In recent years, many companies have turned to Vietnam for business opportunities due to several factors such as lower costs and an attractive business environment. Vietnam also serves as a hedge against unpredictable scenarios that may affect supply chains in China.
For example, Samsung has invested in Vietnam since 2008 with an estimated investment capital of $18 billion USD. Four out of nine of their manufacturing facilities are located in Vietnam.
The reason why Vietnam is so attracting manufacturing companies
One significant factor is labor cost. The cost of labor in Vietnam remains significantly lower than in China. Net factory labor cost in Vietnam is $2.99 per hour, compared to $6.50 per hour in China.
One major example of a company that has shifted its manufacturing from China to Vietnam is Nike. In 2021, 51% of Nike’s shoes were made in Vietnam while only 21% were made in China.
The US – China Trade War Impact
Which began under the Trump Administration and continues under the Biden Administration, is another factor driving companies to relocate to Vietnam. Increased tariffs and regulations have made Chinese goods more expensive. Presenting a great opportunity for Vietnam to become a global player in manufacturing as it moves up the high-value manufacturing chain.
Check out this video to hear Attorney Ken Duong share his insights on the trending business opportunities in Vietnam!
Learn more about Business Opportunities in Vietnam
We made many videos about doing Business in Vietnam, from retail market to real estate and even how to invest in Vietnam! Check out our YouTube channel for more Vietnam news. But if you want to apply for your investor visa, feel free to contact us.
