Vietnam has recently started to attract the attention of investors from all over the world – thanks to its location in the heart of Southeast Asia, ever-evolving urbanisation, stable growth rate, continual innovation, socio-economic ambitions and greater economic integration. With the mission to become a developed nation in 2020, Vietnam has also become one of the world’s most profitable regions for investors to invest in.
With the open policy for investments, a multitude number of global companies and renowned investors from across the world, Vietnam offers a myriad of business opportunities to anyone who would like to take part.
According to PwC, Vietnam has a trading flow of US$340 billion with foreign direct investment contributing to 22% of its economy.
Let us take a look at some of the best sectors for investment in Vietnam in 2019.
High-end and Luxury Hotels
In 2016, the tourism revenue of Vietnam reached US$9.3 billion. It is also estimated that the number will double by 2027. Though accommodation businesses in tourism and hospitality industry are flourishing in Vietnam, those high-end and luxury hotel sectors, particularly 4 or 5-star hotels are still untapped in the country. Therefore, these upscale tourism accommodations present a huge investment potential.
Preferred ways to get started in this untapped sector is via joint ventures and partnerships in major cities such as Hanoi and Ho Chi Minh City, where the highest number of tourists are recorded.
In Vietnam, the luxury hotels are mainly prevailed by huge international brands such as Accorhotels, InterContinental Group and Hilton Group. Thus, joint ventures and partnerships with local developers are the best options for foreign investors to get into the scene.
Business Process Outsourcing
Also known as BPO and as a sub-sector in the Information and Communications technology (ICT), business process outsourcing is a booming sector in Vietnam. The revenue of ICT was recorded at US$59.9 billion in 2016.
It is positive that the BPO industry will continue to grow extremely fast, led by Vietnam’s surging skills and talent pool. Furthermore, BPO can be extended to support the prospering manufacturing industry in Vietnam.
The best way to get started in a BPO sector is through setting up a new company, partnership and acquisition of local operations. Potential hubs for BPO in Vietnam include Hanoi, Ho Chi Minh City, and Da Nang.
Solar and Wind Energy
Sources of electricity generation in Vietnam are coal, gas turbines and hydropower. However, these natural sources are not 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.
Location wise, the southern region in Vietnam is more suitable for investors to put their money in solar projects, while the mountainous regions of central Vietnam and the coastal areas in the south central region are suitable for wind energy projects.
Retail Banking and Fintech
There is high percentage of unbanked population in Vietnam. And, the banking and financial services sectors are still underdeveloped as well, meaning numerous opportunities for investors this rapidly developing country.
Among the many banking and financial sectors, retail banking with payment cards and wealth management services are particularly high potential. Fintech is also another sector to look into as Vietnam has a good foundation to transform into a cashless society in the very near future, due to its high mobile penetration.
Food and Modern Agribusiness
Even though the export of agriculture products in Vietnam has increased over the years, this sector has grown slowly due to its low modernisation and productivity. Agriculture contributes to 20% of the country’s total export and thereby we can see a huge potential in modern agribusiness sector.
Invest in Vietnam Now
Investors, it is time to make a smart move to tap into the alluring Vietnamese market. Get in touch with us today by filling in the form below. We would be happy to provide you with more insights and guidance on how to start your business in Vietnam.