Vietnam’s economic development

Vietnam’s GDP growth rate in the first six months of the year was around 3.72% (General Statistical Office), which is presently relatively low. As a result, in the final six months of the year, Vietnam must enhance its economic development through a variety of initiatives, including:

Boost in exports: Due to increasing demand from key markets such as the United States, China, Europe, and other Asian nations, Vietnam’s commodity exports have continued to expand rapidly in the last six months of the year. Participation in free trade agreements, in particular, aims to open up new markets for Vietnamese products.

Foreign Direct Investment (FDI): With numerous big projects and partners, Vietnam continues to attract FDI. More firms pouring cash into Vietnam or increasing their investment will also generate more favorable economic growth in the coming six months.

Domestic consumption: Due to rising income levels and the expansion of the service and retail sectors, domestic consumption demand has remained consistent over this time. This contributes to the maintenance of a balance between local consumption and export demands, as well as increasing the leverage for long-term economic development.

Improving the business climate: In order to establish ideal conditions for businesses to operate and invest, the Vietnamese government has continually promoted administrative procedural reform and improved the business environment. This enhances competitiveness and attracts new investment.

Support from the government policy: To assure economic growth in the current setting, the Vietnamese government has launched several economic programs and packages, in addition to ensuring a stable policy environment. Specifically:

• Since the beginning of the year, the State Bank has reduced interest rates four times, and interest rates on premises in Market 1 have decreased four times.
• Reduce the VAT rate to 8%.
• Rising governmental investment disbursement.

Diversified rental industry real estate market: Many rental industry real estate projects will be constructed and released into the market. Examples include the GNP Nam Dinh Vu project in Hai Phong and the GNP Dong Van 3 project in Ha Nam by Gaw NP Industrial, a reputable industrial real estate developer in Vietnam.

Both projects are now heavily funded, which brings several benefits to the leasing industry:

• Excellent position, close to major industrial zones.
• Inner column-free design for maximum usage area efficiency.
• Comply with EGDE criteria for energy savings and sustainable development.
• Infrastructure in its entirety: Internal roads that are clear, several entrances, garages, canteens, sewage treatment systems, and comprehensive fire protection are all required.
• With a trained security crew and an automated surveillance camera 24/7.

Both developments, in particular, are located in local and government tax support zones that include: 

• Tax exemption for the first four years, a 50% decrease for the next nine years, and a business tax rate of just 10% for the first ten years for enterprises renting GNP Nam Dinh Vu industrial real estate.
• Tax exemption for the first two years, followed by a 50% discount for the next four years for businesses renting GNP Dong Van 3 industrial real estate.

If domestic or international firms need to rent industrial real estate, please call the Hotline +84 789 75 77 88 right away for thorough guidance.

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