Vietnam Travel Business Assistance Fact File

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Basic Facts on Vietnam

Origin of the name

The name Vietnam has a rich history, reflecting the country’s long and independent past. The word “Việt” is an ethnic term with unknown origins, possibly dating back to before the first millennium BC. In Chinese characters, it could mean “beyond” or “hatchet.” “Nam” is a Vietnamese word derived from the Chinese word for “south.”

Early on, the territory was known by various names depending on the dynasty in power, such as Văn Lang and Đại Việt. The term “Nam Việt” (South Viet), combining elements of the modern name, emerged in the 2nd century BC. In the 19th century, Emperor Gia Long, seeking approval from China, proposed the name “Nam Viet” again. However, the Chinese emperor opted for “Việt Nam” (“South of the Viet” in Chinese order, but understood as “Viet of the South” by Vietnamese). This name gained official use in Vietnam between 1804 and 1813.

While the French colonial period favored the name “Annam,” Vietnamese nationalists like Phan Bội Châu revived “Vietnam” in the early 20th century. Finally, in 1945, “Việt Nam” became the official name of the country, reflecting both its ethnic heritage and geographical location.

Vietnam Flag

The national flag of Vietnam, also referred to as the ” cờ đỏ sao vàng” (yellow star on red background) or “cờ Tổ quốc” (flag of the Fatherland), is a simple yet symbolic design. Officially called the National Flag of the Socialist Republic of Vietnam, it features a bright yellow, five-pointed star centred on a field of red. The flag’s dimensions are two-thirds width to length.

Adopted in 1940 during an uprising against French rule, the red background of the Vietnamese flag is said to represent the revolution and bloodshed endured in the fight for independence. The yellow star, a common socialist symbol, signifies brightness and prosperity for the nation’s future. Interestingly, the design has roots in even earlier Vietnamese flags that incorporated variations of red and yellow.

Capital City of Vietnam

The capital of Vietnam is Hanoi, a vibrant city steeped in history and culture. Located in northern Vietnam on the banks of the Red River, Hanoi boasts a rich past dating back to the 11th century. This long history is evident throughout the city, with ancient temples, colonial architecture, and bustling street markets offering a glimpse into different eras.

Hanoi serves as the political, cultural, and educational centre of northern Vietnam. It is home to the national government, numerous universities, and over 70 foreign embassies. Beyond its administrative significance, Hanoi is a major tourist destination. Visitors flock to the city to experience its captivating atmosphere, explore historical landmarks like the Imperial Citadel of Thăng Long (a UNESCO World Heritage Site) and the Ho Chi Minh Mausoleum, or simply soak up the sights and sounds of the Old Quarter with its narrow streets and guildhalls

History & Independence

Early Encounters (111 BC – 938 AD):

111 BC – 938 AD: For over a millennium, Vietnam faced domination by various Chinese dynasties.
Resistance Flares: There were numerous uprisings against Chinese rule, most notably the Trung sisters’ rebellion in 40 AD.

Independence and Golden Age (938 AD – 1887):

938 AD: Ngô Quyền’s victory at the Battle of Bach Dang River marked a turning point, securing full independence from China.
968 AD: The Đại Việt kingdom was established, ushering in a golden era under the Lý and Trần dynasties.
10th – 15th Centuries: Vietnam thrived, developing a strong centralized government, flourishing agriculture, and a unique cultural identity heavily influenced by Buddhism.
14th – 17th Centuries: The kingdom successfully repelled Mongol invasions, solidifying its independence.

French Colonialism (1887 – 1945):

1887: France conquered Vietnam, integrating it into French Indochina.
French Rule: The French exploited Vietnam’s resources and imposed harsh colonial rule. Resistance movements emerged.

The Fight for Independence (1945 – 1975):

1945: Ho Chi Minh, leader of the communist Viet Minh, declared Vietnam’s independence following Japan’s defeat in World War II.
1946 – 1954: The First Indochina War: Vietnam fought for independence from France. The decisive victory at Dien Bien Phu forced France to withdraw.
1954 – 1975: Vietnam was divided at the 17th parallel. The North, led by Ho Chi Minh, became communist. The South remained capitalist, backed by the US. This division led to the Vietnam War.
1955 – 1975: The Vietnam War: A brutal proxy war between the US and the Soviet Union. The North Vietnamese communists emerged victorious.

Reunification and Modern Vietnam (1975 – Present):

1975: The fall of Saigon marked the end of the war and Vietnam’s reunification.
1976: The Socialist Republic of Vietnam was established.
1986: Economic reforms (Doi Moi) were introduced, shifting Vietnam towards a market economy.
Present Day: Vietnam has seen significant economic growth and development in recent decades. It is a one-party communist state with a growing private sector and increasing international influence.

Government

Vietnam operates under a single-party socialist republic system. The government itself is the executive branch and is officially called the Government of the Socialist Republic of Vietnam. It’s led by a Prime Minister, who is nominated by the President and approved by the National Assembly. The current Prime Minister is Phạm Minh Chính. The government is accountable to the National Assembly and reports to them as well as the State President. The government also consists of deputy prime ministers, ministers, and heads of ministerial-level agencies. There are 18 ministries, 4 ministry-level agencies, and 8 other government-dependent agencies that fall under the purview of the government.

Official Language

Vietnamese, also known as Tiếng Việt, is the official language of Vietnam and boasts a rich history and unique characteristics. Spoken by over 85 million people worldwide, primarily in Vietnam, it’s one of the most prominent members of the Austroasiatic language family. Interestingly, Vietnamese utilizes a modified Latin alphabet, unlike many other Asian languages that rely on character-based systems.

One of the most fascinating aspects of Vietnamese is its tonal nature. With six distinct tones, the pitch of your voice can completely change the meaning of a word. This can be a challenge for learners, but it adds a layer of complexity and beauty to the language.

Vietnamese also features a variety of dialects, with the northern Hanoi dialect forming the basis for the national standard. These dialects differ slightly in pronunciation and vocabulary, reflecting the rich cultural diversity within Vietnam.

While Vietnamese is the dominant language, Vietnam is home to over 50 ethnic minorities, each with their own language or dialect. This linguistic tapestry contributes to the country’s vibrant cultural heritage.

Business Culture

Vietnamese business culture thrives on relationship building. Trust is key, and it’s nurtured through face-to-face interactions and shared experiences. This means business relationships can extend beyond the office, involving meals and activities that allow for personal connection and a deeper understanding of each other. These connections are the foundation for successful collaboration.

Meetings follow a specific etiquette. Punctuality is valued, and agendas help keep discussions focused. Seniority is respected, with senior members taking the lead and offering their insights. Decisions are often made through a collaborative process, where everyone contributes and agreements are reached after thorough discussion. Be prepared for these meetings to run longer than scheduled.

Vietnam Demographics

Vietnam’s demographics present a fascinating picture of a youthful nation undergoing rapid change. With a population exceeding 99 million, Vietnam boasts a relatively young median age of 32.8 years. However, the fertility rate has dipped below replacement level, at around 2.01 births per woman. This trend, coupled with increasing life expectancy (over 73 years), suggests an aging population on the horizon. Vietnam is also experiencing significant urbanization, with nearly 40% of the population residing in urban areas. This shift is driven by economic opportunities and better living standards in cities like Ho Chi Minh City, but it also creates challenges like managing strain on infrastructure and resources. Ethnically, Vietnam is predominantly Kinh (Vietnamese people), but it also harbours a rich tapestry of minority groups residing in the mountainous regions.

Time Zone

Vietnam observes Indochina Time (ICT), also known as UTC/GMT+7. This means Vietnam is 7 hours ahead of Coordinated Universal Time (UTC) and Greenwich Mean Time (GMT). For comparison, the United Kingdom adheres to Greenwich Mean Time (GMT) or British Summer Time (BST) depending on the season. BST is GMT+1, so during the summer months, the UK is 6 hours behind Vietnam. In simpler terms, when it’s noon in Vietnam, it’s 5:00 am in the UK during winter and 6:00 am in the UK during summer. This significant time difference can be important when scheduling meetings or coordinating with colleagues in Vietnam from the UK.

Climate

Vietnam’s climate is a fascinating tapestry woven from monsoons, diverse topography, and latitude. The country experiences a monsoon-influenced climate, with variations depending on the region. In the north, a monsoonal and temperate climate prevails, offering four distinct seasons. Winters are dry and cool, ranging from 15-20°C (59-68°F). Summers get hot, sometimes reaching up to 35°C (95°F), but can also be mild, with occasional rain showers.

Central and southern Vietnam have a tropical monsoon climate with just two seasons: wet and dry. Temperatures throughout the year are consistently warm, averaging around 24-25°C (75-77°F). The wet season, influenced by the southwest monsoon, brings abundant rain from May to November. The dry season, under the influence of the northeast monsoon, arrives from December to April and offers sunshine and pleasant temperatures.

Further regional variations exist. The Central Highlands, for example, boast cooler year-round temperatures due to their higher elevation. The northwestern mountains experience distinct cold and dry winters with occasional frost, while summers are hot and rainy.

Borders Of Vietnam

Vietnam’s land border stretches for a total of approximately 4,550 kilometres (2,827 miles). To the north, Vietnam shares a 1,297 kilometres (806 mile) border with China. This border consists of both a land and maritime section, with the land portion being quite irregular and mountainous. Vietnam’s western borders consist of Laos to the northwest and Cambodia to the southwest. The total length of the Laotian border is unknown, but the Cambodian border stretches for about 1,139 kilometres (708 miles). Finally, Vietnam has a long coastline along the Eastern Sea (South China Sea) to the east, providing maritime borders with Thailand to the southwest, and the Philippines, Indonesia, and Malaysia to the south.

Size of Vietnam

Vietnam stretches across roughly 331,210 square kilometres (127,880 square miles) of land area, making it slightly larger than the US state of New Mexico. The country has an elongated, S-shaped form with an impressive 3,444 kilometres (2,140 miles) of coastline along the South China Sea and the Gulf of Thailand. Despite its coastal prominence, Vietnam is surprisingly narrow at some points, reaching just 50 kilometres (31 miles) wide in the central Quang Bình province. However, it widens considerably in the north, reaching up to 600 kilometres (370 miles) across. Overall, Vietnam’s landmass is predominantly hilly and covered in dense forests, with only around 20% of the area classified as flat land.

Religion

Vietnam’s religious landscape is a fascinating mix of tradition and foreign influence. Officially, the country is atheist due to its communist government. However, religion plays a significant role in Vietnamese life. The majority of Vietnamese practice elements of folk religions, which involve ancestor veneration, spirit worship, and offerings to deities. These practices often blend seamlessly with other established religions like Buddhism, the most widespread religion in Vietnam. Confucianism and Taoism, with their emphasis on social order and harmony with nature, have also had a profound impact on Vietnamese culture. Christianity, mainly Catholicism, arrived in the 16th century and has a dedicated following. Interestingly, Vietnam also has Cao Dai, a unique religion founded in the 1920s that combines elements of Buddhism, Christianity, and other belief systems. Overall, Vietnam’s religious identity is rich and diverse, reflecting a long history of cultural exchange and adaptation.

Vietnam Currency :

The official currency of Vietnam is the Vietnamese Dong, symbolized by ₫ (dồng) or VND internationally. Issued by the State Bank of Vietnam, the Dong has been in circulation since 1978. While coins were previously used, Vietnam’s currency has transitioned towards primarily banknotes. These banknotes come in denominations ranging from 10,000 VND to 500,000 VND, with lower denominations printed on paper and higher ones on polymer for durability. Interestingly, the large number of zeros on the Dong can be mentally simplified by removing three zeros for easier estimation. It’s worth noting that Vietnam is increasingly adopting digital payment methods, so you may find more options to pay electronically alongside cash.

Exchange Rate Dynamics

Vietnam’s exchange rate against major currencies experiences fluctuations. As of today (23/03/24), 1 VND is equivalent to approximately ₫ 31,276.

https://www.xe.com/currencyconverter/convert/?Amount=1&From=GBP&To=VND

Practical Tips for Using Vietnam Dong

Use Licensed Money Changers: Avoid Street vendors and stick to reputable establishments like banks or licensed money changers to get a fair rate and avoid counterfeit bills.
Shop Around for Rates: Compare rates between different money changers to get the best deal. Be aware of any commission fees they might charge.
Get a Mix of Bills: While large denominations are convenient, request a mix of smaller bills (like 20,000 VND, 50,000 VND) as many vendors might not have change for large notes.

Vietnamese Food

Vietnamese Gastronomy is known for its fresh, light, and flavourful dishes.

Iconic dishes:

Phở: This world-famous noodle soup is a must-try for any visitor to Vietnam. Phở is made with a rich beef broth, rice noodles, and thinly sliced beef. It is typically served with a plate of herbs and vegetables, such as bean sprouts, basil, mint, and lime wedges, that you can add to your liking.
Bún chả: This dish is made with grilled pork patties, rice vermicelli noodles, fresh herbs, and a dipping sauce. It is a popular street food dish in Hanoi and is often served with a side of pickled vegetables.
Gỏi Cuốn (Summer Rolls): Fresh and healthy, Goi Cuon are rice paper wrappers filled with shrimp, pork, herbs, and vegetables. They are typically dipped in a fish sauce-based nuoc cham for added flavor.
Bánh Mì: This Vietnamese sandwich is made with a crusty baguette filled with savory ingredients such as grilled pork, pate, pickled vegetables, herbs, and chili sauce. It is a popular and affordable lunch option.
Cơm Tấm: This dish features broken rice (cơm tấm) served with grilled pork or other toppings. It is a popular dish in southern Vietnam, particularly Ho Chi Minh City.
Bún Bò Huế: This spicy noodle soup originates from the former imperial capital of Huế. It is made with a beef broth flavored with lemongrass, shrimp paste, and chilies, and contains rice vermicelli noodles, sliced beef, and various herbs.
Cao Lầu: This unique dish from Hoi An is made with rice noodles that are stir-fried with pork, shrimp, and crispy fried wonton crackers. It is served with a variety of fresh herbs and vegetables.
Lacquered duck: “Lacquered Duck” in Vietnamese cuisine called Vịt Quay, which translates to “Roast Duck.” This dish features a whole duck marinated in a flavourful mixture of spices, herbs, and sometimes honey. The duck is then typically boiled or parboiled before being roasted or lacquered to achieve a crispy, glistening skin. Vịt Quay is often served with dipping sauces like nước mắm (fish sauce) and various fresh herbs and vegetables.
Tamarind crab: Tamarind Crab, also known as “Cua Rang Me” in Vietnamese, is a delectable seafood dish featuring fresh crab cloaked in a sweet, sour, and savory tamarind sauce. This classic Vietnamese recipe is a popular choice among both locals and tourists. The key ingredient is tamarind, a tropical fruit with a tangy flavor that provides a delightful counterpoint to the crab’s sweetness. Typically, the crabs are fried until golden brown for added texture, then bathed in a flavorful tamarind sauce simmered with aromatics like garlic, shallots, and chilies. The resulting dish is a beautiful interplay of tastes and textures, making it a true star of Vietnamese cuisine.

Thinks to see and do in Vietnam

Phong Nha-Ke Bang National Park:Phong Nha-Ke Bang National Park resides in Vietnam’s Quang Binh Province, bordering the Hin Namno Reserve in Laos . Established in 2001 and recognized as a UNESCO World Heritage Site in 2003, the park encompasses over 123,000 hectares of dramatic landscapes. Encompassing a section of the Annamite Mountain Range, the park features towering limestone karsts, lush rainforests, and a network of underground rivers and caves. The park’s most captivating feature is its system of caves, including Son Doong, the world’s largest cave by volume. Other notable caves include Phong Nha Cave, accessible by boat, and Paradise Cave, which features walking paths that wind through its chambers. The park is also home to a diversity of wildlife, including Bengal tigers, Asian black bears, and elephants.
Cuc Phuong National Park:Cuc Phuong National Park, established in 1962, holds the distinction of being Vietnam’s first national park and its largest nature reserve. Encompassing over 22,400 hectares spread across Ninh Binh, Hoa Binh, and Thanh Hoa provinces, the park is a treasure trove of biodiversity. Lush rainforests teeming with ancient trees serve as a sanctuary for a staggering variety of flora and fauna. Over 2,234 plant species, 135 mammal species, 336 bird species, and 122 reptile species thrive within the park’s boundaries. The park also boasts significant historical and cultural value. Evidence of human habitation dating back thousands of years has been unearthed here, including fossils of marine reptiles from 200 to 230 million years old.
Ha Long Bay: Hạ Long Bay, a UNESCO World Heritage Site in northeastern Vietnam, is a breathtaking natural wonder known for its emerald waters and thousands of towering limestone islands topped by rainforests. The name itself translates to “Descending Dragon Bay” in Vietnamese, reflecting the legend of a dragon who dived into the sea to protect the Vietnamese people. Hạ Long Bay boasts over 2,000 islets sculpted by millions of years of erosion. These limestone pillars rise dramatically from the turquoise waters, some reaching hundreds of feet in height. Many of the islands have been given evocative names that reflect their shapes, including Stone Dog and Teapot. Exploring Hạ Long Bay is a journey into a mystical landscape. Visitors can cruise through the bay on traditional junks, kayaks, or seaplanes, marveling at the towering rock formations and hidden grottoes. Some of the most popular caves include Thien Cung Grotto (Heavenly Palace Cave) and Dau Go Cave (Wooden Stake Cave), both featuring magnificent stalactites and stalagmites. The bay is also home to Cát Bà Island, a national park known for its beaches, hiking trails, and rich biodiversity.
Ninh Binh: Ninh Binh, a captivating destination nestled in the Red River Delta of Northern Vietnam, is a place where nature, history, and culture beautifully converge. Often referred to as “Ha Long Bay on land” due to its dramatic landscapes, Ninh Bình boasts towering limestone cliffs, lush rice paddies, and emerald green waterways. For adventurers, Ninh Binh offers spelunking adventures, pristine trekking trails, and opportunities to cycle through idyllic countryside. History buffs will be enthralled by the ancient capital of Hoa Lu, the stunning temples of Bai Dinh Pagoda, and the unique Phat Diem Stone Church, a fascinating fusion of Vietnamese and European architecture. Nature lovers can take a boat ride through the Trang An Scenic Landscape, a UNESCO World Heritage Site featuring caves, grottoes, and temples amidst a stunning karst landscape. Ninh Binh is a destination that caters to a variety of interests, offering an unforgettable travel experience.
Sa Pa: Sa Pa is a charming town nestled amidst the Hoang Lien Son mountains in northwestern Vietnam, close to the border with China. This region boasts dramatic landscapes, including Vietnam’s highest peak, Fan Si Pan, which reaches 3,143 meters (10,312 feet). Sa Pa’s cool climate and stunning scenery have made it a popular tourist destination, especially for trekking enthusiasts. Trekkers can embark on multi-day guided hikes through the mountains, encountering rice terraces, cascading waterfalls, and remote villages inhabited by ethnic minority groups such as the Hmong, Tay, and Dao. Beyond trekking, Sa Pa offers a variety of cultural experiences. Visitors can wander through the bustling Sa Pa Market, where local crafts and textiles are sold, or visit Cat Cat Village, a traditional Hmong village showcasing their way of life. Sa Pa is also a great place to relax and enjoy the fresh mountain air. Soak up the views from the top of the Fansipan Legend cable car, the highest cable car in Asia, or take a leisurely stroll through the town’s charming French colonial architecture.
Mui Ne Sand Dunes: Nestled along the coast of southern Vietnam, the Mui Ne Sand Dunes offer a surprising desert landscape amidst the tropical paradise. This geologic wonder consists of two distinct sections: the Red Sand Dunes and the White Sand Dunes. The Red Sand Dunes, also known as the Mui Ne Sand Dunes, lies approximately 25 kilometers northeast of Mui Ne. These terracotta-coloured dunes are known for their dramatic formations, constantly sculpted by the ever-present winds. They are a popular destination for tourists seeking to partake in sandboarding, jeep tours, or simply marvel at the sunset casting an orange glow over the rippled landscape. The White Sand Dunes, also known as the Bau Trang Sand Dunes, lie further afield, roughly 62 kilometers from Mui Ne. This stretch of pristine white sand dunes evokes a sense of serenity, offering a vast expanse for exploration. Visitors can climb the dunes for panoramic views of the surrounding coastline or rent a quad bike to traverse the soft sand.

Culture and History:

The Temple of Literature: The Temple of Literature, also accurately referred to as the Temple of Confucius (Văn Miếu in Vietnamese), is a historical landmark and cultural gem situated in Hanoi, Vietnam. Founded in 1070 by Emperor Ly Thanh Tong, the temple honors the revered Chinese philosopher Confucius and Vietnamese scholars. It significantly served as Vietnam’s first national university, known as the Imperial Academy (Quốc Tử Giám), from 1076 to 1779. The temple complex stands as a testament to Vietnam’s rich history in education and its emphasis on Confucian ideals. Even today, the picturesque courtyards and halls adorned with traditional architecture provide a serene atmosphere, while the altars remain popular with students seeking blessings for academic success.
Ho Chi Minh Mausoleum: The President Ho Chi Minh Mausoleum is a significant landmark in Hanoi, Vietnam. It serves as the final resting place of Ho Chi Minh, the revered revolutionary leader and first president of North Vietnam. The mausoleum is situated in the heart of Ba Dinh Square, the very spot where Ho Chi Minh declared Vietnam’s independence from France in 1945. Construction of the mausoleum began in 1973 and was completed in 1975, nearing the conclusion of the Vietnam War. The architectural design is believed to be inspired by Lenin’s Mausoleum in Moscow, Russia. The mausoleum itself is a grand structure featuring a grey granite exterior. Its main building stands at 21.6 meters tall and 41.2 meters wide. The body of Ho Chi Minh lies preserved in a glass sarcophagus inside the mausoleum. Public viewing is available in the mornings except for Mondays. Visiting the Ho Chi Minh Mausoleum is a must-do activity for anyone interested in Vietnamese history and culture. It’s a place to pay respects to a national hero and learn more about the country’s fight for independence. Keep in mind that there’s a dress code to adhere to when visiting the mausoleum. Sleeveless shirts, shorts, and ripped clothing are not permitted.
Old Quarter: The Old Quarter, also known as ‘Hanoi 36 Streets’, is the historic centre of Hanoi, Vietnam. Located just west and north of Hoan Kiem Lake, this vibrant area was once a commercial hub where each street specialized in a particular trade. Today, the Old Quarter remains a bustling commercial district, but it is also a major tourist destination. The Old Quarter is a maze of narrow streets lined with traditional shophouses. These buildings are typically tall and narrow with overhanging upper floors. The ground floors house shops selling everything from Vietnamese crafts and clothing to food and local produce. The Old Quarter is also home to several temples, pagodas, and historic buildings. A great way to explore the Old Quarter is on foot or by cyclo, a three-wheeled bicycle taxi. Be sure to try some of the street food, which is a delicious and affordable way to sample Vietnamese cuisine. In the evenings, the Old Quarter comes alive with night markets where visitors can find souvenirs, clothing, and local crafts.
Hoan Kiem Lake: Hoan Kiem Lake, also known as Sword Lake or Lake of the Restored Sword, is a freshwater lake in the heart of Hanoi, Vietnam’s capital city. Spanning roughly 12 hectares, the lake is a popular spot for locals and tourists alike. The lake is steeped in history and legend. Its most famous legend tells the tale of Emperor Le Loi, who received a magical sword from a giant golden turtle dwelling in the lake, which helped him defeat the Ming Dynasty. After his victory, the turtle surfaced again, urging the emperor to return the sword. The emperor complied, and the lake has been known as Hoan Kiem (Lake of the Restored Sword) ever since. Today, Hoan Kiem Lake is a scenic spot offering a respite from the bustling city. Visitors can stroll along the lake’s perimeter, enjoying the pleasant views and fresh air. The iconic Ngoc Son Temple (Temple of the Jade Mountain) sits on a small island in the centre of the lake, accessible by The Huc Bridge, a striking red wooden bridge. The lake is also a popular spot for locals to participate in tai chi exercises in the early mornings.

Hoi An: Hoi An, a city on Vietnam’s central coast, is renowned for its remarkably well-preserved Ancient Town, a labyrinth of narrow streets threaded with canals. This former port city thrived between the 15th and 19th centuries, welcoming traders from all corners of the globe. As a result, Hoi An’s architecture reflects a fascinating fusion of influences, with wooden Chinese shophouses standing shoulder-to-shoulder with colourful French colonial buildings, ornate Vietnamese tube houses, and the iconic Japanese Covered Bridge with its distinctive pagoda roof. Declared a UNESCO World Heritage Site in 1999, Hoi An’s captivating streets are a delight to explore on foot, offering a glimpse into a bygone era.

Hue: Hue is a captivating city in Vietnam’s central region, and boasts a rich history and cultural significance. Once the imperial capital of the Nguyễn Dynasty (1802-1945), Hue’s legacy is evident in its architectural marvels. The UNESCO-listed Complex of Huế Monuments encompasses the Citadel, a fortified palace complex housing the Forbidden Purple City and imperial structures. Beyond the citadel, visitors are drawn to the Perfume River, which bisects the city, serene pagodas like Thien Mu Pagoda, and the royal tombs scattered around the outskirts. Hue’s culinary scene is another treasure, offering specialties like Bun Bo Hue, a spicy beef noodle soup, reflecting the city’s past as a royal centre.
Ha Long Bay: Hạ Long Bay, a UNESCO World Heritage Site and one of the New Seven Wonders of Nature, is a mesmerizing destination in northeastern Vietnam. The name itself translates to “Descending Dragon Bay,” inspired by the legend of a dragon diving into the sea to protect the Vietnamese people. Scattered across the emerald waters of the Gulf of Tonkin are nearly 2,000 limestone pillars and islets, dramatically rising from the sea. These karst formations, sculpted by millions of years of erosion, jut from the water in all shapes and sizes, some even sporting lush vegetation on their tops. Exploring Hạ Long Bay is a journey into a fantastical landscape. Visitors can cruise through the bay on traditional junks, marvelling at the natural wonders like Thien Cung Cave (Heavenly Palace Cave) and Sung Sot Cave (Surprise Cave). Adventurous travellers can kayak amongst the islands, go spelunking in hidden grottoes, or even rock climb the cliffsides. Cát Bà Island, the largest island in the bay, offers opportunities for hiking through verdant national parks and encountering local wildlife.
My Son Sanctuary: The My Son Sanctuary is a collection of partially ruined temples constructed between the 4th and 14th centuries by the Cham people, an Indianized kingdom that once thrived in central Vietnam. Located in Duy Xuyen District, Quang Nam Province, the sanctuary is a UNESCO World Heritage Site and serves as a testament to the Champa civilization’s artistic and architectural genius. Built as Hindu temples dedicated to the god Shiva, these towers are constructed from red brick and feature intricate carvings depicting religious scenes and figures. Today, around 20 towers remain standing, though what’s left offers a glimpse into the grandeur of this religious centre. Visitors can explore the various groups of towers, which are linked by walls and walkways, and appreciate the unique architectural styles that reflect the different eras of the Champa kingdom. The My Son Sanctuary is a fascinating destination for those interested in Vietnamese history, art, and religion.
Cu Chi Tunnels: Dam Sen Water Park is part of a larger amusement and entertainment complex called Dam Sen Park, located in Ho Chi Minh City, Vietnam. Opened in 1999, the water park features over 30 water attractions suitable for all ages. There are high-adrenaline slides like the 19-meter-tall Kamikaze and the Tornado slide, a relaxing wave pool, and a dedicated kid’s area with smaller slides and water features. Beyond the water park, Dam Sen Park offers a variety of other activities, including a botanical garden, electronic games, roller coasters, a monorail train, a mini zoo, a butterfly farm, and miniature lakes. There’s also a Roman square with a light and musical water theatre that can seat up to 3,000 people. With its combination of water thrills and family-friendly entertainment options, Dam Sen Water Park is a popular destination for both locals and tourists visiting Ho Chi Minh City.

Thrills and Entertainment:

Dam Sen Water Park: Dam Sen Water Park is part of a larger amusement and entertainment complex called Dam Sen Park, located in Ho Chi Minh City, Vietnam. Opened in 1999, the water park features over 30 water attractions suitable for all ages. There are high-adrenaline slides like the 19-meter tall Kamikaze and the Tornado slide, a relaxing wave pool, and a dedicated kid’s area with smaller slides and water features. Beyond the water park, Dam Sen Park offers a variety of other activities, including a botanical garden, electronic games, roller coasters, a monorail train, a mini zoo, a butterfly farm, and miniature lakes. There’s also a Roman square with a light and musical water theatre that can seat up to 3,000 people. With its combination of water thrills and family-friendly entertainment options, Dam Sen Water Park is a popular destination for both locals and tourists visiting Ho Chi Minh City.

Vinpearl Land: Vinpearl Nha Trang, now known as Vin Wonders Nha Trang, is a large resort and entertainment complex located on Hon Tre Island, off the coast of Nha Trang city in Vietnam. It’s a popular destination for families, offering a variety of attractions including a theme park, water park, aquarium, and wildlife park. The resort also boasts beautiful beaches, five-star hotels, and a range of dining options. Vin Wonders Nha Trang is divided into six zones, each with its own unique theme. The Adventure Land zone features thrilling rides and rollercoasters, while the Fairy Land zone is perfect for younger children. The Water World zone offers a variety of water slides and pools, while the Sea World zone is home to an aquarium and a variety of marine life. The Paradise Land zone features a selection of gardens and flower displays, and the World Festival zone celebrates cultures from around the world. In addition to the theme park attractions, Vin Wonders Nha Trang also offers a variety of other activities and entertainment options. Visitors can enjoy a variety of live shows, participate in cultural activities, or simply relax on the beach. The resort is also home to a number of restaurants and bars, serving Vietnamese and international cuisine.
Ba Na Hills: Sun World Ba Na Hills, also known as Ba Na Hill Station, is a renowned resort and recreational complex nestled amidst the Trường Sơn Mountains, west of Da Nang City in central Vietnam. At an elevation of 1,487 meters above sea level, Ba Na Hills offers a captivating escape with cooler temperatures, stunning natural landscapes, and a unique blend of entertainment options. This all-encompassing destination boasts distinct experiences within a single location. Take a ride on the world’s longest three-wire cable car system, marvelling at the breathtaking scenery as you ascend the mountains. Explore French Village, a charming replica of a French village complete with a cathedral and half-timbered houses, reminiscent of a European getaway. For the thrill-seekers, Fantasy Park provides a range of exciting rides and games, while the adventurous can test their courage on the Alpine Coaster. History buffs can delve into the Debay Wine Cellar, a relic from French colonial times, and unwind amidst the European-inspired architecture scattered throughout the hills. Sun World Ba Na Hills caters to a variety of tastes, offering delectable culinary experiences from Vietnamese specialties to international cuisines. Whether you seek relaxation, adventure, cultural immersion, or pure entertainment, Ba Na Hills offers an unforgettable experience for travelers from all walks of life.
Lady Buddha: Vietnam’s most prominent Buddha statue holds a unique distinction. The Lady Buddha, located at Linh Ung Pagoda on the Son Tra Peninsula near Da Nang, is the tallest Buddha statue in Vietnam, reaching an impressive 67 meters (220 feet) in height. Constructed on a lotus-shaped base, the statue offers stunning views of the surrounding landscape. Inside the Lady Buddha are 17 floors, each dedicated to a different Buddha statue. Visitors can climb the many stairs for a closer look and a truly immersive experience. The pagoda itself is a beautiful example of Vietnamese architecture, blending modern and traditional styles. Notably, the kind-faced Lady Buddha statue gazes out towards the sea, with one hand raised in a gesture of blessing and the other holding a bottle of holy water, symbolizing peace and protection for local fishermen.

Relaxation and Leisure:

Phu Quoc Island also known as the Pearl Island, is the largest island in Vietnam. It’s located off the coast of Cambodia in the Gulf of Thailand and is known for its stunning natural beauty. The island boasts white-sand beaches, turquoise waters, and a dense tropical jungle that makes up more than half of the island and is protected as Phu Quoc National Park. Phu Quoc offers something for everyone, from beach bums and relaxation seekers to adventure enthusiasts and culture vultures. Visitors can spend their days swimming, sunbathing, snorkeling, or diving in the crystal-clear waters. There are also plenty of opportunities for hiking, biking, and exploring the island’s many waterfalls and caves. For a touch of culture, head to the bustling Duong Dong town, where you can visit the Dinh Cau Night Market, sample the local cuisine, or shop for souvenirs. Phu Quoc is also home to a number of resorts and spas, making it the perfect place to relax and unwind.
Nha Trang is a popular resort city located in southern Vietnam, known for its beautiful beaches, diving sites, and offshore islands. It boasts a long, curving stretch of beach along Tran Phu Street, lined with a promenade, hotels, and fresh seafood restaurants. For a sky-high view, you can ride the aerial cable cars that cross over to Hòn Tre Island. Nha Trang is also a gateway to the natural wonders of Hòn Mun Island and Hòn Tằm Island, both offering stunning coral reefs accessible by boat. Beyond the beaches, Nha Trang offers a vibrant nightlife scene, especially during the Vietnamese New Year. The rainy season (particularly November) is the least ideal time to visit, but otherwise, Nha Trang is a great destination year-round with pleasant weather and plenty of activities.
Da Nang: Da Nang is a coastal city located in central Vietnam. It’s a popular destination known for its beautiful beaches, delicious street food, and historical sites. Da Nang boasts some of Vietnam’s top luxury resorts, but a large stretch of the beach is still a public area where locals enjoy swimming, sunbathing, and other recreational activities. The city is also a great base for exploring nearby UNESCO World Heritage Sites, including the Imperial City of Hue, the Old Town of Hoi An, and the Mỹ Sơn ruins. Da Nang is divided into six districts, each with its own unique character. The most popular tourist areas are Hai Chau, Son Tra, Ngu Hanh Son, and Lien Chieu. If you are looking for relaxation on the beach, Hai Chau is a great choice. Son Tra is known for its beautiful scenery and the Lady Buddha statue. Ngu Hanh Son, also known as the Marble Mountains, is a cluster of five marble mountains with caves, pagodas, and stunning views. Lien Chieu is a more traditional district with a fishing village and a lively market. Da Nang has a tropical monsoon climate with distinct wet and dry seasons. The best time to visit is during the dry season, which runs from March to May and September to October. During this time, the weather is warm and sunny, with little rain. The rainy season lasts from November to February and can bring long periods of rain.
Mui Ne is a coastal fishing town located in the south-central Bình Thuan Province of Vietnam. Once a small town, Mui Ne has transformed into a popular resort destination since the mid-1990s. Today, Mui Ne boasts over a hundred beach resorts, restaurants, bars, shops, and cafes lining its 50 kilometers of coastline. Mui Ne is famous for its long, palm-lined stretch of sand and steady wind conditions, particularly during the dry season (November to March). These conditions make Mui Ne a top destination for windsurfing, kitesurfing, sailing, and other water sports. Mui Ne is famous for its long, palm-lined stretch of sand and steady wind conditions, particularly during the dry season (November to March). These conditions make Mui Ne a top destination for windsurfing, kitesurfing, sailing, and other water sports. Other interesting attractions in Mui Ne include the Mui Ne Fishing Village, the Po Sah Inu Cham Towers, and the Forgotten Land. The Mui Ne Fishing Village offers a glimpse into the traditional life of local fishermen, while the Po Sah Inu Cham Towers are a UNESCO World Heritage Site dating back to the 7th and 12th centuries. The Forgotten Land is a sculpture garden featuring giant clay statues inspired by fairytales and mythology.

Festivals and Events:

Tet Nguyen Dan (Vietnamese Lunar New Year): is the most significant celebration in Vietnamese culture. It marks the arrival of spring based on the Vietnamese lunar calendar, typically falling in January or February on the Gregorian calendar. Tet is a week-long festivity focused on family reunions, ancestor veneration, and welcoming good luck for the upcoming year. Preparations begin before the official holiday, with families cleaning their homes, decorating with altars and flowers, and preparing special foods like Banh Chung and Banh Tet. The celebrations themselves are filled with traditions like visiting family and temples, exchanging gifts, and participating in folk games. Tet is a vibrant display of Vietnamese culture, reflecting their deep respect for ancestors, emphasis on family, and joyous optimism for the future.
Hue Festival: is a major cultural event held in Hue City, Vietnam, every two years. Founded in 2000, it’s a week-long celebration aimed at honoring the rich cultural and historical heritage of Hue, the former capital of Vietnam under the Nguyen Dynasty (1802-1945). The festival features a wide range of events, including traditional performances, art exhibitions, street parades, food fairs, and royal ceremonies reenactments. One of the highlights of the Hue Festival is the opening ceremony, a grand spectacle featuring colourful floats, elaborate costumes, and traditional music. Visitors can also enjoy performances of royal court music, known as Nha Nhac, which has been recognized by UNESCO as a Masterpiece of the Oral and Intangible Heritage of Humanity. Other popular events include the Ao Dai fashion show, showcasing the traditional Vietnamese long dress, and the boat racing competition on the Perfume River.
Hoi An Lantern Festival is a magical monthly event held in the ancient town of Hoi An, Vietnam. On the night of the full moon, the town transforms into a wonderland as thousands of colourful lanterns illuminate the streets and the Thu Bon River.The festival is steeped in history, dating back to the 16th and 17th centuries when Hoi An was a thriving trade centre. Chinese and Japanese influences are evident in the lanterns, which were originally hung by residents as a way to remember their homelands. Today, the lanterns are a symbol of Hoi An and the festival is a celebration of light, happiness, and good luck. During the festival, the electricity in the Old Town is turned off, and the streets come alive with the warm glow of candlelit lanterns. Visitors and locals alike can purchase floating lanterns, write wishes on them, and release them onto the river, creating a truly unforgettable spectacle. In addition to the lanterns, the festival features traditional Vietnamese performances, music, and dancing. The biggest celebration takes place on the first full moon of the lunar new year, but the festival is held every month, making it a great reason to plan your trip to Hoi An around this enchanting event.
Mid-Autumn Festival: Celebrated on the 15th day of the 8th lunar month, Vietnam’s Mid-Autumn Festival, or Tết Trung Thu, is a vibrant occasion rich with traditions. Often referred to as the “Children’s Festival,” it’s a time for families to gather and enjoy the full moon, considered the brightest of the year. Children take centre stage, carrying brightly lit lanterns in shapes like animals and celestial bodies during joyful parades. Altars are prepared with offerings of mooncakes, a sweet pastry with a variety of fillings, and fruits. The festival is a beautiful blend of cultural touchstones, from honoring deities to cherishing the innocence of children.

Living in Vietnam

Housing and Living Cost

Vietnam offers a spectrum of living costs depending on your desired lifestyle and location. Major cities like Ho Chi Minh City and Hanoi will have the highest rents, ranging from $200 for a studio apartment to over $1,000 for a luxurious villa. However, even in these metropolises, a comfortable middle-class lifestyle for a couple is achievable for under $1,300 per month. In smaller cities and towns, the cost-of-living dips significantly. Here, a budget of $800 to $1,100 can provide a lovely home, utilities, groceries, and even regular dining out. Ultimately, Vietnam caters to a variety of budgets, from budget-conscious travellers to those seeking a life of luxury.

Health and Education Facilities

Vietnam’s health and education systems offer a mix of public and private facilities. The government prioritizes education, with investments leading to high enrolment rates and achievements in core subjects. The public school system forms the backbone, complemented by private institutions. Universities offer a range of academic and vocational programs. Healthcare follows a similar structure, with public hospitals providing subsidized care and private facilities catering to those seeking more specialized or premium services. Vietnam’s education system has seen significant improvements in recent decades, with a focus on teacher quality and curriculum development. The healthcare system is also undergoing modernization, incorporating new technologies and practices. While disparities exist between urban and rural areas, Vietnam is continuously working to ensure equitable access to quality education and healthcare for its citizens.

Investing in Vietnam

Economy in Vietnam

Vietnam boasts a developing mixed socialist-oriented market economy, ranking 35th globally by nominal GDP. This unique system incorporates industrial policies and strategic five-year plans alongside market principles. Despite its lower-middle-income status, Vietnam offers a low cost of living and has experienced remarkable growth. Since the 1980s, it transitioned from one of the world’s poorest nations to a middle-income economy, fuelled by economic reforms and globalization.

Vietnam’s economic success hinges on several factors. A strong manufacturing sector, particularly in electronics, now accounts for a significant portion of exports. Additionally, agriculture remains a vital sector, employing a large part of the workforce. The service industry is also rapidly developing. Foreign direct investment plays a crucial role, driving growth and exports. Looking ahead, Vietnam faces challenges such as dependence on foreign investment and a need to diversify exports. However, with its solid foundations and focus on innovation, Vietnam’s economy is projected for continued growth in the coming years.

Political Overview

Vietnam operates under a one-party system with the Communist Party of Vietnam (CPV) holding the dominant role. The Constitution designates Vietnam as a socialist republic guided by Marxism-Leninism and Ho Chi Minh Thought. The CPV, while the sole party, does allow for a limited number of other parties to exist. However, these parties hold no real power and ultimately support the CPV’s leadership.

The government structure features a National Assembly, the supreme legislative body. The Assembly elects the President (head of state) and approves the Prime Minister (head of government) nominated by the President. However, the true centre of power lies with the General Secretary of the CPV, who leads the Politburo and the Central Military Commission. This position effectively makes the General Secretary the country’s supreme leader.

It’s important to note that Vietnam’s political landscape has evolved since its reunification in 1975. While the CPV remains firmly in control, the country has embraced economic reforms and witnessed a growing middle class. This has led to increased social and economic freedoms, although restrictions on political expression persist.

Legal in Vietnam

Vietnam’s legal system follows a civil law tradition, meaning it relies heavily on codified statutes and regulations rather than judicial precedent. Here’s a breakdown of key aspects:

Sources of Law

Legislation:

Constitution: The supreme legal document, establishing the foundation for the entire legal system.
Laws: Passed by the National Assembly, these are the most comprehensive legal instruments addressing specific areas like civil, criminal, or commercial law.
Resolutions of the National Assembly: Address specific legal issues or provide interpretations of existing laws.

Subordinate Legislation:

Ordinances: Issued by the Standing Committee of the National Assembly when it’s not in session, with the force of law similar to Acts.
Orders and Decisions:
- Orders: Issued by the State President for promulgating Laws and Ordinances.
- Decisions: Issued by the Prime Minister on implementing regulations or addressing specific matters.

Interpretative Documents:

Resolutions of the Justices Council of the Supreme People’s Court: Provide guidance on interpreting laws and serve as a source of law (Article 21 of the Law on Organization of Courts).
Circulars: Issued by various authorities to clarify and explain the application of laws and regulations. These include:
- Circulars of the Chief Justice: Explanations from the Supreme People’s Court.
- Circulars of the President of the Supreme People’s Procuracy: Guidance from the national prosecuting authority.
- Circulars of Ministers or Heads of Ministry-equivalent Agencies: Clarifications from relevant ministries.

International Law:

Treaties: Ratified international treaties become part of Vietnamese law and are applied domestically.

Court System in Vietnam

Structure:

Four-Tiered System: The court system comprises four main levels:
- Supreme People’s Court: The highest judicial body, led by a Chief Justice appointed by the National Assembly.
- People’s High Courts: Three courts serve specific regions (North, Central, South).
- Provincial People’s Courts: 63 courts located throughout Vietnam’s provinces.
- District People’s Courts: The lowest level with over 710 courts handling cases at the local level.
Military Courts: A separate system exists for the Vietnamese People’s Army, with the Central Military Tribunal as the highest body.

Specialization:

Provincial and High Courts: These courts handle both trial-level cases and appeals from lower courts. They often have specialized divisions for specific cases, such as criminal, civil, administrative, economic, labour, and family/juvenile matters.

People’s Assessors:

Non-Professional Judges: Unlike a jury system, Vietnam utilizes people’s assessors who participate alongside judges in certain trials. These assessors are chosen for their relevant experience and qualifications by local People’s Councils or courts.
Advisory Role: Assessors review case files and offer their opinions to the judge, who ultimately makes the final decision.

3.3 Key Characteristic of Law in Vietnam

Socialist Legal Tradition: This foundation stems from Vietnam’s historical association with communist ideology. The legal system emphasizes social order, collective interests, and state control.
Market-Oriented Legal Framework: As Vietnam shifted towards a market economy, its legal system incorporated principles like private ownership, contract law, and foreign investment regulations. This fosters economic activity and integration with the global market.

This combination creates a dynamic legal environment:

State plays a significant role: The government enacts laws, regulates various sectors, and plays a role in dispute resolution.
Emphasis on social stability: Laws often consider the potential impact on social harmony alongside economic goals.
Market principles are enshrined: Contract sanctity, property rights, and dispute resolution mechanisms facilitate commerce.

Unique Aspects of the System in Vietnam

Socialist Legacy:

Civil Law Foundation: Vietnam’s legal code is rooted in the civil law tradition, similar to continental Europe. This system emphasizes codified laws and statutes as the primary source of legal authority.
Socialist Ideals: The influence of socialist ideology is evident in areas like state ownership, social welfare provisions, and a focus on collective interests.

Borrowing from Abroad:

French Influence: French colonial rule left a lasting mark. The Civil Code and Penal Code of Vietnam bear a strong resemblance to their French counterparts.
Modernization Efforts: Since the economic reforms (Doi Moi) in the late 1980s, Vietnam has actively incorporated elements from common law systems, particularly regarding commercial and investment laws, to attract foreign investment.

Customary Law:

Village Practices: In rural areas, traditional practices and customs still hold sway in resolving everyday disputes, particularly within families and communities.
Limited Scope: However, customary law plays a diminishing role in formal legal proceedings.

Evolving Landscape:

Integration with International Law: Vietnam’s growing role in the global economy necessitates adherence to international treaties and conventions. This continuous integration shapes its legal framework.
Party Supremacy: Despite legal reforms, the Communist Party of Vietnam retains ultimate authority, influencing legal interpretations and policy directions.

Uniqueness in Practice:

This confluence of influences creates a dynamic legal system. Here are some unique aspects:

Focus on Reconciliation: Vietnamese courts often prioritize mediation and reconciliation in disputes before resorting to formal adjudication.
Administrative Procedures: Administrative procedures hold significant weight, with a focus on obtaining permits and approvals from government agencies.
Limited Judicial Review: The power of judicial review over government actions is still evolving.

Foreign Investment Agency of Vietnam (FIA):

The Foreign Investment Agency (FIA) is an essential government agency for foreign businesses considering investing in Vietnam. It operates under the Ministry of Planning and Investment (MPI) and serves as the designated administrative body for promoting and managing foreign direct investment (FDI) in the country.

Key Functions of the FIA:

Promotion: The FIA actively promotes Vietnam as an attractive investment destination by disseminating information on investment opportunities, highlighting the country’s economic strengths, and simplifying investment procedures.
Management: The FIA plays a crucial role in managing foreign investment activities in Vietnam. This includes processing investment license applications, overseeing compliance with investment regulations, and resolving issues faced by foreign investors.
Support: The FIA provides valuable support to foreign investors throughout the investment process. This includes offering guidance on navigating Vietnamese regulations, assisting with business establishment procedures, and connecting them with relevant government agencies and local partners.

Benefits of Engaging with the FIA:

Access to Information: The FIA website serves as a comprehensive resource for foreign investors, providing essential information on investment policies, procedures, legal frameworks, and business opportunities in Vietnam.
Streamlined Procedures: The FIA works to streamline investment licensing procedures, making it easier for foreign businesses to establish and operate in Vietnam.
Expert Guidance: The FIA’s team of experienced professionals can offer valuable guidance and support on navigating Vietnamese investment regulations and processes.

Investment

Establishing a Company in Vietnam as a Foreigner

Preparation:

Research: Thoroughly research Vietnam’s investment policies, legal framework, and business landscape for your chosen industry. Identify any restrictions or pre-investment approvals required in your sector.
Company Structure: Select the most suitable business structure for your company. Common options include Limited Liability Company (LLC) and Joint Stock Company. Consider factors like liability, taxation, and ease of management.
Legal and Tax Advice: Partner with a reputable Vietnamese law firm or business consultancy. They can guide you through legalities, navigate regulations, and ensure compliance.

Company Registration Process:

Pre-investment Approval (if required): Certain industries may necessitate pre-approval from relevant authorities. Your legal counsel will advise on this step.
Investment Registration Certificate (IRC) Application: Submit an application for the IRC to the Provincial People’s Committee. This application outlines your investment project details, feasibility study, and proposed company charter. The IRC is typically issued within 15 working days.
Enterprise Registration Certificate (ERC) Application: Once you receive the IRC, apply for the ERC at the Department of Planning and Investment (DPI). This involves submitting documents like the company charter, business location lease agreement, and proof of capital contribution.
Post-licensing Procedures: After obtaining the ERC, complete additional procedures like obtaining a company seal, opening a corporate bank account, registering for taxes, and securing any necessary business licenses specific to the industry.

Reason for Investing in Vietnam

Vietnam has emerged as a Southeast Asian powerhouse, attracting significant foreign direct investment (FDI) due to its robust economic potential and strategic advantages. Here’s a comprehensive analysis of the key reasons why Vietnam is a compelling investment destination:

Strategic Location:

Vietnam boasts a prime location in Southeast Asia, bordering China and neighbouring major economies like Thailand and Vietnam. This proximity to key markets and established shipping routes creates a logistical advantage for import/export operations. Additionally, Vietnam benefits from access to the South China Sea, a crucial trade artery.

Flourishing Economy:

Vietnam consistently ranks among the fastest-growing economies globally. The World Bank forecasts a GDP growth of around 6.5% for the period 2020-2022, significantly exceeding the world average. This sustained economic expansion translates to a stable and predictable business environment for foreign investors.

Favorable Demographics:

Vietnam enjoys a young and growing population with a rising middle class. This demographic dividend presents a vast pool of talented and affordable labor, making Vietnam a competitive manufacturing hub. Moreover, the government invests heavily in education and skills training, ensuring a future-ready workforce.

Open and Streamlined Business Environment:

Vietnam has undertaken significant reforms to simplify foreign investment procedures. The government actively encourages FDI through tax incentives, streamlined business registration processes, and the establishment of numerous industrial zones offering world-class infrastructure and support services.

Stable Political Environment:

Vietnam benefits from a politically stable environment with a clear focus on economic development. This stability fosters long-term planning and reduces investment risks for foreign companies.

Trade Agreements and Integration:

Vietnam actively participates in numerous free trade agreements (FTAs) with major economies like the US, EU, and Japan. These FTAs grant preferential tariffs and streamlined customs procedures, making Vietnamese exports highly competitive in the global marketplace.

Competitive Labor Costs:

While labor costs are gradually rising, Vietnam still offers significant advantages compared to regional competitors. This cost competitiveness, coupled with a skilled workforce, makes Vietnam an attractive location for manufacturing and labor-intensive industries. A competitive minimum wage of about $42 a month.

Developing Infrastructure:

The Vietnamese government is heavily investing in infrastructure development, including transportation networks, power grids, and communication systems. This improved infrastructure enhances logistical efficiency and creates a more attractive business environment.

Growing Consumer Market:

Vietnam’s burgeoning middle class boasts rising disposable income, creating a significant domestic market for consumer goods and services. This presents vast opportunities for foreign investors seeking to tap into a growing consumer base.

Diversifying Investment Landscape:

Beyond traditional manufacturing, Vietnam offers promising opportunities in sectors like renewable energy, technology, tourism, and agriculture. This diversification allows investors to explore a wider range of investment options suited to their specific risk profiles and growth objectives.

Conclusion:

Vietnam’s compelling combination of a strategic location, burgeoning economy, favourable demographics, and a business-friendly environment makes it a premier investment destination in Southeast Asia. With its continued economic reforms and focus on infrastructure development, Vietnam offers a stable and promising market for investors seeking long-term growth and success.

Investment Opportunities

Vietnam has emerged as a leading destination for foreign direct investment (FDI) in Southeast Asia, boasting a stable and growing economy. Here’s a comprehensive overview of investment opportunities in Vietnam:

Attractive Investment Climate:

Economic Growth: Vietnam enjoys a strong and consistent GDP growth rate, making it an attractive market for long-term investors.
Free Trade Agreements: Vietnam benefits from numerous free trade agreements, offering investors preferential tariffs and access to a wider market.
Favorable Government Policies: The Vietnamese government actively encourages FDI through investment incentives and streamlined business regulations.
Young and Growing Workforce: Vietnam boasts a young and educated population, providing a readily available talent pool.

Promising Sectors:

Manufacturing: Vietnam is a global manufacturing hub, particularly for electronics, textiles, and furniture. Investors can capitalize on the country’s well-developed infrastructure and skilled labor force.
Technology: The digital economy is booming in Vietnam, with significant growth potential in e-commerce, fintech, and online gaming.
Consumer Goods: Vietnam’s rising middle class presents a growing demand for high-quality consumer goods, including food and beverage, healthcare products, and education.
Infrastructure: The government is investing heavily in infrastructure development, creating opportunities for investment in transportation, logistics, and renewable energy.
Tourism: Vietnam’s natural beauty and cultural heritage make it a popular tourist destination. Investments in hospitality, travel services, and leisure facilities are promising.

Vietnamese Mega Projects

Infrastructure: A major emphasis lies on developing modern infrastructure. This includes projects like:

- Long Thanh International Airport is an international airport under construction in Long Thành district, Đồng Nai province, Vietnam, approximately 40 kilometers (25 mi) east of Ho Chi Minh City. This total project cost is $16 billion USD (estimated). Long Thanh International Airport is a critical infrastructure project for Vietnam. The existing Tan Son Nhat International Airport in Ho Chi Minh City is nearing capacity, and Long Thanh is being built to alleviate congestion and meet the growing demand for air travel in Vietnam. The Vietnamese government approved the construction of Long Thanh International Airport in January 2021. Construction began the following day and is progressing well. The first phase of the airport is scheduled to be completed in 2025. The completed first phase will include a 4,000-meter runway, taxiways, and aprons. The Long Thanh International Airport project is designed to be built in three phases. The second phase will see the development of a second runway and the expansion of the passenger terminal to increase capacity to 50 million passengers and 1.5 million tons of cargo per year. The final phase will see the development of additional runways and facilities to reach the ultimate designed capacity of over 100 million passengers annually. The airport will be accessible via several major highways, including National Highway 51, the Ho Chi Minh City-Long Thanh-Dau Giay Expressway, and the Bien Hoa-Vung Tau Expressway (under construction).
- North-South Expressway Expansion: This extensive project aims to improve connectivity between major cities, facilitating trade and logistics.
- Urban Metro Lines: Several cities, including Hanoi and Ho Chi Minh City, are witnessing the construction of metro lines to address traffic congestion and promote sustainable transportation.

Manufacturing: Vietnam’s cost-effectiveness continues to attract major foreign investments in manufacturing. Here are some notable examples:

- LEGO Factory: The Lego Group is building a brand new $1 billion factory in Vietnam, set to be their sixth factory globally and the second in Asia. Located in Binh Duong Province, near Ho Chi Minh City, the factory is planned to be Lego’s first carbon-neutral facility and will utilize solar energy generation. Construction began in late 2022 and is expected to be completed in 2024, bringing over 4,000 jobs to the area. This significant investment highlights Lego’s commitment to growth in the Asia-Pacific region while emphasizing sustainable practices in their manufacturing process.
- Samsung Expansion: Samsung has seen significant growth in Vietnam, transforming from a manufacturing base to a strategic hub for the company. Their investment has surpassed $20 billion, with a recent $3.3 billion injection planned. This expansion goes beyond factories. Samsung opened a major R&D centre in Hanoi in December 2022, signifying a commitment to Vietnamese innovation in software, smart devices, and network technology. This focus on R&D alongside manufacturing places Vietnam at the centre of Samsung’s global strategy. The company plays a major role in Vietnam’s economy, contributing over $65 billion in exports in 2022 alone. Samsung’s presence has also attracted a network of satellite manufacturers, further solidifying Vietnam’s position as a key player in the global tech industry.
- BYD Expansions is undergoing a significant expansion in Vietnam. This multi-pronged approach involves establishing a car parts production facility, potentially manufacturing EVs directly in Vietnam, and fostering a local supply chain. The car parts plant, exceeding $250 million in investment, will supply components to an assembly plant in Thailand. EV production in Vietnam would target the local market and for export throughout Southeast Asia. BYD’s expansion leverages Vietnam’s promising EV market growth and strategic location within Southeast Asia. This strategic move positions BYD to become a key player in the region’s burgeoning electric vehicle industry.
- Amkor Technology, a major player in semiconductor packaging and testing, is undergoing a significant expansion in Vietnam. They plan to invest $1.6 billion by 2035 to build a cutting-edge facility in Bac Ninh province, close to a Samsung electronics factory. This “smart factory” will be one of Amkor’s largest globally, focusing on Advanced System in Package (SiP) assembly and testing for leading electronics and semiconductor manufacturers. The first phase is expected to be operational by late 2023 and will serve as a strategic move for Amkor, geographically diversifying their production and meeting the growing demand for SiP solutions. This expansion reflects Vietnam’s growing importance in the global electronics industry.

Other Sectors: Mega-projects extend beyond infrastructure and manufacturing. Examples include:

- Vinamilk-Sojitz Beef Processing Complex, a joint venture between Vietnam’s largest dairy company, Vinamilk, and Japan’s Sojitz Corporation, is a massive project set to become one of Vietnam’s biggest cattle farms and beef processing facilities. With a total investment of $500 million, the complex will be located on a 75-hectare site in Tam Dao district, Vinh Phuc province, bordering Hanoi. Scheduled to begin operations in June 2024, the project will encompass the entire beef production cycle, from breeding cattle to slaughtering and processing the final product. The farm will have a maximum breeding capacity of 10,000 heads of cattle, while the slaughterhouse can process approximately 30,000 cattle per year. This will translate to an annual output of 10,000 tons of chilled beef products, aiming to supply both the Vietnamese market and potential exports. This complex is expected to significantly contribute to Vietnam’s growing livestock industry.
- Sunshine Empire Project is a multi-functional complex aiming to become a prominent commercial and financial center in Hanoi, Vietnam. This ambitious project encompasses five towers featuring a mix of high-end retail space, financial institutions, office areas, and a luxurious hotel. The crown jewel is a 68-story, six-star hotel managed by the internationally acclaimed Accor Group. Sunshine Empire aspires to be a one-stop destination for luxury, boasting high-end shops, restaurants, and entertainment venues alongside modern amenities like gyms, spas, and swimming pools. Strategically located within the Nam Thang Long urban area at the convergence of major roads, the project offers excellent connectivity throughout Hanoi. Once completed, Sunshine Empire is poised to be a landmark development, transforming Hanoi’s Tay Ho district into a thriving hub for business and leisure activities.

Immigration

Vietnam offers a welcoming environment for foreign talent and investment. The immigration process caters to both foreign employees and investors, with specific visa and work permit requirements for each category. Here’s a breakdown of the key points:

For Foreign Employees:

Work Permit: Mandatory for most foreign employees. Sponsoring company in Vietnam must initiate the application process.
Eligibility: Typically requires a relevant bachelor’s degree or higher and documented work experience aligned with the offered position.
Validity: Work permits are issued for the term of employment in Vietnam, with a maximum of 24 months initially. Extensions are possible for another 24 months.
Temporary Residence Card (TRC): Available to holders of work permits valid for one year or more. Allows multiple entries and exits within the validity period.

For Foreign Investors:

Investor Visa: Required for foreign individuals investing in Vietnamese enterprises. Three visa categories exist based on investment amount:
- DT1 Visa: Minimum investment of VND 100 billion (approx. US$4.3 million) in government-backed industries and locations. Offers longest validity (up to 10 years).
- DT2 Visa: Investment between VND 50 billion and VND 100 billion (approx. US$2.1 million – US$4.3 million) with similar industry/location requirements as DT1. Valid for up to three years.
- DT3 Visa: Investment between VND 3 billion and VND 50 billion (approx. US$128,800 – US$2.1 million). Offers shortest validity (up to three years).
Temporary Residence Card (TRC): Available to holders of investor visas with validity of one year or more. Similar benefits to TRC for foreign employees.

Tax for Foreign Investor

Vietnam offers a welcoming environment for foreign businesses and individuals. However, understanding the tax landscape is crucial for both foreign employees and investors. Here’s a breakdown of the key points:

Foreign Employees:

Tax Residency: Vietnam determines tax liability based on residency. If you spend 183 days or more in Vietnam within a 12-month period, you’re considered a tax resident and subject to personal income tax (PIT) on your worldwide income.
Personal Income Tax (PIT): Tax residents pay progressive PIT rates ranging from 5% to 35% on their total income.
Non-Resident Tax: Foreign employees who are not tax residents pay a flat rate of 20% on income sourced from Vietnam, typically salary earned for work performed in the country.
Social Insurance: Since 2018, companies can opt to make social security contributions for foreign employees, granting them access to Vietnamese social benefits.

Foreign Investors:

Corporate Income Tax (CIT): The standard CIT rate for all businesses, foreign and domestic, is 20% on profits earned in Vietnam.
Tax Incentives: Vietnam offers attractive tax incentives for foreign investors in specific industries or locations. These can include reduced CIT rates (as low as 10%) and tax holidays.
Double Taxation Agreements: Vietnam has signed double taxation agreements (DTAs) with many countries. These DTAs prevent double taxation on income earned in both Vietnam and the investor’s home country.

Important Resources:

For a deeper understanding of Vietnamese tax regulations for foreign entities and individuals, it’s recommended to consult the following resources:

General Department of Taxation of Vietnam: https://www.gdt.gov.vn/ (Vietnamese language, but offers an English guide)