Vietnam's economy has rapidly grown after signed the TTP commitments and the effect of the industrial revolution 4.0 is the main reason makes this country attracts many international investors in recent years. Besides that, with the expansion of its considerable middle class make this country become the best place to invest in. The rise in demands in infrastructure, healthcare, and agriculture is also generating the Vietnam investment opportunities that appeal directly to foreign investors.
1. About Vietnam investment opportunities
After joining APEC in 1998 and WTO in 2007, Viet Nam has been performing its commitments to international economic integration with vigor. Vietnam opened the door to cross-border trade and investment over the world.
In 2018, within ASEAN, Vietnam is implementing its commitments to cut 98% of tariff lines. In terms of trading with the Republic of Korea, Japan, and Australia, Vietnam is reducing taxes for products on the sensitive list. By proactively realizing those commitments and pledging to create favorable conditions for foreign enterprises, Vietnam is also reaffirming its important geopolitical status in South East Asia and the Asia-Pacific region. Besides that, Vietnam also possesses a convenient geographical location that can be proven to remain an attractive investment destination in the region.
2. Forms of Investment for Foreign
Foreign investors can invest in Vietnam in several ways, such as:
Establishing a new enterprise
Acquiring or investing in an existing enterprise
Invest in business in Vietnam by setting up a branch or representative office or using contractual arrangements.
3. Top 5 industries investment opportunities that foreigners should consider
3.1. Construction and Building
One of the best investment industry in Vietnam for foreigners is Construction materials. You can invest in a business in Vietnam by open business to sell construction and building materials, like cement, roofing materials or home fitting materials. Eventually, foreign investors can start a business in the construction industry like painting services, plumbing, home decoration & repairs, home renovation, etc. Belong that the demand for building and repairing houses in Vietnam is very high that can make good Vietnam investment opportunities for investors.
3.2. Beauty and cosmetics
According to Mintel’s market research, the beauty and cosmetics retail market in Vietnam has been estimated to be worth US$1.7 billion annually, a figure that will likely reach US$2.35 billion by 2018.
Although the Vietnam market is relatively small, and the growth in most beauty and body care categories is expected to continue to expand over the next decade as the country moves into the middle-income ranks. This is really a great opportunity for foreign investors who looking at the association in this business. Foreign investors can take advantage of natural aromas to produce and sell cosmetics in the Vietnamese market because of the demand for beauty is increasing.
There’s the truth that any investment industry in Vietnam in the food industry can make sales as long as the business owner employs the right strategy to promote and market the business. Vietnam's environmental conditions are well suited to trees or crops. Foreign investors can use natural resources such as land, water, climate weather... to create a farm, produce agricultural products. Investors can always find an agricultural product that can process sales and export.
3.4. Real Estate
Do not have to join in any investment group Vietnam, foreign investors can easily invest in Vietnam by buying properties or real estate in Vietnam. This investment industry never makes you regret it. You can also buy old properties to renovate and resell or build office blocks for rent or small housing units for rent as well. However, invest in real estate is a little expensive as you need a lot of capital to invest in real estate.
3.5. Car business
The car business industry in Vietnam is attracting a lot of foreign investors in the world. People need to travel and need high security. There is also demand for warranty and maintenance facilities as well, also with the requirement for workshops, equipment, tools, and sanitation, in accordance with the law.
4. Tips to invest in a business in Vietnam
In determining the structure of its investment in Vietnam, a foreign investor will need to consider factors such as:
The scope and nature of the proposed investment and business activities, including with the related licensing requirements;
Are there any foreign ownership restrictions in the relevant investment sector?
Is it necessary or desirable to involve a local partner?
The tax implications of the available structures.
5. The bottom line
This guide is dedicated to those who want to invest in a business in Vietnam, especially foreign investors and businessmen who seek business partners and opportunities in this country. As a result, we hope you can find your needed information. Navigos Group, a leading recruitment company in Vietnam offers foreign investors with hiring and senior recruitment services. In case you need help with finding the best executive in investment, please contact the Navigos Search consultant team, we always here to support you.