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The benefits of Vietnam

Vietnam is a country with many opportunities. E. g. there can be money to be gained for companies with production needs. The salary level is considerably lower in Vietnam than in Europe, as is the case for many Asian countries.

So why Vietnam? In the article here, you can read some of the reasons why Vietnam is worth considering.

Be free from the uncertain conditions in China

Many companies that today have production in China are looking to other countries.

They do, among other things, due to the large discrepancies between value sets and political orientation between China and the West. Much like our relationship with Russia, which has caused major problems for companies, the uncertain relationship with China can lead to major losses.

In order to be ahead of possible sanctions that could cost companies a lot of money, they move their production to other countries, including Vietnam.

No customs duty

On 1 August 2020, the free trade agreement between Vietnam and the EU entered into force. This means that you can now import many goods without paying customs duty.

When the agreement entered into force, it affected 71% of all Vietnam’s exports. After seven years, i.e. in 2027, it will be as much as 99%

So it shouldn’t be high customs fees that hold you back from going to Vietnam.

Improved conditions for trade

Generally speaking, the conditions for trading in Vietnam are getting better. The Vietnamese government is working to improve business opportunities in the country. Whether it is in the form of a higher level of English among the population, better conditions for production and factory companies or the said free trade agreement.

In time, Vietnam will become an even more attractive country for outsourcing. So why not move now?

What do you get out of outsourcing to Vietnam?

Now you have read a little about the advantages of outsourcing to Vietnam. Among the benefits are:

  • Less uncertainty – If you have production in China, it pays to do like many companies and search for other countries.
  • No customs duties – Avoid too many import costs.
  • Good future prospects – Vietnam has high ambitions that can benefit you.

Do you want to read more about Vietnam? Read the article here about the cultural differences and how you have to deal with them to get a successful production going.