Vietnam’s Overseas Investment Activities: Current State and Recommendations

The overseas investment activities of Vietnamese enterprises are becoming increasingly dynamic, contributing to enhancing Vietnam’s position on the international stage. However, alongside opportunities, Vietnamese businesses face numerous challenges that must be addressed to ensure investment efficiency.

Current State of Vietnam’s Overseas Investment

1. Growing Investment Scale

After over 30 years of integration, Vietnam has become one of the leading investors in Laos, Cambodia, and Myanmar. In the first six months of 2020, total newly registered and adjusted investment capital increased significantly compared to the same period in 2019.

2. Diverse Markets and Sectors

Major enterprises such as PetroVietnam, Viettel, and Hoàng Anh Gia Lai have surpassed USD 1 billion in registered overseas investment capital. Key investment markets include neighboring countries like Laos and Myanmar, as well as Germany, with a notable project by Masan Tungsten Co., Ltd. in Germany valued at USD 91.5 million in 2020.

3. Supportive Government Policies

The Vietnamese government has introduced several supportive policies, such as Decree 83/2015/ND-CP and Circular 03/2018/TT-BKHDT, which standardize legal procedures and create a favorable environment for businesses investing abroad.

Challenges in Overseas Investment

1. Legal and Cultural Risks

Differences in culture, legal frameworks, and business environments between Vietnam and host countries can lead to disputes, impacting local communities’ rights and the reputation of Vietnamese enterprises.

2. Limited Capabilities

Vietnamese businesses often approach overseas investment with a domestic mindset, lacking international management experience and sufficient financial resources, particularly in capital-intensive sectors like agriculture.

Recommendations to Enhance Investment Efficiency

1. Improving Supportive Policies

The government should introduce more flexible mechanisms aligned with international standards and develop tools to guide businesses in mitigating risks during the investment process.

2. Enhancing Business Capabilities

Enterprises need to equip themselves with knowledge and skills in international management, particularly in areas such as trade promotion and business operations, to minimize risks and enhance competitiveness.

3. Strengthening International Cooperation

Increase collaboration with host countries to reduce legal disputes and learn from the experiences of nations with successful overseas investment practices.

Seizing Opportunities for Sustainable Global Growth

Vietnam’s overseas investment activities open up numerous opportunities but also present significant challenges. Refining policies and enhancing enterprise capabilities will be key to ensuring sustainable development for Vietnamese businesses in the international market. Let W&A partner with your business to seize opportunities and elevate your global presence!

👉 Learn more about our services here.

Contact Us for Detailed Consulting

☎️ +84 93 594 8688

📧 Email: nam.phan@waco.com.vn

🌐 Website: https://www.waconsulting.vn/

📌 18th Floor, Vincom Center Đồng Khởi, District 1, Ho Chi Minh City

🏢 2nd Floor, Saigon Paragon Building, Tân Phú Ward, District 7, Ho Chi Minh City