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Demographics
Vietnam has a population of more than 95 million people, with 62% of the population is young adults of an average of 30 years of age. The percentage of these productive adults is the highest among ASEAN countries. The majority of the golden population reside in big cities, such as Hanoi and Ho Chi Minh City, with significant exposure to information and technology.
The strong economy and low labour costs
With the current GDP growth of around 6.8%, Vietnam is considered one of the countries in ASEAN that show the strongest economic performances. This growth rate is expected to remain until 2020, thanks to major contributors that include the service and industrial sectors.
The country is also known for its low labour costs. Compared to many regions or countries around the globe, the average salary of the workforce in Vietnam is much lower. In big cities such as Hanoi and Ho Chi Minh City, the minimum salary is VND 4,180,000 (USD 180). In rural areas, salary can be as low as VND 2,920,000 (USD 126) per month.
Other than strong economic growth, surging young population, and low labour costs, the government has shown efforts to support both local and foreign investments, so that the country can become investment heaven for all investors. Among the efforts, Vietnam is a member of the WTO, ASEAN and signed the EU-Vietnam Free Trade Agreement and EU-Vietnam Investment Protection Agreement, and the new Trans-Pacific Partnership.
The government also offers tax incentives that come in two types for legal companies and organisations in Vietnam, namely tax holidays and preferential tax rates. Large manufacturing companies and high-tech companies are entitled to 4 years of tax holidays, followed by 9 years of 5% corporate income tax. Furthermore, businesses whose locations fall within the economically disadvantaged category are granted 2-4 years of tax exemption and 4-9 years of 7.5%-10% corporate income tax, whereas businesses in extremely economically disadvantaged locations can enjoy 4 years of tax exemption and 9 years of 5% corporate income tax.