trading partners such as the EU, Japan, and South Korea. These FTAs provide businesses with preferential access to these markets and help to reduce tariffs and other trade barriers.
Skilled Workforce: Vietnam has a young and well-educated workforce, with a literacy rate of over 95%. The country also has a large number of engineering and technical graduates, making it an attractive destination for high-tech manufacturing.
Improving Infrastructure: Vietnam is investing heavily in its infrastructure, with a particular focus on improving its transportation network. The country has built several new airports and seaports, and is currently constructing a high-speed railway line that will link the north and south of the country.
Crackdown on Corruption: Vietnam has made significant progress in reducing corruption in recent years. The country ranked 94th out of 180 countries in the Transparency International Corruption Perceptions Index 2020, an improvement from its previous ranking of 113th in 2018.
Vietnam offers a range of compelling advantages for businesses looking to source goods or services. With its robust economic growth, stable political environment, competitive labor costs, strong manufacturing base, and improving infrastructure, Vietnam is an ideal destination for procurement. Additionally, the country's free trade agreements, skilled workforce, strategic location, and low corruption make it an attractive option for businesses looking to expand their global reach.
