Vietnam is one of the world’s fastest growing economies, and in January 2017 Ho Chi Minh City was named as the world’s second most dynamic city.* This means more and more international companies will come to Vietnam to do business, and this, in turn, leads to increased job opportunities and boosts the importance of HCMC as a major economic centre.
Vietnam’s population and economy are on the rise. There is a vibrant jobs market and a labour force that is expanding by more than one million people every year.** The population continues to benefit from the strong economic development since “Đổi Mới”, the name given to the economic reforms initiated in 1986, and Vietnam is recognised internationally for investment and growth.
In recent years, Vietnam has enhanced its global economic reputation and entrenched its role as one of the most exemplary offshoring locations in the world. HCMC is the main centre for offshoring in the country with almost double the amount of companies taking advantage of its ideal position in comparison with its northern city, Hanoi.
What is the reason behind this phenomenal development and how do multinational corporations make good use of these factors?
Vietnam is a networked country and is ranked 16th in the world for Internet use. Free wi-fi is available just about everywhere in HCMC. Telecommunications and information technology in the city is very advanced - providing fast, reliable and high-quality services such as ADSL, rapid data transfer, and wide broadband metropolitan area network (MAN). The Internet service in HCMC is also among the cheapest in the world.
Vietnam is situated right in the middle of the Asia-Pacific regions’ economic bloc and HCMC has strategic location advantages. HCMC’s Tan Son Nhat Airport International is the largest airport in the country. Tan Son Nhat has the capacity to accommodate over 20 million people a year and plans to expand in the near future. It has over 50 routes to other countries from all parts of the world including; China, Japan, Korea, Singapore, Australia and various European countries.\n Saigon Port serves as a gateway to the Mekong River Delta and the South China Sea and the Asian continent. The port has a total area of 500,000 m2 with five terminals handling about 8.3 million tons of cargo annually. Throughout the history of foundation and development of Saigon, Saigon Port has played an important role in making Ho Chi Minh City a thriving trading centre. The port accounts for a fifth of the nation’s Gross Domestic Product and almost a third of its industrial production.
Establishing an offshore team in Vietnam indicates your company will be able to capitalise on the exponential growth of the region and not miss the opportunities provided by its phenomenal global development. HCMC is also home to more than 80 universities and colleges, vocational schools with over 400,000 students providing an abundant skilled work force, making it easy for companies set up in HCMC and easily recruit suitable employees in a short time.
*JLL City Momentum Index 2017
**Ref: CIA World Factbook, 2017
*** World Bank, April 2017
