When it comes to investing in Vietnams industrial sector, building relationships with local stakeholders is an important factor for success. 6. Vietnam E-Invoice: A Comprehensive Guide for You. Free trade agreements: Vietnam has signed a range of free trade agreements (FTAs) with countries around the world. Retrieved February 12, 2023, from https://hanoitimes.vn/vietnam-targets-2023-as-the-year-of-digital-data-322629.html, Vietnam targets 2023 as the year of digital data. Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence. The government has also taken steps to attract foreign investment and support the growth of domestic businesses in the industrial sector. Global Wealth Report 2023. This leaves the fear of recession in the country in the past few months behind and the country can expect more FDI pouring in the upcoming year and it is agreed by ex, Tourists Forced to Cancel Hotel Reservations and Boat, YouTube introduces new features for Windows users, Hue installs AI cameras to control violations and, Commencement of two routes connecting Long Thanh airport. "Investing in Vietnam 2023" is a publication created by financial experts at RSM Hanoi, designed to provide valuable insights and guidance to investors interested in exploring opportunities in Vietnam. In conclusion, these are the top sectors for investment in Vietnam in 2023, offering a range of opportunities for both local and foreign investors. Diversify your investment portfolio: One of the best ways to manage risks is to diversify your investment portfolio. However, there are several challenges hindering what could be a very bright future for the sector. Contact us today! How Much Does it Cost to Set Up a Business in Vietnam? . Attend industry events: Attending industry events, such as trade shows or conferences, is a great way to meet local stakeholders and learn more about the industry. Company Setup & Market Access into Indonesia: Cekindo Consulting. In this article, we will delve into the various aspects of investing in Vietnams industrial sector, including the benefits, challenges, and tips for successful investment, as well as how to get started with investing in Vietnam. Dont take our word for it. Vietnam is well-positioned to take advantage of the global shift towards outsourcing, with its low labor costs, favorable trade agreements, and growing pool of skilled workers. RSM Vietnam Auditing & Consulting Limited . By leveraging these FTAs, investors in Vietnam can access a larger market, reduce costs, and increase competitiveness. Exports declined by 8.4% year-on-year and imports fell by 7.2%, according to the World Banks report. The upcoming recession may actually even foster investment as pressure on the labour market could prevent wages to increase substantially and allow Vietnam to keep the labour cost advantage over other countries. Cultural understanding: Cultural differences can impact business practices and communication in Vietnam. Why Doing Business In Vietnam: Benefits Vs. Challenges - BBCIncorp Vietnam Briefing. Two things must be taken into account when deciding which projects to prioritize: investing country and type of project. Good time to invest in Vietnam now, says Dragon Capital - CNBC The figures are . Factory transferred in Ben Cat, Binh Duong, Selling 8.3 hectares of industrial land in Long Thanh, Dong Nai, Industrial land for rent in Ho Chi Minh City. Business Process Outsourcing Services in Indonesia. The publication also provides detailed information on investment options and strategies for both local and international investors, including legal and regulatory frameworks, tax incentives, and investment opportunities in various sectors such as manufacturing, retail, and real estate. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_6" ).setAttribute( "value", ( new Date() ).getTime() ); I have readCekindo's privacy policy and agree to Cekindo using my information provided to contact me about related content, and services. The largest export market for Vietnamese goods is the United States. Some of the key challenges include: When considering investing in Vietnams industrial sector, its important to be aware of the potential political and regulatory risks that may pose a challenge. Dr. Borer advises to prioritize FDI from countries in the region. Furthermore, Vietnams large and youthful population also offers a competitive advantage in terms of labor costs. This invariably means that the supply chain will need to expand to new areas to saturate the expanding market, namely cold chain (e.g. Attracting foreign direct investment (FDI) has always been a key part of Vietnam's external economic affairs. Closing a company is a tough decision that a businessperson has to make. In their recent study "The World in 2050", Vietnam will be the fastest growing country. However, for this process to take place smoothly and to harmonize the interests of the parties, it is necessary to support professional consulting units to connect and understand market trends. The manufacturing sector accounted for 61 percent of the total registered foreign direct investment (FDI) in Vietnam. Retrieved February 12, 2023, from https://www.vietnam-briefing.com/news/4-key-sectors-to-watch-in-vietnam-in-2023.html/, Duc, T. (2022, December 1). Analysis of the construction real estate industry. Regional Comprehensive Economic Partnership (RCEP): This FTA includes 15 countries in the Asia-Pacific region, including China, Japan, South Korea, and Australia. Vietnam is an attractive market for foreign investment in 2023 despite the recession threat. Dr Daniel Borer, Economics Lecturer, RMIT University Vietnam shares his positive forecast in the talk with the author. Cekindo can help you from the registration, finding distributors, to the representative services. Cekindo Vietnam is becoming InCorp Vietnam. According to the Foreign Investment Agency under the Ministry of Planning and Investment, foreign direct investment in the real estate sector increased by $1.85 billion in 2022, a growth of more than 70 per cent compared to 2021, and ranked second among sectors attracting such funding with capital of over $4.45 billion, or 16.1 per cent. Our services focus on HR, finance and marketing. As the middle class expands and demands higher quality healthcare services, the government is investing in new hospitals and clinics, and the healthcare sector in Vietnam is growing quickly. Vietnam signed on to a Just Energy Transition Partnership (JETP) in December of 2022. Market research helps businesses make informed investment decisions and develop effective market entry strategies. Studio defends Barbie movie after controversial map prompts Vietnam ban This includes the potential for corruption, currency fluctuations, and changes in government policies. Hanoi Times. The country offers numerous opportunities for investment in its industrial sector, including relocation from China, access to Southeast Asian markets, and leveraging highly attractive free trade agreements. Ho Chi Minh City 72408, Vietnam, Free Checklist: How to Start a Business in Vietnam. This has presented opportunities for property developers and foreign investors in the industrial real estate market in Vietnam. In May 2023, Teky Alpha JSC reported a successful funding round of US$5 million. One of the main positives in January was a renewed expansion in new export orders, with the decline in total new business softening as a result. This may include strategies such as currency hedging, insurance coverage, legal and operational risk assessments, and contingency plans. Investors in VinFast's SPAC Cash Out Most Shares - U.S. News According to HSBC, 51% of programmers in Vietnam are between the ages of 29 and 30. Most of Vietnams power plants are still based on fossil fuels, namely coal (49.7%) and oil (21.7%). Organizational Development Service in Vietnam. Under the first, the national GDP will grow 6.47%, inflation 4.08%, and export 7.21%, and trade surplus is projected at 5.64 billion USD, heard a workshop in Hanoi on January 12. Introducing the publication "Investing in Vietnam 2023" - RSM Vit Nam We provide advisory on company setup and market access into Indonesia's fast-changing investment landscape. Vietnam issues new guidance on foreign investment Opportunities and Challenges for Foreign Investors following Equitisation Plans in Vietnam, Setting Up A Representative Office in Vietnam: A Quick Guide, 5 Challenges of Accounting and Tax Compliance in Vietnam, Business Partner & Distributor Selection in Vietnam. Any articles or publications contained within this website are not intended to provide specific business or investment advice. Is Vietnam good for international trade? Its important for businesses to have effective labor relations policies in place and to ensure they are in compliance with local labor laws. These policies are designed to create a business-friendly environment and help investors overcome common challenges associated with doing business in the country. for vaccine transportation) or optimized coordination between industrial and logistical hubs. Product Registration in Indonesia: Import & Certification. This can help businesses gain local support, access business opportunities, and navigate potential challenges. Let us make your market entry process effortless and hassle-free. Foreign investors continue to invest in Vietnam significantly in 2023 Therefore, these upscale tourism accommodations present a huge investment potential. Hence, postponing the implementation of the measures from 1st January 2023 to 1st January 2024 makes sense, to avoid burdening the market additionally at this moment, and give more time to prepare for those changes. Download PDF Banking & Finance. Vietnam has become an attractive destination due to low manufacturing costs partly due to the US-China trade war. Seek Local Expertise: Partner with local experts or consultants who have a deep understanding of the local market, regulations, and business practices. Let us take a look at some of the best sectors for investment in Vietnam in 2023. Investment in Vietnam 1. Manufacturing is a key sector for investment in Vietnam, with a focus on industries such as electronics, textiles, and machinery. In December 2022, Vietnam agreed to join the Just Energy Transition Partnership (JETP). We spoke to Quyhn Le Yen, Portfolio Manager at Dragon Capital, to understand the recent developments in the Vietnamese economy, the relations with China and investment opportunities in the Southeast Asian country. From labeling & how to import products to the registration process. Andrew Harker, Economics Director at S&P Global Market Intelligence, said: Although demand conditions for Vietnamese manufacturing firms remained challenging at the start of 2023, leading to further declines in output, new orders and employment, there were some more positive signs from the latest PMI survey. Retrieved February 12, 2023, from https://www.cekindo.vn/blog/sectors-invest-in-vietnam, Industrial production plunges in January over Tet holiday. Offer value: When approaching local stakeholders, be sure to offer something of value. You are deemed to have consented to our cookies policy if you continue browsing our site. Regulatory compliance: Local experts or consultants can help navigate the complex regulatory environment in Vietnam and ensure compliance with local laws and regulations. Investors need to take appropriate measures to protect their intellectual property rights, including registering trademarks and copyrights, implementing robust intellectual property protection strategies, and working with legal experts to enforce their rights. Shelf Company: what is it & how to buy one in Vietnam. Before the pandemic, Vietnams tourism revenue reached USD 10.8 billion. Specifically, some key highlights of Vietnam's business environment include: GDP growth is at 8.02% in 2022 Strong purchasing power with a population of over 99 million people Doing Business in Viet Nam - PwC (n.d.). Personal Data Protection Decree in effect from 1 July 2023. Investment in infrastructure: The Vietnamese government has made significant investments in infrastructure development in recent years, including the construction of highways, ports, and airports. Premium Investor Visa Services in Vietnam. On 25 October, it raised the refinancing rate by 100 basis points to 6%. These intrinsic factors are further enhanced by the countrys many free trade agreements (FTAs) and rapidly changing e-commerce landscape. Payroll Outsourcing Services in Indonesia by Cekindo has been trusted by multinational & international companies, such as Samsung, Traveloka, and more. Food and Beverage Registration Services in Vietnam. ASEAN Free Trade Area (AFTA): This FTA is a regional initiative among the ten ASEAN member countries to reduce tariffs on goods traded within the region. This can help you identify market gaps and opportunities. Dont Invest in Vietnam Until Youve Read This Article (Updated for 2023). Are you planning to apply for Vietnam Work Permit Visa, Vietnam Temporary Residence Card, or Vietnam Investor Visa? Vietnams tourism sector targets to serve about 8 million foreign visitors from a total of 110 million this year, and earn some 27.5 billion USD from the non-smoke industry, according to the General Administration of Vietnam Tourism. . Here are some tips for building relationships with local stakeholders: Understand the culture: Vietnamese culture places a high value on personal relationships and trust. The Asian Development Bank (ADB) has lifted its growth forecast for Vietnam for this year from 6.5% to 7.5%, despite several economic challenges. US businesses to expand investment in Vietnam - THE VOICE OF VIETNAM According to the official, the tourism industry will continue to improve its international competitiveness in an effort to attract international visitors. Despite the impacts of the COVID-19 pandemic, Vietnam today is still seen as an emerging market belonging to the worlds most dynamic economies, offering a variety of attractive business opportunities to both domestic and foreign investors. Vietnam Investment Review - VIR document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); I have read and agree to the Terms & Conditions and Privacy Policy. Learn more about the visa options for foreigners entering the Philippines and what is the right visa for you, through this article. With its post-pandemic economic development and the growth of its industrial sector, Vietnam has emerged as a promising investment destination for businesses looking to expand in Southeast Asia or Asia as a whole. These stakeholders can include government officials, suppliers, customers, and other businesses in the industry. Be patient: Building relationships takes time, and its important to be patient and persistent in your efforts to establish connections with local stakeholders. Is Vietnam running out of steam as an EU investment hub? Plans are in place to utilize the countrys solar and wind energy resources to increase the share of renewable power generation three-fold by 2030. Vietnam Quarterly Bulletin Q2 2023: Allen & Gledhill The RSM network is not itself a separate legal entity of any description in any jurisdiction. The growth of new FDI projects in the first 6 months has kept Vietnam a leader in FDI from multinational companies. Let us know how we can help, and we will get back to you as soon as possible. document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); InCorp Vietnam (formerly Cekindo) specializes in Market Entry and Business Process Outsourcing services. Free trade agreements: Vietnam has signed several free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), which provide preferential access to a combined market of over 500 million people. Get to know how accounting services from Cekindo can help your business to grow. Immigration Indonesia: Get Your Indonesian Visa Now. It is important to understand these risks and have a plan in place to mitigate them. Retrieved February 14, 2023, from https://vietnamnet.vn/en/vietnam-business-news-february-12-2023-2109427.html, Vietnamese tech firms have room to grow | Sci-Tech | Vietnam+ (VietnamPlus). Partnering with local experts or consultants can provide foreign investors with a competitive advantage in navigating the unique challenges of investing in Vietnams industrial sector. This can create uncertainty and affect business operations and profitability. With favorable conditions, finding FDI capital for industrial real estate projects is extremely easy. One policy recommendation is to refocus trade from overseas to regional partners within ASEAN and the RCEP. However, like any investment destination, Vietnam also presents challenges such as political and regulatory risks, legal and operational challenges, cultural and language barriers, currency and financial risks, and intellectual property protection issues. It covers trade in goods and services, investment, intellectual property, and e-commerce. In Vietnam, the country faced a rise in dengue fever and the risk of dangerous emerging diseases. Markets like Australia, New Zealand or India should receive greater attention. What are the benefits of investing in Vietnam? (2023) - Investguiding In addition to providing a large pool of workers, Vietnams young and growing population also offers a significant consumer market. 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. Looking at recent insights into Vietnams online shopping community, its hard to deny the countrys spending power and the role of e-commerce in peoples lives. The number of domestic tourists was estimated at over 101 million, exceeding the figure of 85 million in 2019, when the pandemic was something in the future. Learn more about Business Incorporation in The Philippines, Visa Options for Foreigners Entering the Philippines. Doing Business in Vietnam 2022-2023 - Deloitte US Investment details. You should also consider hiring a local lawyer to review all legal documents and contracts. Exclusive: Intel weighs boost to investment in Vietnam chip packaging Understand the local regulations: Vietnam has its own set of regulations governing the industrial sector, and these can be complex and ever-changing. This would have dramatic consequences for interest rates, which could be well above 10%. These incentives include tax breaks, exemptions, and reductions, as well as access to preferential loan programs and streamlined administrative procedures. 2021 RSM International Association. One in every three Vietnamese adults don't own a bank account as of 2020. By 2024, the industry is expected to fully recover at USD 11 billion and expand to USD 13 billion in 2026. Starting an investment in Vietnams industrial sector requires careful planning and execution. Nonetheless, adding transparency, having clear and trustworthy ratings and making trading easier is an ongoing effort that still needs to happen more. Possessing a huge volume of data analyzed by MS Power BI, Savills Vietnam provides detailed market assessments based on industry variables to help investors make choices. (VOVWORLD) - Minister of Planning and Investment Nguyen Chi Dung has voiced his hope that US enterprises will become the biggest investor in Vietnam to seize every cooperation opportunity in the countries' development process on the basis of equality, mutual respect, and mutual benefits. In this section, we will discuss some tips for managing risks when investing in Vietnams industrial sector. Foreign consumers are particularly sensitive to know where and how the products they consume have been produced. Guide to Invest in Vietnam stock exchange & trading If you need any further consultancy, please kindly email us at hello@innolab.asia, Barnes, M. (2023, January 3). Retrieved February 14, 2023, from https://hanoitimes.vn/vietnam-targets-2023-as-the-year-of-digital-data-322629.html, Crowdfunding has emerged as a revolutionary method of raising capital for startups, disrupting traditional funding sources and opening doors for both entrepreneurs and investors.
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