The Tribune de Gèneve, a Swiss daily newspaper, has recently published an article highlighting Vietnam’s emergence as a new destination for foreign businesses.
The article, citing a correspondent from the Vietnam News Agency in Geneva, notes that Vietnam has experienced the strongest economic growth in Asia in 2022 following the COVID-19 pandemic’s closure.
Switzerland is well-positioned to benefit from the advantages offered by Vietnam’s growing economy, according to the article. Trade between Switzerland and Vietnam surpassed 3 billion francs (around 3.2 billion USD) in 2020, resulting in the creation of 20,000 jobs. Hundreds of Swiss firms are already established in Vietnam, making Switzerland one of the most significant European investors in the country. The article further emphasizes that the Swiss industrial equipment sector could benefit from the increasing trend of “Made in Vietnam” goods.
The article highlights that the industrial boom in Vietnam is apparent upon entering the Van Trung industrial zone, located about an hour’s drive north of Hanoi. The Foxconn recruitment office, Apple’s well-known subcontractor, has long lines of people waiting early in the morning. Meanwhile, LuxShare, Foxconn’s competitor, is recruiting 13,000 new employees, and a solar panel manufacturer is announcing 6,000 job openings. A nearby auto supplier is also hiring 700 qualified individuals.
The article also notes that large industrial parks are being built to accommodate advanced electronics manufacturers. Samsung Electronics, for example, inaugurated a new research and development center in Hanoi in December 2022, with plans to invest around $3.2 billion in producing semiconductors at a nearby facility. Amkor Technology, a leading American semiconductor firm, will also open a factory close to the airport. Additionally, Pegatron, which produces components for Tesla and assembles iPhones, recently began operations near Ha Long Bay.
Vietnam’s stable investment environment and 15 free trade agreements, including one signed with the European Union (EU) in 2020, have made it an affordable industrial production hub. As a result, the article concludes that foreign investors are increasingly considering Vietnam as a top investment priority, and the country is expected to see more large factories opening in the future.
How Foreign Companies Can Start a Business in Vietnam?
A foreign company can begin to establish a business in Vietnam by incorporating/ registering or by establishing a limited liability company, a joint stock company, a branch office or a representative office in accordance with the Law on enterprise of Vietnam.