Why is Vietnam good for manufacturing?

The real benefit to manufacturing in Vietnam is the shipping advantage. The country has two international airports, several major ports, reliable power, and easy access to the internet and cellular networks. Since the country is small, most suppliers are located close to an airport or major port.

What are the risks of doing business in Vietnam?

Corruption remains an issue in Vietnam. Anyone doing business in the country is likely to encounter, or hear of, corruption in one form or another. Practices such as facilitation payments, bribes and giving and receiving expensive gifts in order to develop business relationships are still a problem in certain places.

Why is it cheaper to manufacture in Vietnam?

✔ Low Labor Cost in Vietnam Vietnam’s main advantage over China is the low cost of the labor force. While in major Chinese cities, the wages have surged, and manufacturers are struggling to stay profitable, the cost of labor in Vietnam can be as little as 1/3 of China’s.

Is it good to start business in Vietnam?

The tax rate for these companies can also be as low as 5\% depending on the business’ location. Other industries with tax exemptions include agriculture, healthcare, and manufacturing of high priority products. Let us help you with starting your small business in Vietnam.

Is Vietnam a good place to manufacture?

The secret has long been out: Vietnam is a great place for manufacturing. Vietnam combines many of the same benefits of manufacturing in China — a strong supply chain and industrial experience — with an eager-to-learn workforce and lower labor costs.

What business should I start in Vietnam?

Then, Vietnam National Law will introduce about top 10 business that smart investors can do in Vietnam.

• Furniture Making and Remodeling.
• Garment and Textile Products.
• Construction and building Materials.
• Detergents and cosmetics.
• Agricultural Products Processing.
• Exportation.
• Real Estate.
• Restaurant and Bar.

What is the best business in Vietnam?

1. Textile and Garment. Garment and textile items production is one of the most lucrative businesses in Vietnam. Foreigners or investors are likely to make a profitable gain out of this sector because it is considered one of the active sectors in its exported items.

Is Vietnam cheaper than China?

Neighbors China and Vietnam share a similar culture and history. But the smaller Vietnam is a little cheaper, and mostly warmer, than its larger northern neighbor. Large cities are generally higher in price than the countryside, but overall China is surprisingly affordable.

What are the pros and cons of moving to Vietnam?

To help expats in their decision-making process, here is a selection of pros and cons of moving to Vietnam. One of the biggest draw factors making Vietnam a popular expat destination is its low cost of living.

Why should manufacturers move from China to Vietnam?

In addition to its geographic proximity to China, Vietnam offers several advantages for manufacturers planning to move outside China. Vietnam is not without its share of challenges. In the short-term, manufacturers may find the production shift daunting as supply chains have to realign.

How to approach Vietnam as a company?

Organizing a visit. Companies should approach Vietnam with a clear understanding of the production that they intend to carry out in this market. For most companies, an alternative location is chosen because of their lower costs, which are well suited for basic manufacturing and assembly.

How big is the footwear export industry in Vietnam?

The footwear export industry alone is worth nearly $22B/year in Vietnam. Big tech is moving into Vietnam and balancing their production with China. Apple recently started producing AirPods in Vietnam to cut down on import costs from China.