Vietnam initiatives to promote foreign investment in different industry

Vietnam’s investment market is a gold mine waiting to be tapped. Most industries welcome 100% foreign capital, opening the door wide open for international investors. Although some sectors require cooperation with domestic partners, the overall outlook remains extremely bright. This guide will introduce the top potential investment sectors in Vietnam, providing a roadmap to help businesses navigate this dynamic market. From technology to tourism, manufacturing to renewable energy, we will analyze the most attractive investment opportunities and provincial initiatives to promote foreign investment that contribute to Vietnam’s special appeal.

1. Information Technology (IT)

With key government agencies supporting FDI, high-quality human resources and a growing digitalization
trend, Vietnam’s IT industry is on the rise. This is an ideal environment for investors looking for profitable opportunities.

The IT services market in Vietnam is expected to reach USD 2.07 billion by 2024, with IT outsourcing accounting for USD 0.70 billion. The industry shows no signs of slowing down in the future, with analysts predicting a robust compound annual growth rate (CAGR) of 11.51% from 2024 to 2028, expanding the market to USD 3.20 billion by 2028.

Key investment areas include software development, hardware manufacturing, cloud computing, artificial intelligence (AI), blockchain, fintech, e-commerce, cybersecurity, and smart city solutions. For IT professionals and companies looking to invest, Vietnam offers a unique combination of technical talent, cost-effectiveness, and recent policy changes to attract foreign investors. The country’s strategy to promote digital transformation across sectors further increases the opportunities.
 

Recent policy changes to attract foreign investors

2.  Import and Export

Vietnam has established itself as a global trade powerhouse with impressive export performance. In recent years, Vietnam's total merchandise trade turnover reached US$238.88 billion, up 15.2% year-on-year. This growth underscores Vietnam's importance in the global supply chain.

Main export products include textiles, electronics, machinery, footwear and agricultural products. Each sector capitalizes on Vietnam's unique strengths, from a skilled workforce to high production capacity.

The import and export sector offers many opportunities for investors, such as integrating supply chains, taking advantage of free trade agreements, investing in logistics and infrastructure, providing value-added services and implementing technology solutions to improve efficiency and traceability.

As Vietnam continues to strengthen its position in global trade and tax incentives and support for FDI enterprises, investors can capitalize on the complexities of international trade to reap huge profits. The country’s strategic location, free trade agreements, and ongoing infrastructure development make Vietnam an attractive base for companies looking to optimize their global supply chains.

3. Retail and e-commerce

Vietnam’s retail and e-commerce industry is experiencing strong growth, driven by rising disposable incomes and rapidly increasing internet penetration. The Vietnamese retail market is estimated to reach USD 276.37 billion by 2024 and is expected to expand to USD 488.08 billion by 2029, representing a compound annual growth rate (CAGR) of 12.05% over the forecast period.

Despite the huge growth potential, it should be noted that e-commerce is currently dominated by large players such as Lazada, Shopee, Tiki and Sendo. These platforms have strong market share and brand recognition.

For investors and entrepreneurs looking to enter the sector, here are some strategies that can help create a successful niche:

• Focus on specialized product categories that are not yet served by large platforms
• Integrate online and offline experiences to provide a seamless customer journey
• Explore innovative e-commerce models such as subscription-based services or social commerce
• Tailor-tailor services to specific regions or demographics in Vietnam
• Differentiate through superior customer service, personalization, or unique delivery options

Tax incentives and support for FDI enterprises

As Vietnam’s retail and e-commerce sectors continue to grow and key government agencies supporting FDI, adaptability and innovation will be key to success. Investors should carefully analyze market trends and consumer behavior to identify promising niches in this competitive landscape. Investing in Vietnam now could yield huge returns as the market matures.

4. Food and Beverage (F&B)

Vietnam’s food and beverage (F&B) industry is undergoing rapid expansion, driven by changing consumer preferences, urbanization, and rising disposable incomes. The F&B market is expected to reach USD 35 billion by 2024, growing at an impressive CAGR of 10%.

Investment opportunities in the F&B sector span across categories, including food processing, food delivery, food services, and beverage manufacturing. Each of these sectors has its own growth and innovation potential.

In the food processing sector, the focus is on modernizing production facilities, developing value-added products, and expanding export-oriented processing. The food delivery segment is witnessing investments in last-mile delivery networks, AI-driven logistics optimization, and innovative models such as cloud kitchens.

The foodservice industry offers opportunities to introduce international culinary concepts, develop healthy and organic food chains, and invest in fast-casual dining formats. In beverage manufacturing, there is an increasing demand for functional beverages, non-alcoholic alternatives, and premium local beverage brands.

As Vietnam’s F&B industry continues to grow, investors should focus on innovation, quality, and sustainability to capture market share in this competitive landscape. Understanding local tastes while introducing international concepts can create unique value propositions for Vietnamese consumers.

While the investment potential in Vietnam is attractive, it is not without its challenges. Understanding the market entry strategy and understanding the legal framework can be difficult for foreign businesses. Faro Vietnam Compliance Guide for Market Entry and Licensing will be a guide to help businesses navigate this exciting journey.

 With our in-depth knowledge of the Vietnamese business environment and practical advice, we can help businesses optimize their investment in this promising market. With the right partner, organizations are not only investing in a country, but also in future growth and opportunity.

>>>Read more: Future FDI trends and forecasts for Vietnam 2025

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