Located in the South China Sea, in South Eastern Asia, Vietnam attracts tourists and businessmen from around the world. Known for its friendly people and natural attractions, Vietnam is now a topic of international interest.
Vietnam’s imports of goods and services are worth 104 % of its GDP. It ranks 70th internationally in the ease of doing business rankings among international business transacting countries. Imports into Vietnam have been consistently growing over the years.
Vietnam is still a developing country. With best intentions of the government and industry, enforcing contract integrity and dispute resolution could be a slow process if proper precautions are not taken in advance. Local knowledge is vital in ensuring good business relations with reliable business partners.
Economic Parameters of Vietnam (World bank, as of 2019)
|GDP (billion USD)||329.54|
|GDP per capita (USD)||2,715.28|
|GDP per capita PPP (USD)||8,397|
|Purchasing power per dollar, compared to the USA||274%|
|Surface area (sq km)||331,212|
|% of population living in urban areas||36.63%|
|% of GDP added by agriculture – industry – services||14.85% – 39% – 43%|
|Ease of doing business index (1 = best, 180 = lowest)||78|
Where the action really is – international business and Vietnam
The government of the Socialistic Republic of Vietnam circulates updated information about business opportunities, changes in regulations, and laws pertaining to international trade. Trade fairs are regularly organized to facilitate business partnerships and new business opportunities.
Vietnam is considered generally safe and friendly for foreign business. It is easy to set up a 100% Foreign owned Limited Liability Company (LLC) in Vietnam with just 1 shareholder, who can have any nationality and need not be residing in Vietnam.
With its growing economy, it continues to offer opportunities for international business. A Vietnam investment is considered wise and safe from a foreign business’ point of view. However, the point to be noted is that, Vietnam still has many state-owned enterprises which may influence competition in certain sectors.
Since Vietnam is a developing country, business dispute management mechanisms may not be as efficient as the corresponding mechanisms in the west. Business deals and contracts have to be entered into with the involvement of local expertise. Finding the right business partner can make a big difference between success and failure.
What are Vietnam’s important events?
Football is the major sport in Vietnam followed by a popular interest in volleyball. For a tourist or a business traveller, Vietnam is a tropical paradise full of friendly people to make visitors feel at home. Dotted with landmarks from its Buddhist traditions, with its Bays, waterways, and other natural enticements, Vietnam enchants all who visit this divine country.
The Vietnamese have simple pastimes, mostly hanging out with friends, watching televisions in groups, or listening to loud music played at public locations.
Doing international business in Vietnam can be so tempting as the country’s economy is growing. A complete market research will help you understand the country and formulate your international expansion strategy.