Countries are facing challenges keeping the economy on track since the global health crisis. For investors, it’s hard to find a business to bet on, considering the current risky scenario. But amid so many uncertainties, promising business opportunities in Vietnam appear attractive.
The ASEAN regional economy is growing well, despite a worldwide economic slump. Vietnam has shown rapid economic development and the ability to rebound from the pandemic’s aftermath. Here are some business opportunities in Vietnam that investors should consider.
The emerging fashion industry in Vietnam
Vietnamese consumers have always shown a strong interest in fashion, and the clothing market has experienced significant growth, with sales reaching USD 4,872 million in 2021. This makes Vietnam a highly attractive destination for businesses in the fashion industry.
As the middle class in Vietnam continues to expand and their standard of living improves, there is an increased demand for fashion products. With the introduction of advanced technology such as supply chain analysis and user-behavior analysis, companies can understand their customers and develop customer-centric strategies to improve their shopping experience.
Fintechs in Vietnam
The Fintech industry also represents big business opportunities in Vietnam. Fintechs have seen rapid growth in the country, tripling in size between 2017 and 2021. The companies offer various services, including digital payments, alternative finance, wealth management, and blockchain.
Digital payments remain the most popular area, with over 4.2 million e-wallet users, accounting for 31% of all Fintech businesses. Moreover, 94% of Vietnamese banks plan to engage in Fintech next year, indicating the sector’s potential for international investment.
E-commerce: A promising industry in Vietnam
According to a survey by Facebook and Bain & Company, Vietnam is expected to be the fastest-growing e-commerce industry in Southeast Asia by 2026. The e-commerce Gross Merchandise Value (GMV) is predicted to reach USD 56 billion, 4.5 times the value in 2021.
This is a result of a very connected country. The annual SYNC Southeast Asia research indicates that Vietnam is one of the strongest performers, with seven out of ten consumers having internet access. So, consumers don’t need to leave home to boost the economy.
Renewable Energy in Vietnam
Vietnam has pledged to achieve carbon neutrality by 2050, joining many other nations in the global effort to combat climate change by halting greenhouse gas emissions. Furthermore, at COP26 in Scotland, major coal users, including Vietnam, Indonesia, and Poland, committed to gradually phasing out coal-fired power and limiting the construction of new plants.
However, electricity consumption has been growing at over 11% per year, outpacing GDP growth. This increasing electricity demand has fueled a shift towards renewable energy and away from coal-fired power. For example, Vietnam generated 5% of its electricity from non-hydro renewable sources in 2020, according to Techwireasia. The sector offers excellent business opportunities in Vietnam but also represents a chance to tap into the local market and expand globally.
Visa for business in Vietnam
Did you find some perfect business opportunities in Vietnam? If you did and you would like to travel to the country, you must obtain a Vietnam eVisa. The government has offered this practical electronic visa since 2017. It allows travelers to visit Vietnam for tourism or business, and the application is made online. Just apply with iVisa and in a few clicks you will receive the visa in your email!