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Business Evironment

BUSINESS ENVIRONMENT

          Vietnam has the fastest economic growth in South-East Asia and is a good place to do business. The economy has been growing at more than 6% for the past several years, a trend that is expected to continue. Development of bi-lateral trade agreement with many countries has contributed to solid export growth, which is expected to continue due to planned AFTA membership and WTO- accession. The Law on Investment Encouragement has been amended and other legal documents such as Decree on Foreign Business Associations has been issued to create more favorable business condition for FDI and other foreign partners.
          The government of Vietnam has initiated many policies encouraging the development of the fruit industry such as: 

1.     Exportation of fruits and vegetables for 10 years (2001-2010)" program, which aims to achieve USD one billion by 2010 in exports. The program includes projects in seeds (with a component of government support to develop seeds), post-harvest technology, plant protection, trade promotion and financial support through an SME fund. 

 2.     Seedling production for 10 years (2001-2010)" aims to develop high quality fruit varieties for export, crossbreeding of the best domestic fruit seeds and importing appropriate foreign seeds for Vietnam`s climate and soil conditions. 

3.     Plant restructuring and diversification to reduce the area of low-productivity rice and transfer to high-value plants, which are mostly fruit. 

4.     Policy of farms to create specialized fruit zones in new areas, possibly the far Southeast, Central Highlands, and Northern Mountains. 

5.     Policy of promoting cooperatives, including specialized fruit cooperatives. 

6.     Policy of national trade promotion, focusing on important products, including fresh and processed fruits and vegetables.
          The following milestones will have a major impact on the Vietnamese fruit industry`s goal of integrating into international markets in the near future: 

1. Implementation of the Vietnam, USA bi-lateral trade agreement, ratified in 2001, which will open new opportunities in the US market. 

2. Implementation of AFTA (within ASEAN, between ASEAN and China, ASEAN and Japan, Korea, ASEAN and EU) to reduce import taxes in the coming years. 

3. Vietnam`s commitment to join the WTO in 2005.
          The most important objective of Vinafruit is to promote and develop the Vietnamese fruit industry to be among the most successful industries in Vietnam, as well as positioning it among world leaders in the international fruit market.
          Vietnam is also considered one of the safest countries in the world, and is a beautiful place to do business