Which sector is best to invest in Vietnam?

The history of business investment in Vietnam may not be prominent in the international scene but it has shown a considerable growth in recent years. The issues of its economy have slowed down the overall development of businesses across the country. For now, the growth of Vietnam’s economy seems to come as a surprise for many, though it has been positive for the past years. However, it needs a lot of catching up compared to its neighboring Asian countries.

Which sector is best to invest in Vietnam


Sectors to invest in Vietnam

The real estate market

In the real estate market, the foreign investors are warming up to investing in the lands of Vietnam. Their eyes are again fixed on the country, since the economy seems to be growing and the property prices are affordable for corporations, investors or individuals. Investors are inclined in investing directly as it provides a transparent process in every transaction. Lands cannot be entirely owned by groups or individuals, be it a Vietnamese or a foreign investor. The protocols and provisions in land distribution are governed by the Land Law where the State distributes the land to groups or individuals. Annual rents must be paid by foreign investors if they have made a lease agreement with the State. International license is also required by law when doing real estate brokerage business services.

The manufacturing sector

In the manufacturing sector, Vietnam has become a large player in the international scene. Big companies in the manufacturing business moved to Vietnam and are investing and spreading their businesses within. The country is said to be working on the rules on how to attract more of these investors to their lands. Getting a license to operate as a manufacturer in Vietnam has become much easier as compared to Vietnam’s Asian neighbours. These are efforts made by the Government to welcome more foreign investments in the country, and these have been proven successful as helped to attract foreign entities to invest in Vietnam.
The production of new materials and manufacture of high-end technology and information technology products has increased during the past years. For instance, Intel has been operating in the country since 2010 and has invested a reported $1 billion on their test and assembly plant. Samsung Electronics has made an $11 billion production investment as well. Other tech companies such as Apple are also operating in some locations of Vietnam.

The industrial sector

Industries where labour force is in demand are also interested and attracted to invest in Vietnam. The huge growth of the country and its inexpensive labour force attracted a lot of foreign business entities to establish their businesses in Vietnam. Investing at a large-scale industrial projects is also encouraged within the country, including construction and development of infrastructure facilities. Likewise, there have been large investments in the tech sector in Vietnam.

The different economic sectors in Vietnam are not equal in terms of growth but there are some sectors where the government encourages investors to focus on: the government of Vietnam offers investment incentives to investors who will make contributions to shortlisted sectors, for a better investment management. Companies investing in these sectors can enjoy benefits such as Corporate Income Tax exemption or reductions from the first profit making year, land rental exemption or reduction, losses carry forward, and import duty exemption on the importation of equipment and materials. Surely there are differences between the Vietnam investments as compared to investments in other countries, but all of these might share some of the international law features.

Invest in Vietnam different sectors

This is SBC Interlaw’s Vietnam investment review according to the most profitable sectors where to look into. However, when embarking on a new journey to invest in Vietnam, it is recommended to secure support from experienced lawyers in the international business law. Seeking for legal advice and legal counsel from a trusted law firm that offers legal services related to commercial law and investments in Vietnam might be of help.

If you are planning to invest in Vietnam and need assistance, contact SBC Interlaw.


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