return icon

Vietnam’s market size attracts foreign investors

By the end of February 2022, the registered capital for project adjustment of foreign investors in Vietnam has increased by US$3.59 billion, a year on year increase of 123.8 percent.

 Moreover, foreign investors’ registered capital and share purchase value reached $769.6 million, up 41.7 percent over the same period last year. Explaining this issue, many businesses affirmed that Vietnam's market size is attractive to foreign investors.

Illustrative photo

Talking about business activities in Vietnam, President and CEO of Siam Cement Group Roongrote Rangsiyopash, said that in the last three years, SCG's sales revenue has always reached impressive milestones. Specifically, sales in 2019 reached VND29,516 billion (US$ 1,271 billion) while it was VND26,574 billion (US$ 1.144 billion) in 2020. In particular, in 2021, despite the difficult economic situation in Vietnam, SCG's sales in Vietnam reached VND35,001 billion (US$ 1,526 billion), up 32 percent over the same period last year.

Mr. Roongrote Rangsiyopash revealed that SCG's sales in Vietnam mainly come from the sales of newly merged businesses such as Vina Kraft Paper Company Limited (VKPC), Plastic Company Limited - TPCVINA chemicals, as well as export sales from Thailand and Southeast Asian countries to Vietnam. Particularly in 2021, the group's total assets was supplemented by the operation of Long Son Petrochemical Company Limited (LSP). Currently, SCG's total assets in Vietnam reach VND146,794 billion ($6.442 billion).

Furthermore, many Japanese enterprises have stepped up efforts to accelerate production expansion as well as opened more stores to sell Japanese goods in the Vietnamese market. Mr. Hirai Shinji, Chief Representative of the Japan Trade Promotion Organization (JETRO) in Ho Chi Minh City, said that in the domestic market, the market size of 100 million people with income levels having been gradually improving in recent years as attractive to the non-manufacturing industry.

Currently, the Japanese Government has ranked Vietnam as the top five most attractive markets for retailers. Therefore, in the next one to three years, businesses in industries such as retail, seafood, agricultural products and real estate, resorts, health care in Japan will flock to the Southeast Asian country.

Simultaneously, enterprises in the processing and manufacturing industry are constantly expanding their existing investment scale in Vietnam to take advantage of tax rates and increase their ability to export to markets that Vietnam has signed Free Trade Agreement (FTA).

In 2021 alone, 59.7 percent of Japanese enterprises in Vietnam used FTA/EPA (Vietnam - Japan Economic Partnership Agreement), an increase of 1.3 points compared to the previous year. Japanese enterprises in Vietnam often use FTA/EPA with Japan and ASEAN countries, half of them use FTAs for import and export to the EU. 


HUBA Vice Chairman Nguyen Ngoc Hoa said that currently, domestic enterprises face many challenges including an increase in the prices of raw materials and fuel affecting the other products' prices, the service and logistics industries are still disrupted due to the impact of the epidemic. All these factors negatively affect the competitiveness and growth of businesses. In order to support businesses, the Ho Chi Minh City Business Association will actively contribute ideas and consult policies on laws, decrees. Along with that, local administrations will work directly with businesses to understand businesses’ difficulties especially those with long-standing problems to help them remove.

Currently, Vietnamese products are present in 200 countries and territories and 50 countries and territories have been identified as traditional and strategic export markets.


More than 60 percent of 1,400 Japanese enterprises operating in Vietnam alone confirmed that business profits in 2022 would be improved and more than 55.3 percent of enterprises said they were planning to expand the scale of investment and production in Vietnam within the next one or two years. Compared with other countries and regions, Vietnam is among the top choice in Asean, after India, Bangladesh, and Pakistan.

According to the Ministry of Planning and Investment’s latest report, foreign direct investment capital realized in Vietnam in the first two months of 2022 increased compared to the same period last year. However, many domestic enterprises are concerned that the strong investment from foreign enterprises through capital contribution and share purchase may affect domestic enterprises.

Because from 2020 until now, many domestic businesses have been exhausted because of the epidemic and the pandemic fatigue has lasted until the beginning of this year, so foreign enterprises are easy to acquire or creating competitive pressure to be forced local businesses to leave the market.

The coronavirus pandemic has had a devastating impact on many small businesses, forcing hundreds of thousands of them to shut down. Only in the first two months of the year, nearly 45,000 businesses have shut down. Previously, in 2021, more than 100,000 businesses were closed or dissolved.

Faced with this situation, many businesspeople believe that, on the one hand, the Government should improve the investment environment to increase the ability to attract foreign capital flows, but on the other hand, the government should create more favorable conditions for domestic enterprises to recover and develop.

Vice Chairman of the Ho Chi Minh City Union of Business Associations (HUBA) Nguyen Phuoc Hung said that businesses recommend to authorities to quickly tackle these matters namely complicated administrative procedures, the incomplete legal system and the obscure operation. Worse, enterprises still suffer from unreasonable requests from authorities to pay fines.

Last but not least, the complicated tax system and tax procedures lead to unreasonable requirements in tax and customs inspection as well as fines beyond the prescribed level. In particular, businesses are very frustrated because they have to pay too many unofficial fees. 

Source: Sai Gon Giai Phong

Foreign investment to flourish post-pandemic

Foreign investment to flourish post-pandemic

Analysts all have optimistic forecasts about cash flow to Vietnam in 2022 and upcoming years after a year of net withdrawals.


Vietnam needs to improve human resources in digital age: World Bank

To reach the goal of becoming a high-income country by 2045, Vietnam needs to quickly improve the quality and quantity of its human resources.

Vietnam’s GDP rises by 13.67% in third quarter: statistics office

Vietnam’s gross domestic product (GDP) grew by 13.67% in the third quarter, according to the General Statistics Office (GSO).

Ministry of Culture demands strict supervision of beauty contests

Culture, Sports, and Tourism Minister Nguyen Van Hung has signed a directive strengthening state supervision of a variety of cultural and artistic activities, including beauty pageants and modelling contests.


Vietnam to become “new Asian tiger”: Italian journal

Vietnam to become the worlds chip production center

In the first eight months of this year, phones and electronic components have the most prominent export turnover in our country, reaching nearly 40 billion USD.

Currency stable amid fresh Fed hike

Despite the US Federal Reserve’s latest interest rate hike, the Vietnamese currency has seen only limited depreciation when compared to the currencies of its regional partners.

Typhoon Noru causes property losses to central Vietnam

Super typhoon Noru weakened into a tropical depression after entering the central region of Vietnam Tuesday night, damaging houses and uprooting trees.

Vietnam among world’s best performers in digital banking: Official

Vietnam is among the world’s best performers in digital banking, with around 15 trillion VND in total poured into digital transformation, said Le Anh Dung, Deputy Director of the State Bank of Vietnam’s Payment Department.

Vietnam to eliminate dog-transmitted rabies deaths by 2030

Vietnam needs to adopt lessons learned and work closely with local governments to ensure fewer deaths from rabies.

Huge profits expected from industrial real estate sector

Many businesspeople are pouring money into industrial real estate projects amid Vietnam’s macroeconomic stability and its position as a favorite destination for foreign investors.

3.8 million hectares of rice will be under open plan, not fixed: minister

Vietnam’s agriculture is experiencing a restructuring in order to increase seafood and fruit production, and to decrease rice production.

Interest subsidy package and tourism development receive VND18.5 trillion

The prime minister has decided to provide extra funding to the tourism development fund and the preferential credit package access to soft loans with an interest rate discount of two percentage points.

State Bank of Vietnam drains VND57.6 trillion from market

The State Bank of Vietnam (SBV) withdrew a net amount of VND57.6 trillion from the market to keep liquidity in the banking system scantly sufficient, which is an apparent move to buoy interest rates.

Vietnam grosses US$77 billion from phone, component, and electronic exports

Vietnam raked in approximately US$77 billion from the export of phones, components and computers, electronic products and spare parts during the opening eight months of the year, according to the Ministry of Industry and Trade.

Vietnam invests nearly US$400 million abroad over nine-month period

Vietnam’s new and adjusted investment capital overseas during the initial nine months of the year reached nearly US$398.3 million, according to details given by the Ministry of Planning and Investment.