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Investment

DEFINITION

Investment is defined as activities that use current resources to bring to the economy and society greater results in the future.

In a broader sense, investment can also be understood as the sacrifice of current resources to carry out certain activities in order to receive greater results in the future.

Simply, investment is the use of financial, material, labor, intellectual and time resources to achieve profits and socio-economic benefits.

What investment needs and its meaning?

Capital

Investment capital is money accumulated by society, business units or individuals mobilized from many sources.

Capital is not only money but can also be other types of assets such as equipment, workshop, ownership, technological processes, etc. Capital also has many types such as State capital, private capital, equity capital, loan capital.

Time

To be considered an investment, activities need to be for a minimum of 2 years or more and even up to 50 years. If it is less than 1 year, it cannot be considered an investment. The investment term is specified in the investment decision or investment license and is considered the life of the project.

Meaning

Not only is it a personal benefit (profit) but investment also brings benefits to society (economic benefit) through the direct influence that the investment brings.

Popular forms of investment in Vietnam

Saving

This is probably the investment channel with the lowest risk but in return the level of return is similar. But it is undeniable that this is a traditional channel that is trusted by many people..

Gold and foreign currency

This is one of the oldest and reliable investment channels. Low risk means not too big profit. Compared with savings, this option still gives a higher return. In return, investors need to pay attention to storage and preservation.

Real estate

Real estate investment has never lost its charm. The biggest disadvantage is the large initial investment capital and long investment period. In addition, the influence of fake information and virtual projects is also a factor to consider.

Stock

No need for a large initial capital, no storage, much higher profitability than savings. This can be considered as the fastest growing investment channel today. However, you need specialized knowledge and the level of risk is also higher than other forms.