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Vietnam investment guide: what we have through the FDI and economic growth in 2019?

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Posted by Iris Data Driven Agency

8 months ago

Vietnam is an attractive destination for both foreign individual investors and businesses around the world. Besides, foreign investors who are interested in investing in the business in Vietnam now can easily find investment groups in Vietnam by online media platforms or by connecting with oversea consulting services. To bring the foreign investor a widen look about the investment environment in Vietnam, understand more about the FDI in Vietnam in recent years, as well as investment group Vietnam, let's find out clearly through Navigos Search today's article.

What we have through FDI and economic growth in 2019?

FDI focuses on the labor-intensive industries

According to the World Bank's analysis, FDI capital is concentrated in manufacturing, processing, labor-intensive, low-skill-required industries, which are seen as having weak connections with domestic enterprises. FDI focuses on industries that need a lot of labor force with low employment costs in Vietnam and abundant labor force, which attracts foreign businesses.

With over US $ 38 billion of FDI capital invested in 2019, Vietnam is among the top 3 largest FDI countries in the ASEAN region, maintaining the same level as the previous 2 years, with an average of about 3 billion USD per month.

Movement of mergers and acquisitions.

Recent official figures on the trend of FDI inflows indicate a shift from investing in new business and production facilities to investing in mergers and acquisitions (M&A) from 2017, is one of the investment guide Vietnam. M&A investments are expected to have a positive impact if new owners bring new technology to existing businesses. Research shows that foreign investment in M&A tends to lead to increased investment in development in acquired businesses, while domestic investment in M&A leads to a reduction in research and development spending.

What are the advantages of foreign businesses investing money in Vietnam?

In recent years, the business investment environment of Vietnam has been constantly improved and in line with international standards. In the context that Vietnam increasingly integrates into the world economy, it will increase the attractiveness and competitiveness of Vietnam in attracting foreign investment, especially of multinational corporations. 

Besides, there are many advantages to attract foreign businesses to invest in a business in Vietnam, some of which are:

  • Firstly, a stable political and security situation is an important condition for foreign businesses to decide to lay the foundation for long-term investment activities in Vietnam.

  • Moreover, Vietnam has a favorable geographical position to trade with the world as both a regional connection center and a gateway to penetrate economies in the western part of the Indochina Peninsula.

  • Third, Vietnam has the advantage of an abundant and qualified labor force with very competitive employment costs in Vietnam. Foreign businesses often place processing factories in Vietnam because of this abundant labor force and low labor costs.

Things that Vietnamese businesses need to equip to attract foreign investment.

Professional and talented staff is an important foundation to attract foreign investment.

Human resources is a solid foundation contributing to business development and development for businesses. Moreover, human resources contribute directly to the profits of businesses, this is one of the important factors attracting foreign investment. Therefore, businesses need to own good and professional personnel to their advantage and especially, foreign personnel for middle and senior positions will be very helpful for businesses.

Management style globalization.

International style management not only helps businesses easily manage foreign personnel but also helps businesses to impress investors. According to statistics, Vietnam is one of the three largest FDI-investing countries in the ASEAN region and is an attractive destination for many foreign workers. Therefore, the management process reform will greatly support businesses to attract investors and high-level foreign candidates.

Conclusion

Vietnamese businesses have many opportunities to attract foreign investment as well as opportunities to reach the international market. Let's build a solid human resource foundation to support businesses on the path of development. In case, the company has any difficulties in building human resources, finding senior personnel or in need of human resource solutions,  please leave Navigos Search your request by filling out the form on the contact page or visiting us on the 20th floor, e.town Central Tower, 11 Doan Van Bo, Ward 12, District 4, Ho Chi Minh.