Vietnam, with its political stability, young population, large consumer market, and deep integration into the global economy, has become an attractive destination for foreign investors. However, like any investment opportunity, doing business in Vietnam also comes with certain challenges.
Opportunities and Challenges for Foreign Enterprises Investing in Vietnam
- Growing FDI
Foreign investors are projected to continue investing heavily in Vietnam in 2024, with both registered capital and disbursed capital increasing compared to the same period last year.In the first seven months of 2024, total FDI into Vietnam reached over $18 billion, up 10.9% year-on-year.
- Priority Investment Sectors
Technology, electronics, semiconductor fabrication and manufacturing are becoming the focal points of foreign investors. These are areas where Vietnam has advantages and strong development potential.
Improving Business Environment
Vietnam is striving to improve its business environment and support workforce development, especially high-quality human resources in the fields of high technology and green economy. This helps enhance the attractiveness of the country to foreign investors.
- Incentives and Support
The Vietnamese government has been implementing incentive and support policies to attract and retain foreign investors, including upgrading economic and social infrastructure and improving administrative procedures.
Challenges for Foreign Investors in Vietnam in 2024
- Global Minimum Tax
The implementation of the global minimum tax from January 1, 2024, may erode Vietnam’s tax advantages in attracting FDI. However, it also benefits in addressing transfer pricing issues in FDI activities.
- Intellectual Property Protection Requirements
To retain and attract more foreign investors, Vietnam needs to improve its protection of intellectual property rights. This is one of the issues that foreign investors are particularly concerned about.
- Human Resource Quality
Despite Vietnam’s efforts to train human resources, the quality of human resources, particularly high-quality human resources in the field of high technology, still requires improvement to meet the demands of foreign investors.
- Administrative Procedures
The government needs to further improve and simplify administrative procedures to facilitate foreign investors. This is one of the important factors affecting their investment decisions.
- However, the above information is for reference only and is provided by our company. For more details, please contact the information below for detailed advice:
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DNP VIETNAM LAW FIRM
* Contact information:
🏢 Address: 5th Floor, No. 52 Nguyen Thi Nhung Street, Van Phuc Urban Area, Hiep Binh Phuoc Ward, Thu Duc City, Ho Chi Minh City, Vietnam.
📩 Email: info@dnp-law.com.
📞 Hotline: 037 754 4312 (Ms.Tien).
