Over the years, Vietnam has been crowned one of the fastest-growing economies in Southeast Asia. Thanks to the booming manufacturing and processing industry, soaring local demand, and the high inflow of foreign direct investments, Vietnam’s economy recorded solid growth in 2019, beating out most other nations in the region.
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However, due to the unforeseen COVID-19 crisis, Vietnam’s economy was affected. According to the General Statistics Office of Vietnam, in the first quarter of 2020, Vietnam’s GDP dropped by 3.8%. This sounds like bad news for most investors but it is actually the opposite.
Since Vietnam fought COVID-19 much earlier than other countries and the pandemic is now under control in Vietnam, the country’s economic growth will rebound sharply in 2021, approximately 6.6%.
The Vietnamese government also issued several initiatives to help restore the country’s economy. For example, low-interest rates, a credit support package worth US$10.8 billion, financial assistance to employers and employees, and postponed tax payments and land fees.
To bounce back hard and strong, here are the rising business opportunities brought forth by the coronavirus in Vietnam that you must explore as an investor:
1. Tourism Industry
Although COVID-19 has brought about a huge negative impact on Vietnam’s tourism industry, it is expected that the industry will bounce back faster and more powerful than ever. Especially when the coronavirus situation in Vietnam is very well-controlled and has won praise internationally.
There has been a huge sell off of hotels all around the country, bringing down the prices seignificantly. This is especially true in tourism hotspots such as Nha Trang and Danang.
The tourist rebound was particularly apparent for domestic travelers during the holiday weekend in Vietnam between April 30 and May 3. Hotel occupancies were reported to be much higher. The number of international tourists is also destined to grow very soon.
2. Digital Wallet and Mobile Commerce
A digital transformation is now happening in Vietnam due to this pandemic. Online transactions in the form of cashless payment, food delivery services, online grocery shopping, and other e-commerce sales have increased significantly.
Mobile orders through applications have grown at least 10x, pushing retailers to work with third-party digital payment providers. Some retailers even create their own digital wallets and put their focus on mobile commerce.
3. Online Teaching
Though online learning has been discussed for years in Vietnam there wasn’t any real implementation before COVID-19.
However, since most schools and campuses have to shut down amid COVID-19, online teaching and learning have now become a reality and a widely-discussed subject to understand and strengthen its capacity for students, teachers, and institutions.
In response to the coronavirus in Vietnam, the Ministry of Education and Training (MOET) issued two important documents in March 2020 to legalize online teaching in Vietnam and ensure the quality of distance learning.
4. Delivery App Development
Most Vietnamese residents have to stay home during this time to prevent the spread of COVID-19.
However, the confinement does not slow down the businesses of restaurants and food stalls. People still order food takeout and delivery workers are waiting outside the restaurants to pick up the orders and deliver them to the customers.
As we can see, food businesses have to remodel themselves to combat this unforeseen circumstance.
Therefore, the food takeout services through a third-party delivery app have been growing significantly and this will also be a trend in the future.
5. Real Estate Sector
Although the real estate industry has slowed down during COVID-19 due to the ban on foreign entry, there are still many ongoing real estate projects in Vietnam.
This is because when the crisis is over, the real estate industry has to meet the locals and foreign visitors’ needs when the demand recovers.
What is more, the Vietnamese government has issued several preferential policies to support the real estate industry for them to overcome challenges brought by the pandemic.
How Cekindo can Assist
The coronavirus crisis in Vietnam has had a profound impact on Vietnam’s countless entrepreneurs.
Therefore, supporting our clients with timely and customised solutions has never been more important. Cekindo is responding to your needs and has been actively updating business and legal information based on the most current circumstances.
Despite the challenges of COVID-19 in Vietnam, our team of experts at Cekindo is committed to serving all entrepreneurs and business owners in Vietnam through this crisis.
We are also building ongoing resources of the coronavirus in Vietnam to help prepare your business in the weeks and months to come. Consult Cekindo today. Fill in the form below.