Viet Nam is the Southeast Asian country with the strongest growth forecasts for the region (estimated at +7.08% in 2022), and has a total population of almost 100 million inhabitants. Ranked as the world’s 21st largest exporting country, Viet Nam’s economy favors foreign investors and companies. Viet Nam is Canada’s largest trading partner among the members of ASEAN (Association of Southeast Asian Nations). A signatory to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Agreement, Viet Nam is also a manufacturing hub in Asia. In addition, Viet Nam is now considered a possible alternative or complement to China.
Indeed, the trade war between the United States and China is increasingly making Viet Nam more attractive. With a 25% tariff on products from China, Viet Nam is the Asian country that has been able to take advantage of the tensions between the two world powers. More and more companies are making the decision to source or relocate to Viet Nam and its booming manufacturing sector. In addition to offering a large quantity of skilled labor, Viet Nam remains a viable solution to problems encountered in Canada such as labor shortages and rising economic costs. In short, this economic hub in Asia offers a wide range of alternatives and is able to respond to the labor issues that Canadian companies in expansion must consider when thinking about beneficial solutions for their medium to long term international development.