Vietnam, one of the fastest developing countries in the world, offers opportunities in trade.
Vietnam is among the fastest developing countries in the world, with a growth rate of 14 percent in industrial production in recent years. Commercial relations with Vietnam, an attractive country for Turkey, which continues its search for a new market are also improving. Exports and imports are made between the two countries in many sectors, from electrical devices to machinery and parts, iron and steel products to auto spare parts, phones to unknitted clothing items.
Vietnam, which has attracted attention with its rich natural resources, rapid growth in industrial production in recent years and attractive investment opportunities, is a candidate to be an important market for Turkey. Vietnam has made significant strides, especially in its postwar economy and integration into the international system, and in 2007, with its becoming a member of the World Trade Organization (WTO), the foreign trade system will become more liberalized and enter foreign markets the way to facilitate its opportunities and thus increase its exports. With these developments, the country becomes more attractive in terms of direct foreign capital investments, especially if SMEs are weak and non-competitive
POLITICAL STABILITY AND HIGH ECONOMIC GROWTH BRING ADVANTAGE
Generally speaking, Vietnam has some advantages in terms of foreign foreign capital investments. The most important advantages are political stability, economic structure, greater social and economic security compared to other countries in the region, the high economic growth rate, and consequently, the country with a population of 85 million per capita falling national income… The ‘Vietnam Foreign Investment Agency’ (FIA), which is authorized for foreign investments in the country, works under the Vietnamese Ministry of Planning and Investment (MPI). MPI, the centrally competent institution on foreign investments. The FIA’s tasks are to determine, encourage, monitor and oversee Vietnam’s policies on foreign investments in general.
structures also offer new opportunities for cooperation. On the other hand, Vietnam’ economic growth in recent years is at an average level of 6-7 percent, and the development of industrial production is 13-14 percent, causing the country to become one of the fastest growing economies in the world.
The oil reserves detected in Vietnam, which are also rich in minerals and minerals, are approximately
It’s at 4.7 billion barrels. It is also known that Vietnam has rich natural gas and coal deposits in the Red River Delta Region. The natural gas reserves detected here are estimated to be approximately 185 billion cubic meters, coal reserves 3.8 billion tons and unprocessed bauxite reserves are estimated to be 8 billion tons. The country ranks third in the world with its unprocessed bauxite reserves.
Attracts foreign investors
With Vietnam becoming a full member of the WTO, it undertook international commitments in many areas, including trade in goods and services, tariffs and customs operations, investment measures (TRIMS), protection of intellectual property rights (TRIPS). In this way, economic freedoms in the country increased, more transparency was achieved in exports of goods and services, foreign trade policy practices and legal regulations. In this respect, the country has become more attractive, especially since 2007, due to its many advantages for foreign investors. Vietnam’s vibrant economy is constantly attracting foreign investors. Order in political life and cheap labor are among other important factors. Vietnam is seen as an alternative to China by many investors who want to diversify their investments. The development of technology, which is expected to provide foreign investments in the country, has not yet reached the desired levels. In recent years, the share of foreign-owned companies in the country’s total output is increasing. Foreign investments heading to the country come from different geographies, but the weight of the Asia and Australia region stands out.
Tax and tariffs are discounted
The Vietnamese government has designed some special zones for investors to receive more privileged services and to benefit from various tax and tariff reductions. Domestic and foreign companies operating in these regions, along with various tax advantages, produce the products they produce
does not pay taxes for the import of raw materials. Vietnam is also eliminating non-tariff barriers under the WTO agreement. Vietnam also has 194 industrial and free trade zones. Industrial and free trade zones are preferred by foreign investors due to their tax and tariff exemptions as well as infrastructure facilities. These areas have warehouses serving transportation, distribution and storage. However, for customs and insurance operations, foreign companies need to apply to regional customs offices.
Another important advantage of the country is that it has a young and cheap workforce. About 75 percent of the population is under 40 and the literacy rate is quite high. The number of work jobs in the country increases by an average of 1,600,000 people annually. High inflation in recent years brings with it the demand for a steady increase in wages. Vietnam’s broad fiscal deficit is expected to continue in 2013-2017.
There is stability in imported and exported product diversity
Diplomatic relations between Turkey and Vietnam were established in 1978, while the embassies of the two countries are located in Hanoi and Ankara. Bilateral relations between Turkey and Vietnam are improving in all areas, especially the economy and trade. Trade volume between the two countries was below $100 million in the early 2000s, reaching about $2.2 billion in 2014. In 2014, turkey imported from Vietnam, electrical devices, boilers, machine devices and parts, weaving artificial and synthetic fibers, shoes, synthetic and artificial incurest fibers, cotton and unknitted clothing items pre- ranked in the ranks. Among the products exported by Turkey to Vietnam, oil oils (excluding crude oils) take the first place. Iron and steel products, telephone devices, automotive and auto spare parts are among those exported, while the diversity of products in sales of both countries is seen to be a stable structure.
Make agreements in writing
As in every country, in Vietnam, local traditions and ways of doing business affect commercial activities. In this respect, the fact that businessmen have knowledge of their cultural characteristics and in particular the way they do business makes it easier for them to do business activities. Vietnamese local businesspeople are very interested in face-to-face interviews. In addition, at the end of the business negotiations, it is a way to make the oral consensus in writing and recording.