No matter where in the world you live, there are opportunities for those who would like to invest. There are numerous reasons you might consider doing this, from wealth diversification to a simple desire to grow your money.
Naturally, there will always be some risk involved. There is no surefire way to increase your capital or else everyone would be doing it. Some sectors, however, offer better growth opportunities than others. Here, we take a look at three of them for those based in Vietnam and considering investing.
Why invest in Vietnam
Whether you live locally or are casting your eyes to Vietnam from overseas, there are lots of reasons to invest in the country and many ways to do it. From stocks to commodities to contracts for difference, there are several instruments to pick between. Take the latter as an example, a contract for difference – or CFD – is a way to trade on the financial markets without owning the underlying asset. More, it allows you to profit from both rising and falling values.
No wonder, then, that people are taking advantage of these instruments to trade in Vietnam, a country with stable growth, continual innovation, and constant progress. With a mission to become a developed nation within the next few years, opportunities abound – and investors are seizing the day.
With a current trading flow of $340 billion, these are three of the markets where savvy investors are putting their money.
The hotel industry
In 2020, tourism revenue in Vietnam stood at $13.8 billion – a number that’s estimated to grow again in 2021. With travel encouraged and foreign nationals made to feel welcome, many are drawn by the country’s temperate climes and incredible sights.
But it’s not only backpackers who want to visit; Vietnam is seeing an increasing desire for high-end hotels and luxury accommodation. For this reason, such projects have huge investment potential. With the greatest demand seen in big cities like Ho Chi Minh and Hanoi, joint ventures and partnerships represent ideal avenues for getting involved.
At the current time, much of Vietnam’s energy comes from non-renewable sources like coal and gas. With the move toward a greener ethos, however, there are some exciting and eco-friendly projects in the works, including solar stations and wind farms.
The government has invested heavily in these and has committed to tripling green energy output by 2030. This means these projects have a lot of growth potential, likely making them a profitable bet for investors.
Retail banking and fintech
The way we bank is changing too – there’s no doubt about it. We see this same trend the world over, but one country that has especially high growth potential is Vietnam. With a large number of its population currently unbanked, there’s a ready-made audience waiting to take advantage.
Not only this, but the country is developing at a rapid rate. With incomes increasing, people have more disposable income, and they’ll not only be looking to spend it but to save it. Fintech and retail banking will be obvious choices for this increasingly moneyed population due to high mobile penetration.
For those looking for investment opportunities, Vietnam has many. Though success is never guaranteed, all of these sectors have solid growth potential, making them worth considering for those seeking to build a strong – and hopefully profitable – portfolio.