Top 10 Reasons To Invest In Vietnam And Build A Real Base With The Sentry

Vietnam keeps showing up on serious investor radars for one simple reason. The numbers keep moving in the right direction, then the on-the-ground reality backs it up. You can land, hire, meet partners, ship products, and scale operations without needing a year of “getting settled” time.

In 2024, Vietnam’s economy grew 7.09% and total GDP reached about $476.3 billion. Exports climbed 14.3% to $405.53 billion, ending the year with a trade surplus of $24.77 billion. That kind of momentum is why so many teams are looking at Vietnam as a place to invest, not just a place to outsource.

Below are 10 reasons investors keep betting on Vietnam, plus a practical way to set up a working base in Ho Chi Minh City with The Sentry.

1. The Economy Is Strong And Stable

Vietnam has built a reputation as a resilient economic powerhouse in Asia. The country has maintained high growth rates for decades. It often outperforms its neighbors even during global downturns.

You can see this resilience in how quickly the economy rebounded after recent global challenges. The government has set a clear vision to become a high-income nation by 2045. This long-term goal drives policy decisions that prioritize sustainable development.

The stability of the macroeconomy is a major draw for foreign investors. The State Bank of Vietnam has managed inflation effectively. They have kept the currency relatively stable against the US Dollar compared to other regional currencies.

This predictability allows you to forecast your returns. You can manage risks without fear of sudden currency shocks. The banking sector has also strengthened significantly with improved credit ratings from agencies like S&P Global.

This growth is not limited to just one sector. While manufacturing remains a powerhouse there is rapid expansion in other areas. We are seeing a boom in services and tourism and technology.

International forecasts project Vietnam’s economy to grow by approximately 6% to 7% in 2025.

This broad-based growth creates opportunities across many different industries. Whether you are in retail or construction or software development you will find a growing market. The consistent performance reduces the perceived risk for international capital.

2. The Location Is Strategic For Trade

The geographical position of Vietnam is arguably its greatest natural advantage. The country is located in the center of East Asia. It acts as a bridge between the Indian and Pacific Oceans.

This location puts you within a four-hour flight radius of more than half the world’s population. You can easily travel to major business hubs like Singapore and Hong Kong and Tokyo. This connectivity is vital for regional headquarters that need to manage operations across Asia.

Vietnam possesses a long coastline that stretches over 3,000 kilometers along the East Sea. This provides direct access to one of the busiest maritime trade routes on the planet.

Deep-water ports like Cai Mep-Thi Vai in the south can handle the largest container ships in the world. This port is ranked among the top performing container ports globally. This means your goods can be shipped directly to North America and Europe.

You do not need to transship through other hubs. This direct access saves you significant time and reduces your logistics costs. The proximity to China is another strategic benefit.

It supports the popular “China Plus One” strategy. Many companies are diversifying their supply chains to reduce risk. Vietnam shares a land border with China.

This allows for the easy transport of raw materials and components by road and rail. You can maintain your existing supply networks while moving your assembly to a lower-cost location.

3. The Workforce Is Young And Talented

Vietnam is currently enjoying a “demographic dividend” that powers its economic engine. The population has surpassed 100 million people. This provides a massive labor pool for businesses of all sizes.

The median age is approximately 32 years old. This means the workforce is young and energetic. This stands in stark contrast to many developed nations that are facing aging populations. You will find a steady supply of workers who are in their prime productive years.

The quality of this workforce is improving rapidly. The government invests heavily in education and training. The literacy rate is over 97% which is among the highest in the region according to World Bank data.

Vietnamese students consistently perform well in international assessments. They often rank high in PISA scores for math and science. The government has prioritized STEM education to prepare the country for the digital age.

You can find highly skilled engineers and developers and data scientists here. Cultural factors also play a role in productivity. Vietnamese people are known for their hard work and determination.

There is a strong entrepreneurial spirit and a drive to improve one’s standard of living. Employees are often willing to go the extra mile to ensure the success of the company. This dedication translates into higher efficiency for your business.

English proficiency has improved dramatically in recent years. This is especially true in major cities. The younger generation consumes global media and understands the importance of English.

4. Labor Costs Are Highly Competitive

Cost efficiency is often the deciding factor for investors. Vietnam wins in this category against many regional competitors. The cost of labor here remains significantly lower than in China and Thailand.Reports indicate manufacturing labor costs can be 50% lower than in China. This wage differential is massive for large operations.

It allows manufacturers to maintain healthy profit margins. You can keep your product prices competitive globally. It is particularly attractive for labor-intensive industries like textiles and footwear.

The government has established a minimum wage system that varies by region. This allows you to optimize your costs based on your specific needs. You can choose a location that fits your budget perfectly.

Zone 1 covers major urban centers like Ho Chi Minh City where talent is abundant. Zones 2 through 4 cover rural areas where wages are lower. You can locate your factory in a lower-cost zone to maximize savings.

However low cost does not mean low quality. The productivity of Vietnamese workers is rising faster than their wages. You get a high return on investment for every dollar spent on payroll.

For service and tech companies the savings are equally impressive. Hiring a team of software developers in Vietnam costs a fraction of the price in Singapore or the US. You can build a larger team and iterate on your product faster.

5. Policies Favor Foreign Investors

The government views foreign investment as a critical pillar of national development. They have created a legal framework that is open to international business.

The Law on Investment protects the rights of foreign investors. It ensures fair treatment for everyone. You can own 100% of your company in most sectors without needing a local partner. This full ownership gives you complete control over your operations.

You can benefit from a wide range of tax incentives. Investments in high-tech industries often qualify for Corporate Income Tax (CIT) incentives. This can mean paying zero corporate income tax for four years.

These incentives can significantly boost your return on investment in the early stages. The administrative procedures for setting up a business have been simplified. The government is implementing “one-stop-shop” mechanisms to reduce bureaucracy.

Many provinces compete with each other to attract FDI. They offer streamlined processes and local support. Industrial parks often have dedicated management boards to assist you.

FDI disbursement reached record highs of over $23 billion recently. This number proves that global companies trust this legal environment.

6. Trade Agreements Connect You To The World

Vietnam has integrated itself deeply into the global economy. The country has signed over 15 active trade deals. This network covers dozens of countries and billions of consumers.

This network gives you preferential access to major markets. You can trade easily with the European Union and Japan and South Korea. It effectively expands the domestic market of Vietnam to the world.

The EU-Vietnam Free Trade Agreement is one of the most comprehensive deals ever signed. It eliminates almost 99% of customs duties on goods traded with Europe. This gives Vietnamese exports a huge price advantage.

Sectors like textiles and footwear and seafood benefit immensely. You also gain access to the CPTPP which connects Vietnam with the Americas. It opens up new markets that were previously difficult to reach.

These trade deals do more than just lower taxes. They also drive domestic reforms. Vietnam must adhere to international commitments regarding transparency. This alignment with global standards creates a predictable business environment for you.

7. Infrastructure Is Developing Rapidly

Vietnam is transforming its physical landscape. The government allocates a large portion of its GDP to infrastructure development. You will see new expressways and bridges being built across the country.

The North-South Expressway is a strategic artery. It connects the entire nation and drastically reduces logistics times. Goods can move from factories to ports much faster than before.

The aviation sector is seeing a major upgrade. The construction of Long Thanh International Airport is a massive project.

This airport near Ho Chi Minh City will serve up to 100 million passengers per year. It will become a regional transit hub. This improved air connectivity makes it easier for you to ship air freight.

Urban infrastructure in major cities is also being modernized. Ho Chi Minh City is building metro systems to reduce traffic congestion. New industrial parks are being developed with modern utilities.

Energy security is another focus area. Vietnam is investing heavily in renewable energy sources. The Power Development Plan VIII outlines a clear path toward green energy. This is important for manufacturers who have strict sustainability targets.

8. The Consumer Market Is Booming

Vietnam is undergoing a profound social transformation. The middle class is the fastest-growing segment of the population.

Some reports suggest the middle class could double by 2030.

These consumers are educated and optimistic. They are eager to improve their quality of life. This demographic shift is creating a booming market for domestic consumption.

There is a strong demand for high-quality goods. Fashion and electronics and home appliances are flying off the shelves. People are also spending more on services like healthcare and education.

You will see international brands opening stores in every major mall. Urbanization is fueling this consumption trend. More people are moving to cities for better jobs.

The urban lifestyle drives demand for convenience. Modern supermarkets and food delivery apps are growing fast. The financial services sector is also seeing rapid adoption.

Digital banking and e-wallets are becoming the norm. The population is moving away from cash. This digital shift opens up opportunities for fintech startups.

9. The Digital Economy Is Dynamic

Vietnam has emerged as a hotbed for innovation. The digital economy is growing at a breakneck pace. It is projected to reach USD 39 billion by 2025.

The government strongly supports this sector. They want to turn Vietnam into a digital nation. You will find a vibrant community of startups solving real problems.

Vietnamese founders are technically strong. They are increasingly business-savvy. The country has already produced several “unicorns” valued at over a billion dollars.

Venture capital funds from around the world are watching closely. They see the potential for high returns. The availability of funding has improved significantly for early-stage companies.

There are many incubators and accelerators that provide mentorship. The government has issued decrees to create a legal sandbox for new technologies. This allows startups to experiment with innovative ideas.

The spirit of innovation is palpable. Tech teams and founders collaborate daily in shared workspaces across the cities. You can easily find partners or investment opportunities within this community.

10. Expats Enjoy A High Quality Of Life

Moving to Vietnam offers an exceptional lifestyle. You can balance professional opportunity with personal enjoyment. The cost of living is very affordable.

You can rent a modern luxury apartment in a central district for a reasonable price. Domestic help and services are also affordable. This makes daily life very convenient and stress-free.

The food scene in Vietnam is world-renowned. You can enjoy incredible street food like Pho on every corner. The cities also boast a growing number of fine dining establishments.

The cafe culture provides countless spots to work or socialize. You will never run out of new places to explore. Vietnam is also an incredibly safe country for foreigners.

Violent crime is rare and the environment is stable. Vietnam consistently ranks high in safety indices for Southeast Asia. The local people are famous for their hospitality.

You will find it easy to make friends and build a social circle. The country is naturally beautiful. You can visit stunning beaches or explore the mountains on your weekends. This ability to escape to nature helps you maintain a healthy work-life balance.

Where To Land In Vietnam

You have seen the data and the potential is undeniable. But knowing why to invest is only half the battle. You also need to know where to start. Navigating a new market can be difficult without the right support network and physical environment.

This is where The Sentry comes in.

The Sentry is the leading flexible workspace provider in Vietnam designed specifically for innovators and modern businesses. We do more than just provide a desk. We offer a complete ecosystem that helps you land and expand in this dynamic market.

If you want to turn “Vietnam looks interesting” into actual momentum, start by picking a base you can operate from next week, not next quarter.

• Phone +84 28 3636 0211 
• Email frontdesk@thesentry.com.vn 

Choose the location that matches your plan

• The Sentry C at 15 Le Thanh Ton, Sai Gon ward
• The Sentry Z at 25A/1 Nguyen Binh Khiem, Sai Gon ward 
• The Sentry P at 16 Nguyen Dang Giai, An Khanh ward  
• The Sentry Q at Orbital 2.0, QTSC, Trung My Tay ward

We are ready to welcome you to Vietnam and help you succeed.