According to HSBC, Vietnam has made significant progress in terms of setting up various economic agreements with major trading partners, such as the EU-Vietnam FTA, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Part of the favorable investment environment can be explained by proactive support provided by the Vietnamese government via the tax system, it said, stressing that Vietnam, therefore, has a competitive position relative to its peers with a 20% statutory corporate income tax rate. However, according to details provided by think tanks, some of the advantages that Vietnam has touted, may now be challenged by other players, which are part of the global value chain. The bank suggested Vietnam’s manufacturing ecosystem evolve to the next stage, in order to address these challenges./.