Vietnam is one of the most attractive countries for investments among the world’s emerging markets. Since the economic reform around ten years ago, Vietnam has spectacularly managed to generate a GDP growth of average 8% annually. Vietnam has population of 84 million, of which 57% is under the age of 25. There are 64 cities and provinces, of which the three key cities in North, Central, and South are: Ha Noi, Da Nang and Ho Chi Minh City. These three cities account for 20% of the population. Vietnam has a very low percentage of the population living in urban areas. However, with the recent development, the country is experiencing one of the most rapid urbanization growth in the region. As an example, more than 200,000 people move to HCM City each year alone. The participants in Vietnam’s economy can be categorized into the State, non-State, and foreign investment sectors. The overall growth in Vietnam’s GDP has been largely attributable to non-state sector, which contributed 44.6% to the total change in GDP. In the same period, the state and foreign investment sectors contributed 40.5% and 15.0% to GDP growth respectively.

The key macro indicators below highlight the country’s growth potential:

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• High export growth: 22.5% in 2006, 21.7% in 2007 and expected 17% in 2008 and forecasted 13% in 2009
• High FDI: in 2008 the committed capital was US$ 64BN and actual disbursed capital was US$ 11.4BN, and 43% increase over 2007
• Competitive average wage: US$ 45 per month vs. China with US$ 124
• Promising retail market: 20+% annual growth, rank as 3rd best retail in the world
• Financial sector still in the booming phase
• Young population, with 57% of the population under 25
• Since Vietnam’ WTO membership on January 2007, the country has experienced significant increase in export and record high FDI commitments