people

Vietnam is the third largest market in Southeast Asia and one of the fastest-growing economies in the world. With over 95 million residents, Vietnam ranks as the 14th largest population in the world. By 2030, the population will grow to 105 million, as forecasted by World meters. Unlike in China where the population is ageing rapidly, the demographics of Vietnam is young.

According to World meters, the median age in Vietnam is 30.8 years in contrast to 37.3 years in China. Nielsen has also estimated that 60% of Vietnamese are under the age of 35. Despite the yearly increase of minimum wage, Vietnam is still a country with low labor costs. Wages in Vietnam remain less than half of what the wages are in China. Vietnam is the 2rd biggest furniture exporter of Asia after China with 8,8billion dollar in 2018.Located in the center of ASEAN, Vietnam has a strategic location. Its long coastline, direct access to the South China Sea and proximity to the world’s main shipping routes give perfect conditions for trading.

• Member of ASEAN and ASEAN Free Trade Area (AFTA)

• Member of World Trade Organization (WTO)

• Bilateral Trade Agreement (BTA) with the US

• Free Trade Agreement with the European Union (comes into effect in 2018)

For many companies producing in Asia is of crucial strategic importance. To ensure a smooth export process maintaining high quality at low costs is for some firms a question of life or death. If as an expansion or replacement for China Exports, Vietnam and the other ASEAN nations play a key role in Sourcing in Asia. Our Team usually achieves 15 to 30 percent in savings for our customers! Furthermore, the search for reliable suppliers as well as decisions regarding the type of local presence demand a certain know-how of the Vietnamese market. The Apple Tree Team gladly supports you in defining a strategy and designing sourcing processes that will allow you to realize the highest possible potential for your company.