Most nations would look at the current state of Vietnam and marvel at their ability to survive economic hardships and maintain their standing as strong trading partners in the region. In fact, many economists believe that the growth enjoyed by Vietnam over the past 20 years is largely due to the country having an open economy. This is a distinct contrast to most Asian countries which heavily curtail free-market thinking and inhibit trade liberalization. The policies and laws that govern Vietnam’s foreign trade are anything but tight, and this has been the driving factor behind Vietnam’s success as a leading nation in terms of trading and investment in the international arena.
Most nations depend on exporting a large volume of goods to other nations, primarily in order to meet their economic obligations. Unfortunately, most Asian nations suffer from chronic deficits, which make it impossible for them to meet their commitments. While this situation may seem frustrating, it serves as a tremendous opportunity for countries like Vietnam, Thailand, Malaysia, and Singapore – all of whom are regularly trading with each other – to develop economically and become more competitive in the global market. They do this by pursuing economic growth by attracting investment and knowledge from other nations. Without such policies, it is unlikely any of these nations will have any chance of competing with other developed nations Vietnam Trading Partners.
However, while most nations in the region welcome free trade, Vietnam is not one of them. As a historical and geographical entity, Vietnam is designed to function solely on the basis of bilateral trade agreements. Because it lacks any significant trading partners outside its immediate proximity, Vietnam’s growth has relied largely on exporting products and providing services to other nations. This policy, combined with the fact that Vietnam relies on Cold War strategies to remain near its neighbors, makes it incredibly difficult to come to terms with. Even though Vietnam has a great number of trade relationships with countries like the UK and the US, it has remained hesitant to open up its economy to foreign investment and has instead, focused on maintaining its closed system of trade.
One of the reasons why Vietnam has remained so closed off is that it is very difficult for non-Vietnamese speakers to understand the economics and cultural practices of Vietnam. In order to open up its economy, it has been necessary for Vietnam to rely on transnational corporations (chiefly from China) to facilitate trade. This has resulted in the gradual liberalization of Vietnam’s economy, but it has also resulted in a lack of understanding of the country’s overall structure and the intricacies of the markets in Vietnam.
To combat these difficulties, a group of private entrepreneurs and international businesses have begun to venture into Vietnam offering local and international companies an alternative option to invest in Vietnam. Vietnam is a rapidly developing nation, and its ability to attract investment and create a conducive environment for economic growth is limited. By opening its economy to foreign companies and allowing them access to its highly skilled labor force, Vietnam can become more self-sufficient and begin to implement measures aimed at promoting growth and prosperity within its own borders. Many of these entrepreneurs and business owners see Vietnam as an opportunity to improve the lives of ordinary citizens while at the same time help sustain a long term and mutually beneficial relationship with other nations.
Because of Vietnam’s history and the fact that so many foreign investors are attracted to it, Vietnam’s government is eager to promote economic development in the country. The government has taken advantage of the foreign direct investment it receives to support businesses in Vietnam. There are a number of programs available to foreign businesses seeking investments and there are numerous organizations and business mentors available to help foreign companies to establish a footing in this emerging nation. Vietnam is home to one of the most diverse groups of people in all of Asia, making it an ideal place for foreign direct investment. With the right skills and a plan, foreign companies have an excellent chance of success in Vietnam.