Vietnam is one of the countries with the highest economic growth rates in the world. This comes from the stability of the economic market as well as the promotion of investment and development by the government. Recently, Vietnam has signed many free trade agreements such as EVFTA (in 2018), UKVFTA (in 2020). As a result, the export of goods to European countries is favorable, leading to expanded Vietnam investment opportunities. Let's check out the following article to grasp potential investment opportunities in 2022.
1. Vietnam investment opportunities from 2020 onwards
According to the report of KPMG about Investment in Vietnam in 2021, the GDP growth rate is nearly 2 times higher than in 2020. Inflation is effectively controlled at 2.1% compared to 3.2% in 2020. Vietnam becomes a country that has strongly attracted foreign investment capital after signing the 2018 EVFTA trade agreement. One of the benefits that this agreement brings is the reduction of tariffs and elimination of export turnover to major markets. In addition, the EVFTA also significantly improves commercial law, environmental protection, and improves market access in Vietnam. This opens up countless Vietnam investment opportunities from 2020 onwards in many fields and industries.
2. Potential investment fields in 2022
a. Industrial zone investment
The industrial zone is a hot market when enterprises investing in industrial zones entitles many incentives from the government. Specifically, newly established projects in industrial zones receive the corporate income tax rate of 20% for the first 10 years of operation. Besides these Vietnam investment opportunities, the trend of applying artificial intelligence and 4.0 management technology creates favorable conditions for many foreign investors to invest in industrial zones in Vietnam without direct management. Capturing the excitement of the market, industrial investment units promote the construction and leasing of factories. In particular, with the advantage of abundant skilled human resources, the Northern region
is becoming an attractive place for foreign investors to set up production bases.
b. Electronics manufacturing investment
Electronics is the key industry, accounting for a high proportion of the structure of the whole industry. The electronics industry in Vietnam has a relatively fast growth rate, ranking 11th in the global market. Electronic manufacturing in Vietnam includes manufacturing products such as phones, tablets, televisions, monitors, and office computers. By 2025, to catch up with the trend of 4.0 technology applications, electronic manufacturing enterprises will prioritize the production of automation equipment, software development, and digitization services. According to forecasts by the Asian Development Bank (ADB), the share of exports of electronic products will increase during and after the pandemic because of the increased demand for providing means of remote work and communication. Therefore, Vietnam investment opportunities especially in the field of electronic manufacturing is quite promising in the near future.
WHA Industrial Zone 1 – Nghe An
c. Private educational institution investment
In addition to public education, the Vietnamese Government creates Vietnam investment opportunities by encouraging the expansion and strengthening of the size of private educational institutions. The continuous development of the information technology field has led to the growth of education sector investment of many enterprises in the direction of educational technology (Edtech). According to statistics, the total investment capital of education startups in 2020 reached 451 million USD, showing that this is still a field that attracts many investors. In the situation that the pandemic has not ended, the trend of online learning is still the most optimal and convenient choice. Therefore, in the coming years, the establishment of private educational institutions that combine technology applications will be a fertile ground for investors to earn good profits . In addition, the development of educational institutions also contributes to improving the qualifications and skills of employees in Vietnam. Employees will be improved skills and access to information technology that will accelerate the digitization process at enterprises.
WHA is the world class provider of industrial real estate solutions as well as industrial infrastructure and utilities with more than 33 years of experience in Thailand. WHA Industrial Zone 1 – Nghe An is located in North Central Vietnam, with an area of 1,850 hectares. Enterprises investing in production in Nghe An will receive many tax incentives such as a special tax rate of 10% for 15 years. In which, enterprises are entitled to CIT exemption for the first 4 years and 50% tax reduction for the next 9 years. Taking advantage of Vietnam investment opportunities with the professional and dedicated support of WHA, investors will optimize costs and feel secure when doing business.