Vietnam is a very suitable and profitable place for your business to grow. The open economy of Vietnam has many advantages like the strong growth rate of the economy, Government support, infrastructural development, cheap labor, skilled workforce and low cost of developing a business, etc.
Vietnam is one of the leading countries now considered a strategic location for starting a business. Therefore, you will be able to set up your business almost hassle-free. Moreover, it is considered as one of the fastest-growing economies in the South-East Asian region.
What are the Advantages of Doing a Business in Vietnam?
Let us discuss the factors that make Vietnam a preferred location to start a business.
According to the World Bank, in the last 30 years, the economic growth of Vietnam has been remarkable. Basic services, as well as the standard of education, have improved in the country. There has been the rapid growth of industrialization in Vietnam, which makes it a favorite destination for investment.
Vietnam has several trade agreements like the AFTA, EU-Vietnam FTA, and CPTPP, which marks its positive presence in the global economy. This openness has invited several foreign investors in Vietnam.
Vietnam is strategically located next to China and parallel to the sea trade route of Asia. This location is in the heart of the Asia Pacific area. This is very important for the investors and they find Vietnam very attractive for investments.
The Government of Vietnam has come up with several improved legal and institutional measures so that the investors find it attractive enough to come and invest in Vietnam.
As per the World Bank, approximately 70% of the population of Vietnam is in the age group of below 35 years. This means a larger working population and most of them are literate. The Government has introduced different training schemes for the working population, which makes the majority of the workforce skilled, ensuring the easy growth of the business.
The economy of Vietnam is continuously growing. It is one of the fastest-growing economies among the ASEAN countries. Along with that, the economy is also stable, which is an advantage for investors.
The cost of labor is cheaper in Vietnam compared to its neighbour like China. This is a very important and attractive feature for investors and business owners.
Higher Productivity of Labour
The labor force of Vietnam also has a higher productivity rate, which adds to the profit margin of the business enterprises.
The infrastructure of Vietnam is very improved. Moreover, the Government is focussing more on improving it and therefore there are high investments in infrastructural facilities like highways, ports, etc. This is also a plus point for investments.
Now, it is clear that Vietnam can be a very good business destination for you. Let us discuss the prospective and popular business ideas in Vietnam.
List of 30 Most Profitable Business Ideas in Vietnam
Small Scale Business Ideas in Vietnam
Vietnam is rich in agriculture and exports several items like rice, coffee, cotton, peanuts, rubber, sugarcane, etc. Besides these items, there are many other items like fruits, vegetables that you can process and sell to the customers and earn profits. You can even export them.
You can do the business of agricultural processing by having your farm, and growing produce. Alternatively, you can buy them from farmers and processes. Just one thing; you have to do good research on the local demand as well as export potentials of processed food.
2. Furniture Making & Remodelling
Vietnamese are very fond of furniture. They regularly buy furniture and remodel their house and office with new furniture. If you have a good idea of furniture making and design and decoration, you can earn good profits from the furniture-making business in Vietnam.
Vietnam is a big exporter of garments. Vietnamese cotton is also of good quality. That makes the business of textiles and garments a popular business and a lucrative one for you.
You can do the trading of textiles and garments. Otherwise, you can set up your garment factory. However, you need to have a good idea of the clothes and the garments you are making. Besides, do good research on your target client and make your business plans accordingly.
4. Cosmetics & Detergent
The demand for beauty products is rising in Vietnam, as the economy is rising and the population has a large percentage of youth. This is your excellent opportunity to earn good profits from this popular business idea in Vietnam.
Detergent making is among the most popular business ideas in Vietnam. There is a steady demand and people always look for new and unique products. Therefore, you can do good business from manufacturing detergent.
However, before investing, do good research on the demand, type of product you want to go for and your target clients in both the businesses of cosmetics as well as detergents.
Vietnamese love to go to different kinds of restaurants to eat out. You can start a restaurant with good décor serving quality food. It can be local Vietnamese food, or you can serve foreign food too. A restaurant of any size or type is a popular business idea in Vietnam.
The bar also has a good demand and thereby a good business opportunity for you. However, remember that there are certain government rules and regulations regarding the opening bar. Be very particular in following the regulations to avoid any legal complications.
6. Real Estate
Real Estate business is now a very popular business idea in Vietnam as the country is developing and several immigrants and expatriates are coming to this country. You can start your real estate business in Vietnam and expect a good profit.
You can build properties and put up to sale or you can buy properties and resell them. The real estate has a very good demand. You can also be a property manager or a real estate agent. Since real estate is a huge field, you have to be careful in choosing the slot of your operation.
Vietnam is a beautiful country with a distinct culture and attracts tourists from different parts of the world around the year. That is why tourism is a popular business idea in Vietnam.
You can open your travel agency and organize different types of tour packages for the tourists. Vietnam is full of places with natural beauty and there is no dearth of tourists here. Therefore, you are bound to make profits.
Do good research on the places and the culture of the country so that you can attract tourists and arrange a pleasant trip for them. The local cuisine is also very famous and does not forget to add them to the tour packages.
In case you want to go to hotels or guesthouses, you have to go through the real estate rules and regulations.
8. Car Dealer
The demand for cars is on the rise in Vietnam, and therefore car and associated dealing is a very popular business idea in Vietnam. You can deal with new cars or used cars, both have good demand.
You can also do car renting business and car spare parts and servicing business. Motorbikes are also popular in Vietnam. So opening a bike parts store is also a good business idea.
The growth of export-centric manufacturing has given rise to good demand for logistic business. You can start your logistics business in Vietnam with the help of a few rented delivery trucks to start with.
In this business, you have to grow your contact network very well and maintain the schedule. Many companies in Vietnam do not have their logistic unit, but they need such service. Therefore, this is your opportunity to grow the logistic business.
Export is a very popular business idea in Vietnam, the country export important items like rice, coffee, crude oil, rubber, seafood, etc. You can sell these items to international buyers through different e-commerce websites.
You can also start your business as a freight forwarding agent, forwarding manufactured goods to the buyers. As a freight forwarding agent, you can do business on a local level as well as at the international level.
In this business, you must have a good network with different carriers who will carry the goods to your customers.
Vietnam has many small-scale business ideas that are popular as well as profitable for you. Let us discuss them.
The bakery is a popular business idea in Vietnam as it has a very good demand. You can sell different types of bakery items and earn good profits.
If you know the art of bakery, you can start your bakery business from home and sell in the neighborhood. You can also start a small bakery shop at your home if you have space.
Make a thorough research of the items in demand in your neighboring areas. You can also introduce new bakery items for a change. Organize small food festivals in your area, and invite people to taste your exclusive items.
You can also start a bakery class and teach the interested people, both young and seniors to learn the art of bakery.
12. Laundry Service
In the growing economy of Vietnam, people are busy and need the laundry service in their day to day lives. Therefore, you have a good opportunity for growing your laundry business.
If you have space, you can start your laundry and dry cleaning business from home. Make a good research on the demand in your nearby locations and your competitors.
Try to give some distinct advantages in your business like free home delivery and special discounts at a different time of the year.
13. Electronic Repair
People of Vietnam use different kinds of electronic goods and gadgets. These also require servicing and repair. Therefore, electronics repair can be among the most lucrative business ideas in Vietnam.
You can start the business from your home. If needed, you can also go to your clients’ place for repair of certain things like the washing machine or AC.
Before starting the business, do thorough research on the population of the area and the extent of demands for repair.
14. Home Cleaning
Home cleaning has become quite a popular business idea in Vietnam. If you are a good cleaner and have an eye for perfection, you can start this business.
You can start with domestic cleaning in the neighborhood and scale up your business by doing office cleaning jobs. You can employ people under you, but you have to be careful and confident about his capability and efficiency.
15. Haircut and Beauty services
The beauty business is an all-time popular business idea and Vietnam is no exception. You can do this business if you are a trained beautician. It has a good demand not only among women but also among men.
You can provide services like haircuts and special beauty care services like facials, hair styling, etc. Always try to give value-added service in your beauty business to attract more clients.
16. Property Supervisor
The business of Property Supervisor is popular in Vietnam. Many people in Vietnam own properties but do not have the time or intention to supervise them. This is a scope for you to grow your business as a Property Supervisor.
You can do this business from home. You need to visit the property regularly, collect rents, pay bills or taxes of that property. You will also have to submit reports regularly to the owner of the property. You will get a good fee for your services.
17. Marketing Services
The growing economy of Vietnam is characterized by the growth of different kinds of enterprises. Most of them need an efficient marketing service to keep pace with the economy and earn profits.
In this scenario, marketing services is a popular business idea in Vietnam. As an independent Marketing Consultant, you can provide an effective service to the organizations by providing analysis of marketing trends, factors for the generation of demand, consumer patterns, changing preferences, etc.
This is a good business opportunity for you. However, you need to have a thorough knowledge of the market and its different factors.
18. Software Development
Vietnam is still not very advanced in the field of Software Development. If you are a software developer, you can start this business of software development and it can be done on a small scale, even from your home.
You can develop different need-based software for different types of organizations growing up in Vietnam. This can be of great help for the organizations and has the potential among the most money-making business ideas in Vietnam.
Vietnam has a rich collection of handicraft items. Selling handicrafts items can be a very popular business idea for you. If you are a skilled craftsman, you can make things and sell. Otherwise, you can procure handicraft items and sell them with good profits.
The famous handicraft items of Vietnam are the famous conical hats, pottery, handmade silk, ethnic textiles, calligraphy, handmade ceramics, paintings, handmade paper, lacquer arts, eggshell arts, etc.
These have a great demand not only within the country but also among tourists around the world. You can open a store of handicraft items or sell them to the tourists or through e-commerce sites also and earn good margins.
20. Night Club
Home Based Business Ideas in Vietnam
In the expanding economy of Vietnam, the education sector is also growing very fast. The parents aspire their kids to get admitted to foreign universities and that is why they prefer tutors. Therefore tutoring is a popular business idea in Vietnam.
If you are a qualified person, you can start the business of tutoring children or high school students from home. There is also a good demand for English teaching. You can also start English teaching classes.
22. Home Daycare Business
Parents in Vietnam like any other countries are looking for good home daycare services. If you are the one who loves kids can start this business at home.
23. Party Planner
Event enthusiasts can opt for this business. The demand for event and party planning services is growing in Vietnam. Read our article on the steps needed to start a party planning business.
24. Fitness Trainer
Are you a fitness trainer? Fitness trainers presently have a good demand among Vietnamese people.
25. Interior Designer
With the growth in the real estate market in recent years, the scope of interior decoration business has grown in good proportion in urban cities of Vietnam. If you have the experience, starting an interior decoration business is worth considering.
26. Product Sourcing Agent
If you have a good network of sellers, working as a product sourcing agent can fetch good returns. You can start this business operating from home.
27. Property Supervisor
There is a huge demand for affordable accommodation facilities in Vietnam at present. People having good communication skills can make good money.
28. Consulting Services
As more and more foreign companies are entering the Vietnam market, the need for consultants is on the rise. There are various types of consulting services you can offer based on your skills and expertise.
29. Hair Stylist
Looking to start a beauty-related business in Vietnam at home? Hairstylists are making good money in this part of the world.
30. Petsitting Services
Pet sitting business is another home-based business you can start in Vietnam. If you are an animal lover, this business will be both profitable and rewarding.
Starting A Business in Vietnam – How to Register a Company for Foreigners?
Many entrepreneurs from foreign countries nowadays are much interested to set up or expand their businesses in Vietnam. Broadly, there are four types of legal entities available for outsiders. Let us look at the options below:
Limited Liability Company
This type of legal entity requires at least one founder. The positive aspect of a limited liability company in Vietnam is its simple corporate structure. Limited liability company best suits for forming a small company.
The negative side of this formation is that it can’t issue shares or list the company in the public stock exchange to raise money.
Joint Stock Company
If you are planning to start a mid-sized or large enterprise in Vietnam, forming a joint-stock company is the best choice.
You will need at least three founders to set a joint-stock company in Vietnam. It requires a management board and an inspection committee.
This formation allows promoters to issue different types of public shares to raise funds.
This option is the easiest option for foreign companies to do business in Vietnam. Foreign companies do not need to form a legal entity in this option.
However, there are many limitations toward setting a representative office. One of them is you are not allowed to carry out commercial activities or revenue in the country.
Setting a Branch Office
You will be allowed to carry out commercial activities and earn revenue if you set a branch office in Vietnam. The liability totally will have to be borne by the parent company. The activities are restricted to the activities of the parent company.
Based on the scale and scope, you need to decide on the best fit in forming a legal entity in Vietnam.
Vietnam is a growing economy. The current statistics from Forbes shows lots of possibilities and prospects in this part of the world. There are several popular business ideas in this country for you to be successful. The laws and regulations are easier, there is the availability of cheap labor as well as a ready market.
Thus, Vietnam can offer you many avenues of popular businesses. You can start with any of them and start earning profits.