Vietnam’s rising appeal to multinational corporations (MNCs) is fueled by competitive costs and policies that favor foreign direct investment (FDI), according to a recent report.
Key factors include Vietnam’s strategic economic agreements, such as the EU-Vietnam Free Trade Agreement (EUVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which have significantly boosted foreign investment.
The report highlights Vietnam’s competitive tax environment as a major draw for investors. With a corporate income tax rate of 20%, Vietnam stands out among other nations. Additionally, certain enterprises benefit from extended tax exemptions and reductions, further lowering their effective tax rates, as noted by HSBC’s Global Research Department.
These factors collectively position Vietnam as an increasingly attractive destination for global corporations seeking a favorable and supportive investment climate.
