The Viet Nam City Rating Report 2018

An important question that investors, businesses and individuals are interested to know is: which cities and provinces in Vietnam offer the most suitable foundations for investment, business and individual successes? When talking about Vietnam, Ha Noi and Ho Chi Minh City emerges as the two major economic pillars where the largest companies and the most talented workforce are based, as well as they enjoy extensive international linkages in trade, investment and tourism. In fact, the two biggest cities contributed a total of 37% to national GDP, while 61 other provinces and cities contribute 63% to national GDP in 2017 . It is undeniable that large cities have competitive advantages over other small and regional provinces and cities. However, the big size comes with problems; chronic congestions in social services and infrastructure due to rapid population growth are becoming more serious in Ha Noi and Ho Chi Minh City in recent years, which significantly deteriorate the competitiveness of business environment and quality of life. Therefore, it is high time for businesses, investors and individuals to re-evaluate their location identification strategies based on solid evidence and reliable data, rather than relying on the guesswork. For example, factories can be set up in regional provinces, where there are skilled workers and supported services, lower labour costs, less traffic congestion, and more importantly, workers are happier. Investors and businesses may consider expanding the location searches beyond Ha Noi and Ho Chi Minh City to other provinces and cities where skilled workforce and supported services are available at cheaper costs. Individuals may consider staying in their cities and provinces or move to regional cities to study, live and work where opportunities are available and they still enjoy higher quality of life than in big cities. The expected outcomes will be more balanced growth between the two largest cities and the rest of Vietnam, where other provinces and cities will benefits from new investment and population growth-induced demand for goods and services; and Ha Noi and Ho Chi Minh City will benefit from reduced congestions in social services and infrastructure. Evidence-based business strategies increase the chance of success, unlock new opportunities and maximize long-term returns to investors and businesses. The Vietnam City Rating Report 2018 published by VietnamCityRating.com is the first attempt to systematically assess the key dimensions of 63 provincial and city economies in Vietnam, to help investors access to timely and relevant facts to make informed strategic decisions. The Vietnam City Rating Report 2018 also intends to be useful data source for foreigners who are planning to live and work in Vietnam, as well as for Vietnamese people who are considering moving to other provinces and cities for new opportunities. We believe that the scores and ratings presented in this report will provides investors and individuals clear views about the dynamism, strengths and weaknesses across provinces and cities, which will effectively guide their location identification strategy to invest, live and work in Vietnam. With all the excitement, we are pleased to launch the Vietnam City Rating Report 2018, an annual research publication by VietnamCityRating.com.