Why Vietnam Is Your Upcoming Investment Desired destination

Why Vietnam Is Your Upcoming Investment Desired destination

Blog Article

Vietnam has long been an attractive investment destination for foreign investors, thanks to its strategic location, stability in the political landscape and low-cost yet skilful labour force. Despite the difficulties posed by the epidemic, Vietnam has proved that it can effectively handle the situation and bring its economy back on track post-pandemic.

Vietnam markets overview?

In the last 11 months of 2021, Vietnam has performed relatively well with regard to FDI even with the pandemic. There has been nearly US$26.46 billion of FDI flows on November 20, 2021.

Processing and manufacturing accounted for the lion's share of FDI inflows followed by distribution and manufacturing of electricity as well as real estate retail and wholesale. Singapore, South Korea, and Japan were the most prominent investor in Vietnam. The major export partners of Vietnam include China, the US, China, the EU, ASEAN, and South Korea, while import top import partners were China, South Korea, ASEAN, Japan, and the หุ้นเวียดนาม EU.

Vietnam is still heavily dependent on the import of raw materials. The products produced in Vietnam are mostly exported, particularly to the US and the EU, and China.

How do investors get access to the market?

There are a variety of ways to get into to the Vietnamese market. They include representative offices (RO) branch office (BO) Foreign-invested entity (FIE (also LLC)), joint-stock company (JSC) as well as private-public partnerships (PPP) options. According to our experience, the most popular investment vehicles are RO as well as the FIE. The RO is simple to set up and can be a good option for first-time investors. Companies must however be able to sign a lease agreement prior to setting up an entity. The timeframes to set up can vary therefore it is recommended to begin earlyto avoid issues and to set realistic expectations.