Why Vietnam Is Your Next Investment Desired destination

Why Vietnam Is Your Next Investment Desired destination

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Vietnam has been for a long time an attractive investment destination for foreign investorsdue to its strategic location, stability in the political landscape and its low-cost but skilled labor force. Despite the difficulties posed by the pandemic, Vietnam has proved that it is able to effectively manage the crisis and get its economy back on track after the pandemic.

Vietnam Market Overview?

In the 11 months of 2021 Vietnam has performed relatively well in terms of FDI despite the pandemic. There has been more than US$26.46 billion of FDI flows on November 20 20, 2021.

Processing and manufacturing accounted for the largest share of FDI inflows , followed by distribution and manufacturing of electricity, real estate, and wholesale and retail. Singapore, South Korea, and Japan were the most prominent investment partners in Vietnam. The major export partners of Vietnam include the US, China, the EU, ASEAN, and South Korea, while import top importers included China, South Korea, ASEAN, Japan, and the EU.

Vietnam is still heavily dependent on importing raw materials. Products made in Vietnam are mostly exported, particularly to the US, the EU as well as China.

How does an investor get into the market?

There are several ways to get into in the Vietnamese market. They include representative offices (RO), branch offices (BO) Foreign-invested entity (FIE (also LLC)), joint-stock company (JSC) and public-private partnerships (PPP) alternatives. In our experience, the most well-liked investment vehicles are the RO as well as the FIE. The RO is simple to establish and is also a good alternative for investors who are new to investing. Businesses however need to have a lease agreement in place prior to หุ้นเวียดนาม setting up an entity. The timeframes to set up can vary therefore it is recommended to begin early, to avoid any issues and to set realistic expectations.

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