Vietnam has recently started to attract investors worldwide – thanks to its location in the heart of Southeast Asia, ever-evolving urbanization, stable growth rate, continual innovation, socio-economic ambitions, and greater economic integration.
With the mission to become a developed nation in 2021, Vietnam has also become one of the world’s most profitable regions for investors to invest in.
With the open policy for investments, many global companies and renowned investors from across the world, Vietnam offers many business opportunities to anyone who would like to take part. So let’s look at some of the smart ways of investment in Vietnam in the year 2021.
|1. Garment and Textile Products business
2. Construction and building Materials business
3. Furniture Making and Remodeling business
4. Real Estate business
5. Agricultural Products Processing business
6. Car/Automobile business
7. Renewable Energy business
Vietnam's textile and garment industry has been developing strongly and plays an increasingly important role in the country's economic growth. Therefore, this industry also has a great impact on Vietnam's socio-economic development.
At the same time, the textile and garment industry employs more than 1.6 million people, accounting for more than 12% of the industrial workforce and nearly 5% of the country's total labour force. Thus, Vietnam’s textile and garment industry has contributed great value to its exports and GDP and solving employment. Therefore, this is a highly profitable business in Vietnam.
If you want to make a lucrative investment in Vietnam, then the Vietnamese textile and garment industry could be your preferred sector, as you can invest production line with low cost and very cheap labour.
In addition, the demand for fashion by the young generation in the country is very high, and young clothing is just trendy and suitable for customers. Therefore, clothing can be sold in both domestic and international markets.
If you think it would be too costly to start your own textile and garment production company, you can choose to become a cloth retailer or start an online clothing store. All these businesses are equally profitable.
Another good business that you can start in Vietnam is the selling of construction and building materials. There are so many building materials that you can sell, such as cement, roofing materials and home fitting materials.
You could also start a business in the construction service sector like painting services, plumbing, home decoration, home renovation, HVAC installation and repair, amongst several others.
Besides, the demand for building and repairing houses in Vietnam is very high, allowing investors to build their own market.
Vietnam is a rapidly emerging market, offering ground floor and growing opportunities for U.S. exporters and investors.
Vietnam’s economic growth rate has been among the highest globally in recent years, expanding annually at 6.5-8.3%, while industrial production has been growing at around 14-15% a year. This economic growth has been accompanied by a surge in construction activities, which has created a strong demand for building and construction materials.
A construction boom has been pushing the demand for construction materials far beyond locally produced supplies. As a result, prices have risen, and builders have been forced to import huge cement, iron and glass.
According to the U.S. Statistics Office, building and construction material imports from the U.S. to Vietnam stood at US$28 million in 2006 and US$90 million in 2007, and industry experts estimate U.S. exports to increase to US$100 million in 2008. The U.S. currently supplies about 5% of this $2 billion market, and there continue to be significant selling opportunities in Vietnam for U.S. companies.
This could be one of your smart investments in the present time and also shortly.
Furniture making is a good business because every home needs at least a moderate decoration. Besides, many companies and business people in other countries take advantage of wood and labour from Vietnam, which they establish new company making interior design with sophisticated design and luxury. Therefore, the Vietnam furniture industry is definitely export-led, with 65% of total production being sold abroad.
Vietnam operates about 1,500 medium to large furniture manufacturers, with about 250 of them being foreign direct invested companies; the sector employed is estimated at 17,000. These leading foreign and domestic firms account for nearly all of Vietnam's exports.
The furniture industry in Vietnam offers a comprehensive picture of the furniture sector in Vietnam, providing data on furniture production and furniture consumption, furniture imports and exports. In addition, factors determining the demand for furniture are examined, and the furniture distribution system and furniture supply structure.
You may consider it as one of your prospective ventures in Vietnam.
Another profitable business you can start in Vietnam is building/buying properties for resale. With the number of expatriates and immigrants coming into Vietnam, real estate is a business you won’t regret. You can buy old properties to renovate and resell; you can build office blocks or small housing units for rent as well.
However, real estate is an expensive business because you need capital to invest in this sector. But it’s not a totally hopeless situation for the cash-strapped investor, as you can still partake in the real estate business by becoming a property manager or a real estate brokerage. In addition, you can earn a commission for these services.
Many industry experts believe that, although there is no basis for saying that the market has a bubble in the next 1-2 years, the bubble may appear in the period after 2021. Now, the supply is still a little higher than demand. However, after 2018, demand will be greater than supply, and there will be a "bubble" in 2021-2023.
When the financial market is unstable, the most stable shelter is real estate. 2.5-3 million people from rural to urban areas, creating a second wave of urbanization, thereby increasing the demand for real estate.
After a year of high volatility, the real estate market has surpassed through the forecast of a real estate bubble burst scenario at the end of 2018. More optimistic when in the second half of 2018, a series of positive signals appeared with liquidity in some segments. Vibrant loans for real estate businesses become diverse.
The market has dropped a bit heavy for the current pandemic situation, but the running situation looks promising. In Vietnam, if you have the proper financial ability to invest your money for a high return, we’d recommend investing your money in the Vietnamese real estate sector.
Any business in the food industry would always make sales as long as the business owner employs the right strategy to promote and market the business. Agricultural products processing involves plantation, livestock breeding, which can complement each other.
Vietnam's environmental conditions are well suited to fruit trees or industrial crops. Foreign investors can use natural resources such as land, water, climate weather etc. To create a farm, produce agricultural products.
You can always find an agricultural product that you can process for sales and export.
The car business is attracting investment in Vietnam. People need to travel and need high security. According to the law, there are conditions for warranty and maintenance facilities, including the requirement for workshops, warehouses, equipment, tools, human resources, quality management system, fire prevention mechanisms, environmental protection, labour safety, and sanitation.
The official reduction of 50% of the registration fee for cars produced and assembled domestically by the end of 2020 has contributed to stimulating consumption after the COVID-19 pandemic. In addition to reducing the registration fee of 50% for domestically manufactured and assembled cars, the Government also requested research and revision of special consumption tax regulations to support the development of domestic production.
According to experts, with the above tax and fee reduction, the Government has created a great opportunity for the domestic car industry, helping automobile businesses to reduce costs and prices. Therefore, the automobile market in June is expected to grow. Vietnam’s Industrial Policy and Strategy Institute predict that car sales will rise from 2018’s levels of around 300,000 vehicles to 800,000 vehicles by 2025, and hitting the million mark by 2030.
In conclusion, there is a tremendous growth expected in the Vietnamese automotive manufacturing sector, as domestic sales and international trade are rising. Moreover, as many foreign investors wish to enter either Vietnam or Southeast Asia, this could be one of the golden opportunities in the upcoming years.
Sources of electricity generation in Vietnam are coal, gas turbines and hydropower. However, these natural sources are non-renewable, and the government of Vietnam is putting in efforts to increase the use of renewable energy. The government aims to take advantage of the country’s solar and wind energy potential and triple its share for electricity production by 2030.
Vietnam’s electricity demand has increased rapidly—an average of 10% per year over the past five years. To keep up with demand, the country will need a significant amount of new capacity, requiring $150 billion in capital investments for generation and grid upgrades, according to Electricity of Vietnam (EVN’s) estimates.
Vietnam may be wise to pursue renewables given its natural hydro endowments and lower-cost solar and wind power as it decides a future power plant.
In our recent review of Vietnam’s power sector, it is determined that a renewable-led plan would present the country with the best opportunity for capital formation while posing the lowest risk and impact on public budgets.
Vietnam has tremendous natural endowments: four to five kilowatt-hours per square meter for solar and 3,000 kilometres of coastlines with consistent winds in the range of 5.5 to 7.3 meters per second.
Yet, the country’s own market for renewables remains in its infancy, with only about 200 megawatts of grid-scale, renewable solar and wind capacity online, primarily through wind projects. Most of Vietnam’s renewable energy generation capacity, some 3.4 gigawatts annually, is intended for export to Europe and the U.S.
A successful renewables-led pathway includes building out the country’s wind and solar generation capabilities (39 gigawatts and 61 gigawatts by 2030, respectively). This is five times more than what is called for in Vietnam’s current energy plan—which aims by 2030 to increase coal by 45 gigawatts—and would need to be supplemented by natural gas and battery storage to help firm renewables generation.
Considering its prospect, the renewable power sector of Vietnam seems one of the most profitable ways of venture for you at present.
There are many smart ways to your prospective business opportunities in Vietnam. You have to choose the smartest way that suits you the best.
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