Vietnam has created fast growth, and the nation’s economy has overtaken some Southeast Asian nations in many years. As for investing in Vietnam, from the 90s to now, Vietnam has risen in substantial international investments’ inflow, with GPD crossing 8% every year. Thus, this year is the ideal time for you to invest in Vietnam, and let’s follow this post for further precious information below.
1. Why is this an ideal time to invest in Vietnam?
Vietnam provides advantageous circumstances for foreign investors for a variety of reasons, including its strategic position, a large labor pool with affordable labor costs, and a generally welcoming atmosphere for FDI, to mention a few. But because of the pandemic breakout in the summer of 2021, which resulted in severe limitations and supply chain disruptions, there may still be doubts among overseas investors about whether 2022 is the ideal year for risky investment.
We believe that now is the perfect moment to invest.
With a clear vision for the future and the reform of many key laws that assist improve its business climate, together with the free trade network with the EU, the UK, and the RCEP members, Vietnam has laid the groundwork for a robust recovery in 2022. Despite the anticipated difficulties the Covid-19 epidemic might present, the administration expects GDP to expand by 6-6.5 percent in 2022. to assist international companies in capturing new possibilities in Vietnam and better understanding the country's main trends regarding FDI.
2. Main reasons for you to invest in Vietnam in 2023
2.1 Population growth
Vietnam is the 15th biggest nation by population, with nearly 90 million residents. By 2030, people will increase to 106 million citizens. While the nation’s population is developing, it shows that producing goods’ needs can arise.
Besides, since the labor cost has been rising around mainland China considerably, the significant population thro
ughout Vietnam offers an affordable solution and a better-skilled workforce.
Vietnam's middle class is expanding more quickly than any other country in Southeast Asia, along with the country's expanding population. As a result, this will support consumerism making Vietnam a profitable target for foreign investors to invest in Vietnam.
2.2 Economic prosperity
With a population of over 95 million and a rising middle class, Vietnam has seen tremendous growth in retail sales and consumer services. Consumer spending and FDI in the consumer sectors are expected to develop at a favorable rate as a result of this continued rise in local disposable income for urban and rural consumers.
Numerous sectors in Vietnam have grown as a result of rising consumer expenditure. Vietnamese people's requirements are evolving, as seen by their need for greater standards in a number of areas, including education, health, and recreation, to mention a few. For instance, there is an increasing need for high-quality education, as seen by the increase of students enrolling in higher education from 16% in 2005 to 29% in 2015.
Consumption trends will be further impacted by the constantly changing nature of the digital business environment. The local digital economy is projected to grow to $52 billion by 2025. Subsectors of the digital economy with significant growth rates, such e-commerce, digital banking, and online gaming, will be very appealing to invest in Vietnam.
Thus, a lot of industrial zones are coming and bringing more business opportunities.
2.3 Strategically better zone
Our country’s proximity to critical nations and cities around Asia, particularly for China, makes it a better investment hotspot for international visitors. With the availability of its big coastline, our nation is in such a position that is super near to crucial shipping routes for imports and exports.
2.4 Supportive Government policies
In an attempt to motivate some investment around the nation, the Vietnamese government can provide international corporations’ incentives to invest in Vietnam.
For example, the foreign plants could make the most of tax exemption, consisting of import duty and land use tax if they invest in cutting edge sectors. The international investment amount of about $24.5 billion was kept by the Vietnamese government policies’ implementation.
2.5 Propitious Trade Agreements
Vietnam is related to some trade agreements with a lot of nations, especially for its Asian neighbors. Next, the nation is a crucial member of Southeast Asia and among the Asean’s targets is to reduce the intra-regional tariffs.
The national market is enlarged much more with its enhanced relationship with China’s mainland and even Europe. On the other hand, Vietnam has particularly signed the EU-Vietnam Free Trade Agreement with the EU.
2.6 Progressing Infrastructure
With the development of the economy, it is even sure that our nation is facing rapid-progressing infrastructure. The Vietnamese government has distributed a huge amount of money to invest in the nation’s infrastructure in many years, like hospitals, new harbors, and highways.
On top of it, enhanced infrastructure shows that shipping and transportation in Vietnam might be efficient as well. It can produce a lot of investment chances for international corporations since the Vietnamese government has been collaborating with foreign plants to grow the modern infrastructure throughout Vietnam.
2.7 Vietnamese expressways
The numerous expressways in Vietnam make it simple to travel between provinces and even adjacent countries.
Here are a few famous Vietnamese expressways.
Road between Hanoi and Lang Son. This is a piece of the highway network linking Hanoi to several northern cities. This links Lang Son province's international border gate to Hanoi. Additionally, a connection to China's Nanning-Youyi Guan Expressway is planned.
Moc Bai-Ho Chi Minh City. This highway, like the one mentioned before, links Vietnam to its neighbors. There are proposals to link the Phnom Penh-Bavet Expressway in Cambodia with the Ho Chi Minh City-Moc Bai Expressway.
North–South thoroughfare. Construction on this started in 2019. When finished, this highway will link Can Tho in the south with Hanoi in the north. Da Nang and Nha Trang will also be traversed by the motorway.
Three major international airports serve Vietnam, and a fourth is under construction.
International Terminal in Noi Bai. Over 29 million people used this airport in 2019, making it the second busiest in Vietnam.
International Airport in Da Nang. An essential international entry point for Vietnam is the Da Nang International Airport. It is located in Da Nang, a significant port city that serves as a center for IT businesses.
International Airport of Tan Son. Vietnam's busiest airport is here. In 2019, it handled close to 36 million passengers. This airport will likely be expanded to suit the rising passenger volume.
International Terminal in Long Thanh. In May 2021, construction will get underway. By 2025, the airport is anticipated to be open for business. It will operate in Ho Chi Minh City and have a capacity of 100 million passengers per year.
Vietnam has several ports and a vast coastline. In Northern, Central, and Southern Vietnam, these ports are among the notable ones.
Hai Phong. The Haiphong International Container Terminal (HICT), located in the Lach Huyen International Port, is particularly noteworthy. The HICT, which can accept bigger ships, is the first deep-water terminal in Northern Vietnam. The terminal's second phase is scheduled to be finished in 2020 after the terminal opens in 2018.
Nha Trang. Most of the traffic in the central area is handled by Da Nang's ports. The port serves more than just goods and freight. In Da Nang, cruise ships may also dock.
Viet Nam. One of Vietnam's major seaports, Vung Tau Port features a number of seaports. New ports for an oil refinery and another for passenger traffic are recent additions to this port.
City of Ho Chi Minh. The Saigon Port, the fifth-largest port in ASEAN, is part of the city's network of ports. One of the largest and most advanced ports in Vietnam is Cat Lai, which is located in the port region of Ho Chi Minh City.
2.8 Managing COVID-19 Effectively
Vietnam's economy was able to remain open as a result of the government's prompt response to COVID-19. Vietnam's low infection rates are a result of government measures to keep the virus under control.
These actions allowed Vietnamese businesses to reopen in April after an early shutdown in March. Vietnam's capacity to recover quickly has made it even more desirable to investors. The Vietnamese government has proven it is capable of handling these kinds of crises successfully.
Contrary to many other nations, Vietnam was nevertheless able to achieve some minor improvements in the second quarter of 2020, even if economic growth slowed.
These are just a few of the benefits of investing in Vietnam. As with any investment, it's essential to carefully consider every facet of your planned business.
Wrapping It Up
Here are typical reasons why you need to invest in Vietnam. When it comes to all investments, it is vital to evaluate each angle of your strategic business and culture. Thanks to the assistance of local specialists around our country, you could begin with business in Vietnam quickly. Finally, if you need some help, please reply to us right away. Thank you.
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