It is obvious to witness the new investments coming to run business in Vietnam. Despite the affection from Covid-19 epidemic, the nation completed 2021 with 2.58% growth in GDP, which was an amazing result compared to other developing countries in the area. And it is not just that, we are expected to become the fastest-growing economy in SouthEast Asia, with a strong bounce to growth at 6.6% in GDP in 2022.
From more than 15 years working in international trade, I have colleagues and partners from UK, Japan, Hong Kong and Korea, who recently asked me what businesses are potential to invest or start in Vietnam? It is a difficult question, yet, I can give some overviews for them, and you, to look at and have your own consideration.
Agriculture – from farm products to a fruitful business
Vietnam is well-known as an agricultural nation. The biggest advantage for developing agriculture is the large area of deltas for crops, among which rice is the most important. You may hear about the Mekong Delta, a famous destination for traveling, however, this region produces most farm products of Vietnam. Apart from rice growing throughout paddy fields, Mekong Delta is ideal for other tropical fruit plantations like bananas, coconuts, jackfruits and citruses. Coffees and teas are main products in the highlands, which totaled 2 billion US$ in Vietnam’s export value in 2020.
Moreover, being considered as the backbone economy of the country, agriculture is strongly supported by the government. There are lots of plans accelerated to boost agriculture investments, including amendment of the law for attracting more high-tech cultivation businesses.
If you’re interested in the future of alternative foods that are based on plant-based goods, Vietnam is the country to watch right now. The country is in it’s best situation for the sustainable cultivation of rice protein and other plant-based ingredients that are vital to the production of plant-based foods.
Manufacturing, whatever you produce or OEM models
Samsung has added $920 million into its factory in Vietnam, which accounts for half of its global smartphone output, to make circuit boards, camera modules, and other parts, according to a provincial government in the Southeast Asian country.
This giant Korean group is not alone. Thai company SCG Packaging and Japan’s Rengo Company invested US$611.4 million in a paper packaging factory located in Vinh Phuc province that will manufacture 800,000 tons annually.
LEGO Group signed a memorandum of understanding with VSIP to establish its first carbon neutral facility in Binh Duong province, and this will be their sixth factory globally.
Vietnam is named “manufacturing hub” , not for no reason. The competitive labor resources are the key advanced factor to invest in your business of manufacturing here.
Consumer goods & the online shopping
Everyone keeps talking about the E-commerce market in Vietnam excitedly though this sector is extremely tough and competitive. They have been spending continuously, in order to beat the rivals and strengthen their positions.
With a growth rate of 36 percent in 2020, the internet economy in Vietnam is one of those in Southeast Asia that is expanding at one of the highest rates. E-commerce sales in Vietnam accounted for around 5.5 percent of the country’s total retail sales of consumer goods and services in the year 2020, generating approximately 11.8 billion U.S. dollars in revenue, as reported on Statista.
By 2025, it is predicted that online orders would account for about ten percent of all products and services sold in the country. Starting a business in Vietnam with a friendly E-commerce platform is not a bad idea, especially if you have good supplies for hot consumer goods.
Any-tech startups
The fact that IT-employees are being hunted with a high salary and additional benefits in recent years proves that technology-start ups are still blooming.
Fintech, in the crypto and blockchain industry, is still one of top funded businesses. Momo is the best success to look out for in the field, which is the most used application for e-payment.
The second technology industry is being explored next to Fintech, is Education (Edtech). The educational technology (Edtech) business in Vietnam is reported to have great potential and is drawing the interest of investors, especially in the wake of the COVID-19 outbreak and its complicated developments.
E-learning platforms have been rising since 2019, but only after the lock-down from epidemic, it becomes more popular and thriving. The market is projected to reach revenue of about 3 billion dollars by 2023, as reported by Ken Research.
Certainly, doing a new business is full of challenges, and startups usually fail. However, Vietnam is still showing the world that we are growing very differently. We got over the pandemic after lock-downs in a short time, and are on the way to impress the world with dramatic growth in the coming year.
Wanna more consultants? I am ready to offer the market research, executive operation, marketing and brand strategy for your initial business plan in Vietnam, as per request to admin@sakuravn.info
(Featured photo by Travel with Josh)