Vietnam has established itself as a stable, rapidly developing country with high growth rates for international business and foreign investment. Find out more about why you should invest in Vietnam, what are the benefits and 8 promising sectors for investment in Vietnam in 2024

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During the last 10 years, rapid economic development has been observed in Vietnam. In the first ten months of 2023 alone, the country attracted more than USD 16.41 billion in foreign direct investment in 2,865 new projects. And in 2024, this Asian pearl will continue to attract investors with its dynamic markets.

Why should you invest in Vietnam? What areas are promising for investment? We will find out further.

Why is Vietnam an ideal place to invest? 6 main advantages

1. Strategic trade agreements

Vietnam takes an active part in the world economy and has a number of important trade agreements. In particular, as an ASEAN member, Vietnam has signed key documents such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP) and the EU-Vietnam Free Trade Agreement (EVFTA). Also, Vietnam is actively working on the expansion of global economic partnership. This fact makes the country a profitable investment option for companies seeking to gain an advantage in the international trade market.

2. Qualified and competitive workforce

The number of working population in Vietnam is 60 million people and this figure increases by more than 1 million people every year. The second advantage is that the young population prevails among the workers in Vietnam. That is why investing in Vietnam is becoming more and more attractive for companies seeking a skilled and cost-effective workforce.

3. Industrial and economic zones

Vietnam's Economic Zones (IZ) and Industrial Parks (IP), which are strategically located throughout the country, offer a favorable environment for production and investment. In particular, these regions can boast of reliable infrastructure, efficient logistics and attractive tax incentives.

4. Political stability

Vietnam's stable political system creates ideal conditions for doing business. The country's government actively promotes economic growth and infrastructure development.

5. Growth of consumer demand

Another reason to invest in Vietnam's economy is growing consumer demand. As a country's economy grows, so does demand, especially in sectors such as education, healthcare and recreation.

6. Advantageous geographical position

Vietnam is located at the crossroads of the main trade routes, this fact positions it as a gateway to the markets of the Asia-Pacific region. The country's advantages are its proximity to large economies such as China, Japan and Singapore.

Promising sectors for investment in Vietnam in 2024

With strong economic growth, a young and skilled workforce and a favorable business environment, Vietnam continues to attract investors looking for opportunities to invest in the country's economy. The key industries in which foreigners should invest money in 2024 include:

1. Technologies and digital innovations

Vietnam's technology sector is growing rapidly, making it an attractive destination for investors. E-commerce, finance, health care are areas experiencing rapid growth. As the government focuses on promoting the digital economy, investments in technical infrastructure and software development are likely to reap significant returns.

2. Renewable energy

The renewable energy sector is gaining momentum as Vietnam struggles to address energy security and environmental issues. The government has set ambitious targets for renewable energy capacity, providing incentives for investors in the solar and wind energy sectors. The country's rich natural resources and commitment to sustainable development make renewable energy a promising area for investment in Vietnam.

3. Production and industry

Vietnam's strategic location, skilled workforce and participation in various free trade agreements position Vietnam as the manufacturing hub of Southeast Asia. Most investors prefer the following sectors - electronics, automotive industry, textiles and engineering.

4. Health care and pharmaceuticals

The demand for quality medical services and pharmaceutical products is growing in Vietnam. Currently, the country's healthcare sector is undergoing reforms and modernization, which creates attractive conditions for investment. Hospitals, medical equipment manufacturing and pharmaceutical manufacturing are industries that are ready for maximum development.

5. Infrastructure and real estate

Along with the development of the economy, Vietnam's infrastructure needs are also growing. Currently, the country's government is focused on improving transportation networks, urban development, and communication systems. Also, the real estate sector, including residential, commercial and industrial, remains an attractive choice for investors.

6. Agribusiness and food industry

Vietnam's agricultural sector is a vital part of its economy. Investments in agribusiness, food industry and agricultural products are gaining momentum. The country's fertile land, diverse climate zones and exports of products such as seafood, fruit and coffee make agribusiness an attractive sector for international investment.

7. Education and training

As Vietnam's population becomes more education-oriented, the demand for quality training services is increasing. Educational platforms, vocational training centers, international schools and higher education institutions offer numerous ways to invest in the education sector.

8. Production of semiconductors

Vietnam's semiconductor sector is seeing rapid growth in foreign direct investment (FDI) and global companies are recognizing its potential. Vietnam has become a key market for South Korean semiconductor manufacturers. This trend is actively developing, especially against the background of slowing demand for microcircuits from China.

Investments in Vietnam's chip industry have yielded significant results, confirming a 74.9% increase in revenue from semiconductor chip exports to the US over the past year. Vietnam is now the third largest supplier, accounting for 10% of semiconductor exports to the US, behind only Malaysia and Taiwan.

Vietnam's economic growth in 2024 opens up great opportunities for investors. As sectors such as technology, healthcare, education and manufacturing gain momentum, the potential for significant gains is clear.

The editors of Visit World recommend using the Tourist Guide for Vietnam for a comfortable and safe trip.

The guide is a detailed written document that contains basic advice on obtaining a visa, crossing the border, getting a job, citizenship, and much more. More details at the link.

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Photo: PHUNG HUYNH VU QUI / GETTY IMAGES