„Vietnam is the most attractive location in South East Asia. I am able to find German virtues which I can’t find at home anymore. Vietnamese coworkers are goal oriented above average; they are punctual, and most important of all very eager for knowledge. They are a dream for employers." – Thomas Rapp, General Director Mercedes- Benz Vietnam

What is it about the business location Vietnam?
We’ll summarize the main points for you.

1. High political stability and reliable security
Vietnam is a very peaceful and safe country. It has one of Asia’s highest security standard and greatest political stability. Investors are not threatened by ethnic or religious conflicts and the danger of terrorism is not high. The cities are known to be one of the safest in the world, regarding the number of crimes.

2. High working quality and consequently high product quality
Vietnams working force applies to have a big urge to learn new things, with great apprehension and a high working moral. The population of acquisition is very young and every year more than 1 Mio. Graduates are entering the job market.

3. Cheap labor and high productivity
The costs of labor in Vietnam are very moderate (Unskilled workers 84-100 USD/month, skilled workers 135-165 USD/month, lower management 390-480 USD/month, Technicians 200-250 USD/month).

4. Solid Economical growth, increasing Investments and a developing local economy
The Vietnamese economy has been growing for a few years by about 6-8%, while the industrial production increased by more than 10%. The World Bank and ADB prognosticated a continuing growth in the upcoming years. Since 2000 they were about 20- 30,000 new founded businesses every year.

5. Great and fast growing population and a rising middle class with increasing consumption
Because 80 Mio. People (2020: 100 Mio.) are living in Vietnam; the country has become a great sales market. The population’s income is increasing, because of the economical growth. Especially the middle class in the bigger cities is developing a higher purchasing power. The average GNP per capita is about 1,400 USD in Ho-Chi-Minh City and is growing by more than 10%. Altogether Vietnam’s demand for making- up the missing consumption of the last years is high. ADB and the World Bank expect a locally increasing demand by about 10% in the next years. The poverty has been reduced by about 50% percent in the last decade, regarding international standards.
6. Strategically good location, diversification of the risk factor country
Vietnam is located within one of the world’s fastest growing economical regions. The economical markets with more than 3 Billion people are accessible within a few hours by plane. The country has good air connections to the regional centers of commerce, there are 7 international harbors along the 3,440 km long coast shore, and the streets are being rebuilt and improved, such as the land transportation to Thailand. Vietnam’s integration into the World economy is strongly developing; it is a member of ASEAN/AFTA and WTO. 2001 a bilateral trade agreement with the USA has been passed. Vietnam has existing double taxation treaties, investment protection contracts, and capital asset guaranties, as well as a Hermes country rear with Germany. Vietnam’s location encourages investors other countries within the region to engage in Vietnam for diversifying the country risk.

7. Stable macro- economical location
Vietnam is known to be macro- economically stable. Despite the great challenges the country has to face, the economic growth is continuous. The main indicators are factors, such as moderate inflation, stable exchange rates, adequate balance of payments, moderate national debts, as well as enough currency reserves.

8. Germany is Vietnam’s biggest European trading partner
The Federal Republic of Germany is one of Vietnam’s most important trading partners in Europe. Vietnam’s most important export goods to Germany are textiles, shoes, coffee, and fishery products. The main import goods from Germany are machines, chemicals, and pharmaceutical products.

9. Vietnamese people have a friendly attitude towards Germany
A lot of Vietnamese people received some kind of education in Germany. About 10,000 Vietnamese attended a university in Germany and lots of them are now important office holders in economy and politics and have access to vast networks. Even the former German Democratic Republic (GDR) hosted about 80,000 Vietnamese guest workers. About 120,000 people in Vietnam speak German.

10. First- Mover- advantages being realized and strong awareness towards brands
A lot of Vietnam’s sales markets are still very young and need to be occupied. The Vietnamese population also has a strong awareness towards brands and German products have a positive reputation. First- Mover- advantages and the development of brand names can be realized easily.