Which Sectors Attracting Investment in First Half of 2015?

The trend of foreign direct investment (FDI) in Vietnam continues to tremendously increase into key sectors such as industrial processing and manufacturing, business and real estate, wholesale and retail, through setting up business in Vietnam.

Accordingly, the disbursed FDI inflows in June positively increased and exceeded the growth rate of last year. In June 2015, registered and new FDI is 1.19 billion dollars, bringing the total registered and new value to 5.49 billion dollars since the beginning of this year, equivalent to 80.2 % value of the same period in last year 2014.

In particular, FDI registered capital of 3.83 billion USD since the beginning of 2015 is equivalent to 79% FDI capital of the same period in 2014. Additional FDI capital was 1.65 billion in the first 6 months of 2015, equivalent to 83% FDI capital of the same period of 2014. The FDI project has disbursed a total of 6.3 billion, increase 9,6% value in the same period in 2014.

FDI in small-scale projects has a tendency to continue to play a leading role as the previous month. In June 2015, Vietnam has not had any large-scale projects yet. Meanwhile, small-scale projects including new and additional capital have increased. The number of new projects increased by 15% and the number of additional capital projects increased more than 28%.
Foreign investment in Vietnam in the past 6 months continuously focuses on key industries like processing industries, manufacturing, business and real estate, wholesale and retail.

Previous figures of Foreign Investment Agency (Ministry of Planning and Investment) stated that processing industries, manufacturing continues are the sector attracting the interest of foreign investors with 338 registered investment projects and 190 new projects increased capital, with total new and additional capital is 4.18 billion, which accounts for 76.2% of total registered capital. Real estate is second with 11 projects registered and 7 projects increased capital. The total investment of newly registered and additional capital is 465.5 million USD, accounting for 8.5% value of total capital investment. At third, the wholesale and retail sector with 119 new projects and 26 projects increased capital. The total investment of newly registered and additional capital is 276.5 million USD, accounting for 5% value of the total investment.

Compared with the same period of 2014 figures, it’s clearly that foreign capital invested in the retail sector is growing. In the first 6 months of 2014, FDI in retail sector figures stop at about 1.4% of total registered FDI capital in Vietnam. In the first 6 months of 2015, this figure has increased by 5%.

In conclusion, thanks to the considerably development in recent years, the retail industry has risen and competed against the construction industry, becoming one of three areas which attracts foreign capital the first six months of the year 2015.

ANT Consulting is here to assist you from the outset; providing intelligence, information, management or support and administrative services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Market Entry
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We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Vietnam Market Research

MARKET RESEARCH IS AN IMPORTANT OPERATION. IF THE MARKET RESEARCH IS WELL DONE, IT PROVIDES ACCURATE INFORMATION TO HELP MARKETERS MAKE AN APPROPRIATE STRATEGY AND THEN, BRING HIGH EFFICIENCY IN BUSINESS. IN OTHER WORDS, IF THE RESULT OF MARKET RESEARCH IS INACCURATE INFORMATION AND DOES NOT CORRECTLY REFLECT THE ACTUAL MARKET SITUATION, MARKETING ACTIVITIES WILL BE INEFFICIENT.

Companies would fail if underestimating the importance of market research before entering a new market.

Therefore, market research activity is so important for whomever needing success. Namely, the market research is considered an active approach to enter into the market. The market research also helps you understand the latest development in the target market, thereby making marketing decisions quickly. The international business environment is quite volatile, that‘s why you need a proactive approach like that and it is really your competitive advantage.

Through the market research, you can form the idea of developing a new product and choose the correct strategy for that product in each specific market. Through research, you also do not have to waste money and effort for the false hope, especially when you export the products to oversea for the first time. On the other hand, it should be noted that although the market research does not make sure success in business, it will help you avoid many wrong decisions.

Market research service can:

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• Help understand the competitors, including strengths and weaknesses, mistakes and their causes of success.
• Help find ideas to develop new products.
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If you wish to explore investment opportunities, before setting-up company, or learn benefits of doing business in Ho Chi Minh City, or doing business in Hanoi, let us help with market research.  Please contact us via email ant@antconsult.vn or call our office number: +848 35202779 (HCMC) or +844 39388751 (Hanoi).

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