Ho Chi Minh City has been awarded "Asia's Leading Business Travel Destination" at the 2024 World Travel Awards, beating renowned cities such as Singapore, Bangkok and even Beijing. This is the third year in a row that the Viet Namese city has won the title.
According to VN Express, Ho Chi Minh City was also named "Asia's Best Festival & Event Destination" for its modern infrastructure, which supports various major business events. With 16,542 hotel rooms ranging from three to five stars spread across 116 properties, the city has seen a 6% growth compared to last year.
The World Travel Awards, often referred to as the "Oscars of the travel industry," have been held since 1993 and winners are determined by a vote of travel professionals and the general public.
Viet Nam's Advantages as a Business Destination
The rising popularity of Ho Chi Minh City as a business travel destination reflects Viet Nam's growing position in the Asian economy and its increasing global prominence.
According to the Boston Consulting Group, Viet Nam has shown impressive economic performance in recent years, with consistently higher GDP growth compared to other ASEAN countries. Despite facing global economic challenges in 2012, Viet Nam has successfully maintained economic stability with solid growth and controlled inflation.
The country is also one of the most attractive destinations for foreign direct investment (FDI) in Southeast Asia, with an annual FDI growth rate of 6.4% between 2015 and 2022. Looking ahead, Viet Nam is expected to maintain its strong economic momentum and achieve the highest projected growth among the ASEAN-6 countries.
With the global shift in supply chains, particularly in the manufacturing sector, Viet Nam has the potential to outperform many regional competitors in terms of exports. In addition, the country is expected to experience significant growth in its middle and affluent classes over the next decade, particularly in emerging cities.
Government Support and Policies
The Viet Namese government has implemented administrative reforms and provided legal and tax incentives to create an attractive investment climate, according to the Boston Consulting Group. The country offers a range of tax incentives for key sectors such as high-tech, large-scale manufacturing, and social projects.
In the high-tech sector, Viet Nam offers a corporate income tax (CIT) rate of 10% for 15 years, a 4-year CIT exemption, and a 50% reduction in CIT payable for 9 years for projects in fields such as information technology, biotechnology, and others.
Large-scale manufacturing projects with a minimum investment of VND6,000 billion will receive similar incentives. In addition, social projects in the fields of education, health and environment benefit from a 10% CIT rate for the entire project period, along with a 4-year CIT exemption and a 50% reduction for 5 years.
