July 21, 2023
Business opportunities in Vietnam that are catching the attention of investors in 2023
Business opportunities in Vietnam are diverse and abundant while offering significant headroom for growth. Selecting one or more suitable business lines for investment will contribute to promoting Vietnam’s development and should provide investors with a solid return.
Overview of the Vietnamese Market in 2022
In 2022, Vietnam witnessed good signs of economic development according to the General Statistics Office of Vietnam:
- GDP surged to a record of 8.5% YoY. In 2023, the Government has set a target for GDP to increase 6.5% YoY.
- The consumer price index (CPI) only increased 3.15% YoY, indicating that the government was successful in controlling inflation.
- Labor productivity of the whole economy increased 4.8% YoY, which demonstrates the development potential of the economy moving forward.
Notable business opportunities in Vietnam
Fashion industry
The fashion industry in Vietnam is very young vis-à-vis other countries in the region and the world. However, this is an industry with great potential for future development and thus offers many business opportunities in Vietnam.
Fashion stores and showrooms can be found in high density on streets in both urban and rural areas. Moreover, more than 30% of the area inside trade centers and markets is occupied by fashion stores.
The explosion of social networks and e-commerce sites has paved the way for the rapid development of the fashion industry in Vietnam. As reported by Metric.vn, a local e-commerce analyzer, in 2022, the fashion industry’s revenue on Vietnam’s four largest e-commerce platforms — Shopee, Lazada, Tiki and Sendo — was estimated at VND20,800bn, accounting for about 15.4% of the entire market.
Fashion stores and showrooms can be found in high density on streets in both urban and rural areas. Moreover, more than 30% of the area inside trade centers and markets is occupied by fashion stores.
The explosion of social networks and e-commerce sites has paved the way for the rapid development of the fashion industry in Vietnam. As reported by Metric.vn, a local e-commerce analyzer, in 2022, the fashion industry’s revenue on Vietnam’s four largest e-commerce platforms — Shopee, Lazada, Tiki and Sendo — was estimated at VND20,800bn, accounting for about 15.4% of the entire market.
As can be seen in the chart above, women’s fashion is the second biggest revenue contributor for Shopee. Men’s fashion ranks fourth and mother & baby, which includes kid’s fashion, ranks fifth. These results clearly show that the fashion industry is currently booming — especially on e-commerce sites.
However, the development of the fashion industry in Vietnam has not caught up with the increasing demand for fashion. Therefore, the market’s coverage still mainly comes from imported fashion products. Vietnamese brands are often small, fragmented and do not have a strong foothold in the local market.
A few brands like Yody, Canifa, OnOff and Cool Mate have made successful steps in the market. However, Vietnam needs more strong brands with diverse styles and materials. Instead of just focusing on basic products, some entities are taking advantage of business opportunities in Vietnam through introducing trendy products to the market that mainly come from foreign brands and small designers.
However, the development of the fashion industry in Vietnam has not caught up with the increasing demand for fashion. Therefore, the market’s coverage still mainly comes from imported fashion products. Vietnamese brands are often small, fragmented and do not have a strong foothold in the local market.
A few brands like Yody, Canifa, OnOff and Cool Mate have made successful steps in the market. However, Vietnam needs more strong brands with diverse styles and materials. Instead of just focusing on basic products, some entities are taking advantage of business opportunities in Vietnam through introducing trendy products to the market that mainly come from foreign brands and small designers.
Information technology
The information technology industry has rapidly developed to become one of the industries containing the most business opportunities in Vietnam in recent years. Currently, Vietnam is a fast growing information technology center in Southeast Asia.
Thanks to having the advantages of a talented young workforce, government support and agile acquisition of global technological developments, large cities such as Hanoi and Ho Chi Minh City have become important locations for international information technology companies for investment and deployment.
Some potential career fields in information technology in Vietnam include:
Thanks to having the advantages of a talented young workforce, government support and agile acquisition of global technological developments, large cities such as Hanoi and Ho Chi Minh City have become important locations for international information technology companies for investment and deployment.
Some potential career fields in information technology in Vietnam include:
- Fintech companies and models
- Artificial intelligence
- Blockchain
- Big data
- Cyber security
Import-Export & Warehousing
Due to its favorable geographical position, long coastline and convenient transportation options, Vietnam is a suitable place for cargo transshipment. Therefore, the import-export & warehousing industry in Vietnam has been developed and has achieved high efficiency.
As reported by the World Trade Organization (WTO), Vietnam is among the countries with the fastest growth in commodity exports. In 2019 (before the pandemic), Vietnam’s export turnover was more than USD263bn, increasing 8.1% YoY. Notably, Vietnam’s total import-export turnover rose 9.5% YoY in 2022.
In recent years, Vietnam has attracted a great deal of international investment through a variety of export industries such as textiles, electronics, auto components and agricultural processing, among others.
The development of warehousing in Vietnam has a large amount of potential as demand for cargo transportation, transshipment and storage has been increasing. Currently, many logistics companies are making investments in modern warehouse systems or smart warehouses to improve storage capacity. Therefore, import-export and warehousing are very attractive business opportunities in Vietnam with great potential for future development.
As reported by the World Trade Organization (WTO), Vietnam is among the countries with the fastest growth in commodity exports. In 2019 (before the pandemic), Vietnam’s export turnover was more than USD263bn, increasing 8.1% YoY. Notably, Vietnam’s total import-export turnover rose 9.5% YoY in 2022.
In recent years, Vietnam has attracted a great deal of international investment through a variety of export industries such as textiles, electronics, auto components and agricultural processing, among others.
The development of warehousing in Vietnam has a large amount of potential as demand for cargo transportation, transshipment and storage has been increasing. Currently, many logistics companies are making investments in modern warehouse systems or smart warehouses to improve storage capacity. Therefore, import-export and warehousing are very attractive business opportunities in Vietnam with great potential for future development.
Tourism
Vietnam is well known for its majestic natural beauty, rich cultural heritage and famous landmarks. Therefore, tourism is considered one of the industries in Vietnam with the highest potential for development.
Vietnam’s tourism industry is growing much faster than other economic sectors. According to the General Statistics Office, the number of international tourists entering Vietnam rose from 5.1 million in 2010 to 18 million in 2019 — a nearly fourfold increase over 10 years. Through maintaining political and legal stability, Vietnam has become one of the safest countries in the world. Most tourists feel completely secure when arriving in Vietnam. After the pandemic, Vietnam’s tourism sector has gradually opened and attracted many foreign tourists. Vietnam is famous for many tourist destinations, including Ha Long, Sapa, Hue, Hoi An, Da Nang and Phu Quoc, among others, which offer everything from beautiful beaches, historical structures and cultural heritage. These destinations attract many foreign and Vietnamese visitors.
The Vietnamese government has emphasized investment in tourism infrastructure such as air routes, seaports, inland waterways and highways to facilitate strong tourism development and attract more international tourists. In addition, tourist areas are receiving investment and are improved to meet the needs of international visitors.
There are many different types of tourism businesses for investment, including tourism complexes with unique experiences, resort tourism, cultural tourism, culinary tourism and sports tourism.
Vietnam’s tourism industry is growing much faster than other economic sectors. According to the General Statistics Office, the number of international tourists entering Vietnam rose from 5.1 million in 2010 to 18 million in 2019 — a nearly fourfold increase over 10 years. Through maintaining political and legal stability, Vietnam has become one of the safest countries in the world. Most tourists feel completely secure when arriving in Vietnam. After the pandemic, Vietnam’s tourism sector has gradually opened and attracted many foreign tourists. Vietnam is famous for many tourist destinations, including Ha Long, Sapa, Hue, Hoi An, Da Nang and Phu Quoc, among others, which offer everything from beautiful beaches, historical structures and cultural heritage. These destinations attract many foreign and Vietnamese visitors.
The Vietnamese government has emphasized investment in tourism infrastructure such as air routes, seaports, inland waterways and highways to facilitate strong tourism development and attract more international tourists. In addition, tourist areas are receiving investment and are improved to meet the needs of international visitors.
There are many different types of tourism businesses for investment, including tourism complexes with unique experiences, resort tourism, cultural tourism, culinary tourism and sports tourism.
Real estate
With a quality land bank, great demand can be seen in Vietnam’s real estate industry. The significant growth prospects of real estate also represent an opportunity for investment. Meanwhile, real estate prices in Vietnam are quite low compared to other regional and global countries.
Real estate can be regarded as the most attractive business opportunity in Vietnam for both local and foreign investors. There is a wide range of investment projects, including.
Real estate can be regarded as the most attractive business opportunity in Vietnam for both local and foreign investors. There is a wide range of investment projects, including.
- Apartment & office building complexes in large cities
- Resorts complexes in tourist areas
- Industrial park real estate
- Agriculture & forestry real estate
F&B
With a rich, diverse, and constantly innovating cuisine, the food & beverage (F&B) industry is a business opportunity in Vietnam that cannot be ignored. In fact, Vietnamese cuisine is highly appreciated by many foreign culinary writers and personalities.
Vietnamese cuisine accompanies tourism to form a mutual economic partnership. Recently, food tours have become popular among young people and tourists. The F&B industry in Vietnam is also very popular with foreign franchise chains such as Mixue, Ding Tea and Haidilao. Moreover, Vietnamese dishes have been standardized for the menus of successful chains such as Highlands Coffee, Trung Nguyen, Bami King and Bui Pho. Bsiness opportunities in Vietnam are always available in the F&B industry. In addition, it is possible for Vietnamese brands to become known worldwide, such as what has happened with Trung Nguyen Legend and Cong Coffee.
Vietnamese cuisine accompanies tourism to form a mutual economic partnership. Recently, food tours have become popular among young people and tourists. The F&B industry in Vietnam is also very popular with foreign franchise chains such as Mixue, Ding Tea and Haidilao. Moreover, Vietnamese dishes have been standardized for the menus of successful chains such as Highlands Coffee, Trung Nguyen, Bami King and Bui Pho. Bsiness opportunities in Vietnam are always available in the F&B industry. In addition, it is possible for Vietnamese brands to become known worldwide, such as what has happened with Trung Nguyen Legend and Cong Coffee.
Retail
Retail is a business opportunity in Vietnam with a lot of potential due to the country’s economic growth and the increasing income of Vietnamese citizens. Moreover, the continuing development of the production and import & export segments significantly contributes to the development of the retail industry.
Satisfying the need for convenient and time-saving purchases, the “point of life” ecosystem model of Masan Group is a potential business opportunity in Vietnam in the future. This is an integrated service system from supermarkets, banks, drug stores and F&B outlets that satisfies the consumption needs of customers. Furthermore, the “point of life” ecosystem makes it easy to maximize revenue and save operating costs as services are rendered.
Satisfying the need for convenient and time-saving purchases, the “point of life” ecosystem model of Masan Group is a potential business opportunity in Vietnam in the future. This is an integrated service system from supermarkets, banks, drug stores and F&B outlets that satisfies the consumption needs of customers. Furthermore, the “point of life” ecosystem makes it easy to maximize revenue and save operating costs as services are rendered.
Agriculture
Vietnam's agricultural industry has long been a significant contributor to the country's economy. From the data reported by the Ministry of Agriculture and Rural Development, Vietnam's agricultural industry experienced its best growth in recent years, hitting 3.36% as farming increased by 2.88%, fisheries expanded by 4.43% and forestry increased by 6.13%. The total export turnover of the industry was more than USD 53.22bn. The country's diverse climate, fertile soil and abundant water resources make it suitable for a wide range of agricultural activities, including rice, coffee, tea, rubber, cashews and fruit. The agricultural industry in Vietnam has seen significant growth in recent years with increasing investment in research & development, the modernization of farming techniques and better infrastructure.
Overall, there are several advantages of conducting agricultural business in Vietnam. Firstly, the country's geographical location makes it a natural gateway to Southeast Asia and an excellent hub for exporting to other countries in the region. Secondly, the country has a large and growing population of consumers with a rising disposable income, which provides a ready market for agricultural products. Thirdly, the government has implemented several policies to encourage investment in the agricultural sector, including tax incentives, land lease programs and subsidies for research & development.
Overall, there are several advantages of conducting agricultural business in Vietnam. Firstly, the country's geographical location makes it a natural gateway to Southeast Asia and an excellent hub for exporting to other countries in the region. Secondly, the country has a large and growing population of consumers with a rising disposable income, which provides a ready market for agricultural products. Thirdly, the government has implemented several policies to encourage investment in the agricultural sector, including tax incentives, land lease programs and subsidies for research & development.
Renewable energy
Vietnam is focusing on renewable energy development and aims to reduce its dependence on fossil fuels. By 2030, the Vietnamese government expects renewable energy to account for approximately 32% of the total primary supply and electricity generation as laid out in the decision No.2068/QĐ-TTG dated 25 November 2015, approving the development strategy of renewable energy of Vietnam by 2030 with a vision to 2050. As a result, there are opportunities in areas such as solar power, wind power and biomass energy. Vietnam has abundant solar energy potential — especially in the central and southern regions — making it suitable for solar power development. Wind power potential is also high in coastal areas of Vietnam, providing opportunities for wind power projects. Biomass energy, which involves utilizing agricultural residue and organic waste for energy production, is another area with potential for growth in Vietnam.
The Vietnamese government has implemented various incentives and policies to attract investment in renewable energy such as feed-in tariffs, the direct power purchase agreement (DPPA) mechanism, tax exemptions and preferential land-use policies for renewable energy projects. The government also promotes research & development in renewable energy technology and is focused on improving the capability of human resources to accelerate the growth of the renewable energy sector in Vietnam. In short, business opportunities in Vietnam are very rich, diverse and attractive to both local and foreign investors with multiple potential segments.
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