Over the last 30 years, Vietnam has shown impressive development. The country transformed from one of the world’s poorest nations into a low-income nation within three decades. Today, it is among the most attractive investment destinations in the world as there are many investment opportunities Vietnam.
Why Invest in Vietnam?
Firstly, stable politics. Some countries in the region are vulnerable to political and economic instability, but not Vietnam. In fact, Vietnam is among the most politically stable counties in the region, making it an excellent place for capital investment.
After four decades of peace and development, the country has become one of the most reliable investment destinations for many countries.
Secondly, competitive labor costs. Vietnam has one of the most competitive labor costs in the region. In 2020, its minimum wages range between USD 132 and USD 190 per month. Not only that, but Vietnam’s labor force is also young, well-qualified, and abundant.
Thirdly, integration into the world economy. Vietnam has broadly and deeply integrated into the world economy. This integration is achieved by continuously signing trade agreements with other countries as well as regions all over the world, either as bilateral or as a member of ASEAN.
These trade agreements provide Vietnam with access to new markets as well as make the trades and investment between Vietnam and other countries and regions easier and more profitable.
Investment Opportunities Vietnam: Three Sectors with the Greatest Potential for Foreign Investors
Textile and garment
Vietnam is one of the world’s leading exporters of textiles and garments. This sector contributes to approx. 16% of its GDP.
In 2019, the revenue earned from the textile and garment export rose to USD 39 billion, an increase of 8.3% from 2018. The main export destinations are the U.S., Japan, South Korea, and Europe.
The extensive free trade agreements that Vietnam has further extend its market reach. Moreover, in the first 11 months of 2019 alone, the textile and garment sector received no less than USD 1.5 billion in foreign investments.
2001, Vietnam ranked 47th electronics exporter in the world. In 2019, the country ranked 12th. The dramatic increase was due to the shifting of the supply chain from China into Southeast Asia.
In 2019, the main export destinations for electronics were the U.S., China, Japan, Hong Kong, and South Korea. The exported commodities include mobile phones, TVs, cameras, electronic integrated circuits, and electrical apparatus.
At the moment, the market size of the automobile industry in Vietnam is rather small. However, Vietnam’s automobiles sector was among the fastest-growing in the region. Vietnam plans to reach an annual production capacity of one million vehicles by 2030.
Market Research Vietnam
Although Vietnam offers so many opportunities for businesses to thrive, companies seeking to operate in the country should have insights into the ins and outs of the country’s market to thrive. For that, Vietnam market research will be needed.
Vietnam is a great place for investment. There are many investment opportunities Vietnam. The country offers political stability, competitive labor costs, and integration into the world economy. Vietnam’s most promising sectors for foreign investors are textiles and garments, electronics, and automobiles.