Why Vietnam Is Your Next Financial investment Destination

Why Vietnam Is Your Next Financial investment Destination

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Vietnam has always been an attractive investment location for foreign investors, thanks to its strategic location, socio-political stability and low-cost yet skilful labour force. In spite of the challenges posed by the epidemic, Vietnam has proved that it can successfully manage the situation and bring its economy back in shape post-pandemic.

Vietnam markets overview?

In the 11 months of 2021, Vietnam has done fairly well with regard to FDI in spite of the pandemic. There was nearly US$26.46 billion in FDI inflows up to November 20 in 2021.

Manufacturing and processing accounted for the majority of FDI inflows followed by distribution and electricity manufacturing real estate, retail and wholesale. Singapore, South Korea, and Japan were the top 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 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 กองทุนหุ้นต่างประเทศ ways to get into in the Vietnamese market. They include representative offices (RO) branches office (BO), foreign-invested entity (FIE (also LLC)) and joint-stock companies (JSC), and the public-private partnership (PPP) options. According to our experience, the most popular investment vehicles are RO and FIE. ROs are easy to establish and is a great option for first-time investors. However, businesses must have a lease agreement before creating an entity. The timelines for setting up may differ, so it's best to begin early, to avoid any issues and to set realistic expectations.

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