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Vietnam has long established itself as a favorable destination for foreign investors wanting to diversify their Asia presence or supplement their China operations. In recent years, this decision has appealed to many businesses dealing with trade shocks and border closures associated with the COVID-19 pandemic. Moreover, as China steers its economy towards high-tech manufacturing, countries like Vietnam have emerged as a replacement base for lower-tech manufacturing and product assembly. In this regard, Vietnam’s investment climate stands out among its peers due to its business-friendly policies that encourage inflow of foreign capital.

Nevertheless, Vietnam is also trying to move up the regional value chain, and as such, presents a unique set of opportunities and challenges for investors. Foreign companies are advised, though, to conduct thorough pre-market due diligence or will find themselves at a disadvantage. For instance, as investors rush to Vietnam’s modernizing cities, land is becoming a premium, increasing operating costs.

In this issue of Vietnam Briefing, we discuss the importance of finding the right location for investors and outline the factors that foreign investors should consider when evaluating potential sites for investment. We highlight the important role of industrial zones and how they can play a role in overcoming some drawbacks commonly observed in the Vietnamese market. We conclude by evaluating Vietnam’s key economic regions and which industries are best suited for investment in the country.

This magazine is based on Dezan Shira & Associates’ years of experience in supporting foreign enterprises in Vietnam. For more information on how to find the ideal location in Vietnam for your investment, please contact us at vietnam@dezshira.com.