Vietnam continues to grow, expanding incentives to attract foreign investment

Vietnam is attracting attention as a new investment destination in Southeast Asia. After recovering from the COVID-19 pandemic, the country’s economy is once again returning to a high growth trajectory. Real GDP growth rate in 2022 is expected to be approximately 8.0%, the highest level since 2011. Growth is expected to be 5.5% in 2023 and 7.1% in 2024, with GDP expected to reach USD 476 billion in 2025. This is a growth pace that stands out even among ASEAN countries.

The government is rushing to improve systems to attract foreign capital. In particular, it has introduced preferential measures to limit corporate tax to 5% for up to 37 years, targeting high-tech sectors and research and development. Based on Decision 29/2021/ QD-TTg, which came into effect in 2021, the aim is to enhance the international competitiveness of the investment environment.

FDI growth remains strong, led by manufacturing, increasing by 9% on an executed basis

Registered FDI in 2024 was approximately USD 38.2 billion, slightly lower than the previous year. Processing and manufacturing continue to be the mainstay, indicating strong interest from overseas companies.

It is noteworthy that while the registered amount decreased slightly, actual investment expenditure increased. This indicates that confidence in the Vietnamese market is gaining ground, and the government’s preferential policies and stable economic management continue to attract foreign investment.

Foreign Direct Investment (FDI) Registration Amount (%)

B&Company compilation

Collaboration with local companies is key, and matching support is in the spotlight

The key to market entry is finding a reliable local partner, and interest is growing in business-matching services that connect foreign companies with Vietnamese companies.

These support services provide comprehensive support, from selecting and evaluating partner candidates that meet a company’s requirements to setting up business meetings and coordinating on-site visits. Furthermore, they help build long-term relationships by providing communication support that considers cultural and language differences. As global expansion accelerates, matching support is becoming increasingly important as a bridge to encourage foreign companies to enter the market.

Lack of data and language barriers: remaining challenges in local collaboration

However, there are still many challenges to local collaboration. First, there is a lack of industry-specific corporate databases, making it difficult to quickly identify trustworthy partners. Information disclosure is limited, and there are many cases where it is difficult to understand financial details and performance. Furthermore, access to management is difficult, and in many cases, responses are limited to the sales department level. Decisions tend to take a long time to be made. Furthermore, the use of foreign languages such as English is limited, and differences in negotiation styles and business practices can sometimes cause friction.

These structural factors may combine with delayed negotiations and stall projects. Success or failure will depend on whether you can utilize the support of an intermediary agency that is familiar with local conditions.

Matching process and main challenges faced by foreign investors

B&Company’s compilation

Professional services drive market entry, demand on the rise

The role of specialized businesses that provide business matching support is increasing year by year.

For example, B&Company’s services are distinguished by industry-specific partner matching and fully customized support, rather than relying on general business directories. We shorten the time needed for company research and candidate screening, enabling more efficient selection. In addition, we conduct market research and due diligence, and plan and manage business meetings and networking events. With translation, interpretation, and negotiation support, we provide comprehensive, locally grounded support that fully accounts for language and cultural differences.

With this consistent support, companies expanding overseas can smoothly proceed from partner selection to business establishment.

B&Company’s business matching service

B&Company’s compilation

The key points in selecting a service are expertise and track record

The key to success is choosing a reliable matching service. The first criterion is whether the service has industry knowledge and a track record that is tailored to your company’s industry. Another important indicator is whether or not the service has a network with local companies, industry associations, and government agencies. It is also important to consider the service’s practical capabilities, such as legal and contract support, and the state of follow-up systems after the business launch. Furthermore, the success or failure of a local business depends on whether the service can respond flexibly to the client company’s objectives.

The first step to success is to carefully select from a wide range of options based on the criteria of “expertise x track record x network.

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