A view of central Đà Nẵng city. — VNA/VNS Photo

HÀ NỘI — An article published on US-based Entrepreneur.com on April 1 highlighted that an increasing number of international companies are choosing Việt Nam as a key destination in their global growth strategies, amid a growing trend of supply chain diversification aimed at reducing risks from trade and economic uncertainties.

Việt Nam is highly regarded for maintaining economic momentum, recording GDP growth of 8.02 per cent in 2025, alongside robust foreign direct investment (FDI) inflows with cumulative registered capital exceeding US$322 billion. Its large population and a young, skilled workforce position the country as both a promising consumer market and an efficient manufacturing base. Competitive labour costs also continue to help businesses optimise expenses, particularly in labour-intensive industries.

Participation in multiple free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU–Vietnam Free Trade Agreement (EVFTA), facilitates exports and deeper integration into global value chains, reinforcing Vietnam’s role as a manufacturing and export gateway. The investment climate and business establishment procedures have also become more flexible, while major economic hubs such as Hà Nội and HCM City offer relatively strong infrastructure and international connectivity, enabling firms to integrate into regional networks.

However, the article also noted several challenges. Administrative procedures remain multi-layered, covering investment registration certificates, business registration, tax, and invoicing requirements, with documentation largely conducted in Vietnamese. Certain sectors require additional licences, and company leaders may need to be physically present for some procedures, increasing market entry costs and timelines. Initial operations also involve completing procedures related to capital contribution, taxation, e-invoices and labour insurance, with processing times varying by sector.

Overall, the article assessed Việt Nam’s appeal as stemming from a rare combination of low cost, high growth, deep integration and an open investment environment. Nonetheless, administrative barriers and compliance requirements remain factors to consider, making Việt Nam particularly suitable for companies pursuing long-term expansion strategies and prepared to navigate regulatory procedures. — VNA/VNS