Ho Chi Minh City is
considered as Vietnam’s economic hub. During the long history of foundation and
development, the city’s economy is growing constantly and motivating the
development of the country.
The city is therefore
considered as a potential investment environment for domestic investors as well
as foreign investors. The investment through establishing companies andconducting
business activities in Ho Chi Minh city certainly promises to
achieve multiple benefits. These benefits come from the following reasons.
First, Ho Chi Minh City
has strategic location advantage in Vietnam. Southeast Asia Region, Ho Chi Minh
City is 1,700 km south of Hanoi, 297 km east of Phnom Penh, Cambodia, 881 km
east of Bangkok, Thailand.
Food, glass, textiles,
paper products, plastics, chemicals, building materials and machinery are
produced here. Ho Chi Minh City accounts for 20% of total gross domestic
product (GDP), 30% of industrial production and 40% of export products of
Vietnam. The city also accounts for 33% of the national budget and 60% of
foreign investment flows into the region. In the past few years, the economy
have been grown at a rate greater than 10% (6% to 8% nationally).
Second, Ho Chi Minh City
is home of well – qualified, abundant and young human resources.
With a population of
more than 8 million, accounting for more than 10% of the total Vietnamese
population, Ho Chi Minh City itself has potential employment market to make any business
investment. The work force in Ho Chi Minh City was estimated to
reach 4.7 million people in 2012, making up more than 50% of the total
population of the city. The percentage of trained labor increased from 40% in
2005 to 55% in 2010 and was forecast to reach 70% in 2015. The percentage of
labor source holding postgraduate degree is also increasing year by year and
most of them tend to stay in the city after holding degrees. Ho Chi Minh City
is also home to more than 80 universities and colleges, vocational schools with
over 400,000 students providing an abundant trained work force.
With the above –
mentioned abundant labor force, any companies
set up in Ho Chi Minh City can easily recruit suitable
employees in a short time..
Third, the city has
modern and high infrastructure system. Namely, when setting up company in HoChi Minh City,
the owners will benefit from the modern and comprehensive infrastructure
system.
Tan Son Nhat Airport is
the largest airport in the country with the capacity to accommodate 20 million
people a year. From Tan Son Nhat Airport, there are 50 routes to other
countries all over the world such as China, Japan, Korea, Singapore, European
countries, etc.
Saigon Port serves as a
gateway to the Mekong River Delta, the South China Sea (83 km away from the
sea) and the Asia continent. The port has a total area of 500,000 m2 with
5 terminals meeting the international standards, and it handles about 8.3
million tons of cargo annually. Throughout the history of foundation and
development of Saigon, Saigon Port plays an important role in making Ho Chi
Minh City a flourishing trading center. It accounts for a fifth of the nation’s
Gross Domestic Product and almost a third of its industrial production.
Ho Chi Minh City is also
home to industrial zones. According to the statistics of Cushman &
Wakefield, the city has 18 industrial parks that are operating with a total
area of 3635 ha. When investing in such industrial zones in Vietnam,
enterprises can benefit from various incentive policies such as low rate tax or
other incentive policies.
Telecommunication and
information technology in the city is modern. The system of post and
telecommunication in Ho Chi Minh meets international standard, providing fast,
reliable and high quality services such as ADSL, rapid data transfer, wide
broadband MAN. The Internet service in Ho Chi Minh city is also among the
cheapest in the world.
Besides, the city is
also considered the best working conditions. Enterprise will not be fear that
it is not enough place for working. The city with the system of offices provide
ideal working environment for all investors.
ANT Consulting is here
to assist you from the outset; providing corporate intelligence, risk advisory,
management consulting services that assist market entrance, and ensure
efficient business start-up operation. Our services are as following:
We strive to save your
cost by guiding you towards economical solutions that comply with local
legislation and procedures. We support you through early logistic solutions and
carry you through as your business grows.
We aim to bridge the gap between international best practices and local
cultures and assist foreign companies and organizations entering Vietnam market
to overcome commercial and regulatory issues.
We could be reached at
email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit
www.antconsult.vn
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