A Favorable Investment Climate

Reasons for Investing in HoChiMinh City.

1. Booming Economy: 2. Booming Private sector 3. People are thriving as opportunities abound 4. Rapidly developing infrastructure 5. Booming local market 6. Booming international trade 7. Life is booming in HoChiMinh City

1. Booming Economy:

HCMC’s increasing prosperity can be attributed to its exceptional economic growth and development.  

•  It has an average growth rate of 10.2% per year

•  It is experiencing an industrial growth rate of 13.2% 

•  CPI is up 1.54% in 2003 compared with 2000

• Achieving highest GDP per capita: $1,682 USD  in the country

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An entrepreneurial and industrious spirit pervades the Vietnamese business world. In recent years, HCMC has seen the emergence of a new class of successful entrepreneur.

• HCMC witnessed the emergence of 8,648 newly established enterprises in 2002, a 111% increase from the year before.

• New local brands have emerged and successfully established such as Dong Tam, Thien Long, Trung Nguyen, Thai Tuan, Kinh Do,…

• Well-educated business people with modern thinking make good potential partners

• Emerging stock market creates opportunity for alternative financing and indirect investment

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• Education is highly valued in Vietnamese society, which benefits from a 94% literacy rate. Furthermore, 30% of the public has proficient communication skills in English. And still, education continues to increase in quality and quantity
• HCMC boasts 30 universities and 27 vocational schools, including numerous business schools and programs. Courses in business management and marketing are also very prevalent.
• English language schools can be found throughout the city, with popular schools such as Apollo and AV Hoi Viet My. It is not uncommon to see business employees enrolled in night classes.
• Education abroad  is also popular, with an increasing amount of students studying in Australia , US, England , Canada , and Singapore every year.

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Ho Chi Minh City boasts the best infrastructure in the nation, including modern transportation and telecommunication systems.

• HCMC's Tan Son Nhat Airport is the largest and busiest airport in the country, connecting to 20 countries and territories and transporting over 5.5 million passengers in 2002

• The Saigon River port is the largest in the country, able to berth vessels with a loading capacity of over 30,000 tons.

• HCMC possesses a well developed telecom sector with a level of cost equal to the regional average.

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5. Booming local market

Vietnam , especially HCMC, has enormous market potential to make your investment a lucrative one.

• The population is young and growing, with over 50% under the age of 35. They are increasingly perceptive and trendy due to 21st century communication and susceptibility to foreign influence.

• Income is growing, as is disposable income and spending

• A mall culture is now prevalent. Shopping is about pleasure and no longer just to satisfy basic needs.
  Vietnamese spending patterns are ripe for foreign prospects.

• Consumers are quality conscious. They want the new and the latest, but they are not yet loyal so there is a lot of opportunity to build brands and businesses.

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6. Booming international trade

HCMC also serves as a valuable base for international trade.

• In December 2001, the US and Vietnam strengthened economic and commercial ties through the Bilateral Trade agreement (BTA), which stimulates trade and investment between the two nations. While both countries reduced export tariffs considerably, Vietnam also undertook various market liberalization measures. As a result, two-way trade in goods more than doubled in 2002 from the year before.

• In HCMC, you’ll find the opportunity to export or to use the city as a hub to expand your business throughout Southeast Asia.

• Vietnam is aggressively  negotiating for WTO member in 2005.

• No barriers here, only level playing fields

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7. Life is booming in HoChiMinh City

• No one could visit Hochiminh City without being intoxicated by its unique blend Eastern charm and Western comfort.

• The foreigners that live here get to enjoy an enviable and somewhat addictive lifestyle. There are international standard hotels, nightclubs, golf clubs, hospitals, restaurants and much more.

• Not only will you get to sample the finest Vietnamese cuisine, the city also caters for every other kind of food you can think of, from burgers to bouillabaisse.

• Most of the French architecture that gives the city its old-world charm and character is still here, and at the same time there are many contemporary buildings to cater for the needs of a burgeoning middleclass.

• Best of all, the local people in Hochiminh City have a surprisingly good command of English, and they often use it to make foreigners feel very welcome.

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