Why Invest In Vietnam?

Hey, guys. In this article, I am going to tell you why you should invest in Vietnam. It’s a very nice place because all around this river, you have during the night a lot of restaurants, a lot of street food sellers, and you can relax and enjoy some music and have some beers. And this is exactly the perfect place to illustrate that. Obviously, I won’t go during the night because it’s kind of very noisy.  So this article will be split into three parts.  So first we’re going to talk about the infrastructure. Secondly, we’re going to talk about the demographics. And finally, we’re going to talk about economics.

Important Things to Consider

So it’s from my own perspective, three important things that you need to put into consideration as criteria. If you want to invest in a new country. Will this country be sustainable with these countries be in the long run quite open for the foreigners. And basically ease this country enough trustworthy for the future. Right. So let’s jump into it. In the infrastructure, we have a lot of things going on. So here in Saigon (Ho Chi Minh City), it’s the second biggest city in Vietnam. It’s really booming and changing so fast! Even as an ex-pat (living here for 3 years) If you come here, you will have places that change almost every month. So let’s say you come here and after three months I am pretty sure there will be a new restaurant. They would have destroyed a building and they would construct a new one within a few more weeks. You have a lot of condominium kind of popping up everywhere. A lot of real estate projects. And so obviously between the different districts, you have a lot of new infrastructures and new roads.

So the bridges and highways are supposed to connect the different districts. This one is actually between Thủ Thi êm and district one. And the goal of these highways to be able to link in the future the new airport that they are building in Saigon (Ho Chi Minh City) Then there is also another thing that is the current metro that they are building. See the picture which I have taken.

district_one_

So the metro is currently building by a partnership between Vietnam and Japan. And the one in Hanoi is a partnership between Chinese companies and Vietnamese companies. There is a little bit of competition between those two big projects. Both of them want to have the freshest retro line, finish the earliest, the nicest and most modern one, Both parties want to have the fastest. Basically, there is a small competition. But what you need to get from this is that a city that is just starting to have a metro. You will be obviously very growing, have potential and opportunities in the future.

starting_to_have_a_metro

Economic zones

In other aspects of the country, you have also a lot of economic zones (free-trade). So in the north of Vietnam for instance, you have an area called Văn Đồng. So it’s an area near Hải Phòng. And in this area, they basically have already and will keep hosting thousands of new factories because of the current trump war tariff. There are a lot of companies that are currently coming to Vietnam and many Chinese investors intensively moving some of their factories to Vietnam to install new facilities and relocate. You’ll have a lot actually in textile, decoration, wood processes, and wooden furniture. You have a lot of factories that are currently manufacturing, producing in Vietnam, and exporting to Europe and into the US. So obviously, in all those economics areas, you have a lot of incentive that has been provided by the governments to be able to attract foreign investors. Also, a new airport that is currently under construction … or it will be starting soon because I think right now they are still kind of keeping the lands they are about to build it in Long Thanh. And so over there, this is where the metro lines are going, the same direction. And there is already a lot of real estate projects following this direction and many foreign (Asian) investors are focusing and anticipate a lot the growth of this area. Because obviously when you look at all the cities in the past that have had a subway coming, there was a big growth after.

Best Infrastructure

And because it is the second biggest city in Vietnam, and when you compare this city to other biggest cities in Thailand, like Bangkok and even Malaysia. I mean, all the different big cities in the Southeast Asian countries, you see huge differences and gaps. So in terms of growth and in terms of opportunities: Vietnam, will be one of the leaders in the region. if you look several months or years ahead You have a lot of highways as well that are currently under the building. so the previous one I show you before was between the second district and the first one, but there are also in District 7, District 2, District 9, you have a lot of different highways and the big roads that are currently under construction. If you drive a little bit in this direction up to District nine, you will see big highways. It looked like a little bit what you’d get in Bangkok nowadays. So there they are starting to prepare all the roads to be sure they can carry a huge amount of people. So that was a little bit about the infrastructure.

district_7_2_9

Now, what about the demographic?

So in Vietnam, you have around 100 million inhabitants in the country and a big city like that, it’s almost 10 million inhabitants. So the city is very big and is very spread and has extended suburban areas. So what about the demographics? You have 40 percent of the people, they are under 25 years old. So you can guess that this is a huge employment force for factories, to produce and for an outsourcing company, for instance. So you’ll have a lot of investors that are betting on the country also because they have a very young population. And because the Vietnamese people, are in general, you know, here if you have been to Vietnam before, they are super into spending and consuming. They like to try different new brands every time there is a new place opening. There will be the first one to have a look. But at the same time, it’s you have a sort of trend, a bubble effect. See things, for instance, all the Taiwanese bubble tea was trendy before. You will have to go to try and obviously after a few years, it’s less trendy. And after a few months, you won’t see anymore, many people going to those old-famous brands. So it doesn’t mean that it’s very easy to do business, especially in the food and beverage industry.

I.T. workforce in Vietnam

You have a lot of very good I.T. universities. So they are able to provide a very good workforce for the outsourcing company and Vietnam. You have a lot of I.T. companies, like that’s the case in Saigon, in Danangas well, and I guess, in Hanoi. And then in all those big companies, they’re going to outsource the work of foreign companies. So let’s say you have a customer that is overseas and you will have here all the IT developers who will be in charge of coding and developing the software.

Why one should move to Vietnam?

Vietnam

One of the main reasons is that here you have a lot of fresh graduated, fresh mindset people. So you have a huge entrepreneur community. So if you get started in your entrepreneurship. If you want to build a project, if you want to build a team, here you will be able to find it and being able to easily connect to new people, I don’t know, find an IT guy, hire a designer here, you can find that kind of people easily. You have a lot of events, a lot also about digital marketing. So it’s very easy when you go there to connect, to make a small professional network. And then after that, to be able to launch a project with them. And then one statistic in 2025, they expect that Asia will be the Third the biggest consumer in the world, because here many people start, as I say, very young, have living expenses they are able to afford more goods, the middle class increase their standards of living. And obviously, because the salary is going up and up and people have more and more are more able to buy imported goods. Then in the future, Vietnam will be a good place (because of the location in southeast Asia) to settle and to set up a business, because you can at the same time have the growing local Vietnamese market, the neighboring countries and also to export thanks to the low cost of labor. Indeed it’s the perfect condition to manufacture, produce, and export overseas from Vietnam. You have already all the infrastructure.

 

 

mike

Mike is a techie blogger and interested in technology stuff from his childhood days. Mike is also the full-time gadget reviewer and in part-time he loves to play football and a regular fitness freak. Connect with him at mike@factscoops.com

Leave a Reply

Your email address will not be published.