Vietnam Fact Sheet

  • VietnamVietnam

About

Vietnam's young population – 70 per cent of its people are under 35 years of age – will be key to its economic growth in the coming years. The country has made great strides in economic progress and infrastructure, with over 45 million people lifted out of poverty between 2002 and 2018. Its geographic location and proximity to its Southeast Asian neighbours – and China – have made Vietnam a viable hub for investment, as evidenced by strong FDI inflows surpassing US$38 billion in 2019.

95.5 mil

95.5 mil

Population size

30.9 years

30.9 years

Median age

Hanoi

Hanoi

Capital

Vietnamese dong (VND)

Vietnamese dong (VND)

Currency unit

52.7%

52.7%

Internet penetration rate

125%

125%

Mobile penetration rate

Economy


US$2,955

2020 estimated
GDP per capita

2.7% | 7%

Real GDP growth projection

(Annual per cent change, 
2020 & 2021)


BB-

S&P global ratings

Labour


57.3 mil

Total labour force (2019)


95%

Literacy rate (2018)

US$10.60

Average daily wage for
manufacturing employee
(2016)

Key Sectors

  • Agriculture
  • Construction and infrastructure
  • Food services
  • Healthcare and medical services
  • Manufacturing
  • Mining and quarrying
  • Real estate
  • Technology and telecommunications
  • Transportation and storage
  • Wholesale and retail activities

Tax Profile


20%

Corporate tax


80

Number of DTAs


0%

Dividend withholding tax


5%

Interest withholding tax


25%

Capital gains tax


Regulated

FX control

Trade

Exports
US$258 bil
Imports
US$258 bil
  1. United States
  2. China
  3. Japan
  4. South Korea
  5. Hong Kong
  1. China
  2. South Korea
  3. Japan
  4. Thailand
  5. United States


Based on 2019 data

Others

Economic zones

Economic zones

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Government agencies and business chambers

Government agencies and business chambers

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Key government initiatives and incentives

Key government initiatives and incentives

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  • 326 State-Supported Industrial Parks
  • 17 Coastal Economic Zones
  • 3 Hi-Tech Parks

Over the years, the Vietnamese government has pursued strategies to join several free trade agreements such as the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam (EVFTA), in the hopes of attracting exporting companies to produce in Vietnam.

 

Corporate Tax Incentives

  • Incentives granted are based on regulated encouraged sectors, locations and size.
  • Preferential incentives vary from 10 per cent, 15 per cent, and 17 per cent and last for 10 years, 15 years or the whole investment period.

 

Large Manufacturing Projects Incentives

  • Investment capital of VND12,000 billion or more, disbursed within five years of being licensed and using technologies appraised in accordance with relevant laws.
  • Qualified projects will have four years of tax exemption and 50 per cent reduction in tax for the next nine years.

 

Import Tax Exemptions

  • Machinery, materials, specialised vehicles which are imported to create fixed assets in encouraged investment projects are eligible for import tax exemptions for the first five years from the start of production.

 

Land Rental Fee Exemptions

  • Exemptions from three years to the entire project life depending on the types of projects and whether they are operating in encouraged investment sectors.

 

 

Sources: UOB Global Economics & Markets Research, World Economic Outlook (October 2019 and April 2020), World Bank, UNESCO Institute of Statistics, Asian Development Bank, Ministry of Planning and Investment (MPI), Foreign Investment Agency (FIA), Deloitte

 

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.

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