Top Business Opportunities In Vietnam For 2024 - JDI Group (2024)

The flourishing business opportunities in Vietnam have captured the attention of not only industry leaders and investors but also startups looking for great growth prospects.

Driven by supportive government initiatives and policies aimed at fostering sustainable economic growth and attracting greater FDI, the country has witnessed a remarkable surge in GDP growth rate, reaching 5.66% in the first quarter of 2024 compared to the same period last year.

As Vietnam solidifies its position as one of the fastest-growing economies globally, we anticipate a burgeoning array of market opportunities emerging across various sectors. From retail and manufacturing to financial services and healthcare, the landscape is ripe for exploration, offering promising avenues for growth and success.

Overview of Vietnam’s Market Landscape

Vietnam has undergone rapid economic expansion, demonstrating an impressive average annual GDP growth rate of around 5.7% over the past seven years (2017-2023).

Source: GDP Growth Rate of Vietnam 2017-2024 | International Monetary Fund

The rise of Vietnam as an economic powerhouse is fueled by several factors, including a stable political system with a relatively open FDI environment. The country also benefits from its abundant workforce of skilled laborers and a large population of young consumers. Moreover, Vietnam’s great effort in embracing digitalization over the past several years also contributes to its explosive economic growth.

Ranked as the fastest-growing digital economy in Southeast Asia since 2022, the country is expected to maintain this position until at least 2025. This remarkable growth is steered by the Vietnamese government’s commitment to sustainable smart city development initiatives.

Their strategic goal is to accelerate digital transformation in urban governance, significantly boost the country’s economic development, and meet the ever-increasing demand of its population for innovative solutions that improve their daily lives.

As a result, business opportunities in Vietnam have been flourishing not only in terms of quantity but also in the great potential growth prospects they offer to global firms, investors, and startups.

Business Opportunities in Vietnam For the Financial Services Sector | FinTech

Vietnam’s FinTech sector is forecasted to reach an astounding 18 billion USD in market value by 2024, boasting the second-highest growth rate in ASEAN after Singapore. In just four years (2018-2022), the number of active users of e-wallets in Vietnam has more than tripled, surging from 12.3 million to 41.3 million, and is expected to surpass 50 million by 2024.

The remarkable growth of Vietnam’s FinTech sector is propelled by three key factors: extensive mobile connectivity, high internet penetration, and the surge in e-commerce amidst the pandemic. Together, these elements create a vibrant FinTech landscape for Vietnam’s youthful and tech-savvy consumer base.

It’s intriguing to note that a considerable portion of transactions in Vietnam continue to rely on cash, with nearly 80% of the population being unbanked or underbanked. In other words, there is still vast untapped potential within the FinTech sector, signaling significant opportunities for growth.

Notable FinTech Sub-sectors In Vietnam

• Digital Payment
• Financial Lending
• Crowdfunding
• Wealth Management
• Insurtech
• Data Management & Credit Scoring
• Blockchain/Crypto

Read on: FinTech ecosystem and its major players in Vietnam

Business Opportunities in Vietnam For Healthcare Sector | HealthTech

Vietnam’s healthcare spending is expected to reach 23.3 billion USD by 2025. The country is also leading Southeast Asia in healthcare expenditure to GDP ratio, standing at 6%, outshining neighboring countries such as India, Thailand, and even Singapore.

Additionally, the nation’s HealthTech revenue is forecasted to exceed 900 million USD by 2024, with the market forecasted to reach 1.5 times that amount by 2027. The remarkable growth is fueled by a combination of various factors, including the escalating demand for healthcare services, widespread internet and mobile penetration, and substantial government investments in healthcare digital transformation.

It’s worth noting that Vietnam is going through a demographic transition, marked by a rapidly aging population and declining birth rates. As a result, the country’s authorities are doubling their efforts in improving both the nation’s healthcare quality and infrastructure.

Additionally, with the Vietnamese becoming more health-conscious, the demand for better healthcare services will skyrocket. This opens up even more lucrative business opportunities in Vietnam for healthcare service providers, both in the public and private sectors.

Notable HealthTech Sub-sectors In Vietnam

• Telemedicine Platforms
• Health Information Systems
• Mobile Health (mHealth) Apps
• Remote Patient Monitoring
• E-pharmacy Platforms

Read on: HealthTech ecosystem and its major players in Vietnam

Business Opportunities in Vietnam For Retail Sector | E-commerce

Vietnam’s flourishing E-commerce landscape is driven by a dynamic, tech-savvy consumer demographic and a high internet penetration rate. In just 5 years, the nation’s E-commerce sector has experienced explosive transformation, witnessing online channels outpacing traditional retail avenues in the Fast-Moving Consumer Goods (FMCG) market.

The Vietnamese Ministry of Industry and Trade also highlighted that E-commerce continues to be one of the bright areas in the nation’s digital economic development roadmap, with an average growth rate of over 20% annually. By 2026, Vietnam is projected to become the fastest-growing e-commerce economy in Southeast Asia, with e-commerce Gross Merchandise Value (GMV) reaching $56 billion.

Yet, Vietnam’s E-commerce market is still in its infancy, accounting for only 8.5% of the total retail sales of consumer goods and services. Coupled with strong consumer demand for online shopping and supportive policies from the government, the potential for E-commerce growth in Vietnam is substantial, with ample opportunities for international firms and investors to capture.

Notable E-commerce Sub-sectors In Vietnam

• Fashion
• Electronics & Media
• Toys, Hobby & DIY
• Furniture & Appliances
• Food & Personal Care

Read on: E-commerce ecosystem and its major players in Vietnam

Business Opportunities in Vietnam For Education and Training Sector| EdTech

Vietnam’s online education revenue is projected to exceed 360 million USD in 2024, with an annual growth rate of over 10%. Additionally, the user penetration rate is estimated to be 8.5%, equivalent to over 2 million users.

The EdTech market in Vietnam has experienced explosive growth in recent years as parents and students demand better learning experiences, especially for foreign language learning services. The country is ranked among the top 10 fastest-growing EdTech markets globally, with an impressive average annual growth rate of 20.2%.

Another factor contributing to its growth is the COVID-19 pandemic, which has broken down barriers to online learning for students while also changing parents’ perspectives regarding their kids’ usage of computers and smartphones for online classes.

On the other hand, Vietnam has also observed an increased demand from enterprises and innovative businesses to train their employees more effectively and conveniently through digital platforms and EdTech solutions.

As the EdTech sector continues to flourish, it presents promising business opportunities in Vietnam for both local and international organizations to shape the country’s education future.

Notable EdTech Sub-sectors In Vietnam

• K-12 Education
• Early Childhood Education
• Corporate Training
• English Learning
• Offline-online
• Tools

Read on: EdTech ecosystem and its major players in Vietnam

Business Opportunities in Vietnam For the Manufacturing Sector

Vietnam’s value added in the manufacturing market is forecasted to reach 109.90 billion USD in 2024, with a growth rate of 8.78%. The sector has attracted around 261.4 billion USD in FDI and is expected to increase further in 2024 and beyond.

The country is also the manufacturing hub for many tech giants, including Samsung, Microsoft, Intel, and LG. On the other hand, leading enterprises such as Foxconn, Luxshare, and Pegatron are also expanding their production facilities, while Apple and Nvidia have announced their commitment to invest in Vietnam.

Thanks to its strategic location and competitive labor costs, which are 50% cheaper than China on average, Vietnam is quickly emerging as one of the most effective relocation destinations for many international players.

Coupled with the government’s robust tax incentives and multilateral free trade agreements such as CPTPP and EVFT, Vietnam has become a great manufacturing destination for international enterprises.

Notable Manufacturing Sub-sectors In Vietnam

• Electronics/ Computers
• Machinery Tools & Spare Parts
• Textile and Clothing
• Food & Beverage Production
• Leather & Footwear

Capitalize On Vietnam’s Emerging Markets

Business opportunities in Vietnam are tremendous; however, expanding your business into the country is not a simple matter. It requires a comprehensive understanding of the challenges, barriers, and advantages of venturing into Vietnam, and how businesses can navigate them effectively.

One of our clients, Datality Lab has successfully accelerated business market entry and established a strong foundation for future growth within the country by relying on Launch JDI’s extensive partner and client network in Vietnam. Learn about their success story here.

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