Vietnam is located in the center of South East Asia and is bordered by China to the north, Laos, and Cambodia to the west.
Vietnam: a growing population with growing wealth
Vietnam’s population is ranked as the 14th most populous country in the world. With a large population of 93 million, half of which are under the age of thirty, Vietnam represents a huge pool of both potential customers and employees for many investors.
Continued strong economic growth, ongoing reform, dynamic environment, reﬂected in a young population, growing wealth, changing consumer attitudes – have combined to create a dynamic and quickly evolving commercial environment in Vietnam. Vietnam has been one of the fastest growing economies in Asia the past 30 years, bringing it from poverty to a lower middle income market.
Infrastructure investments, the manufacturing industry, the export sectors and newer consumer market in Vietnam present many opportunities.
Key export commodities of Vietnam
- Telephones and their parts
- Wood and wooden products
- Agriculture products such as Coffee, Rice, Cashew nuts
- Transportation and parts
Key import commodities of Vietnam
- Machinery, instruments, accessories
- Plastic materials
- Iron, steel
- Petroleum oil, refined
- Textiles, fabrics
- Pharmaceutical products, medical devices
Vietnam’s infrastructure and manpower costs
In terms of infrastructure, the Asian Development Bank (ADB) released figures in April 2017 that mark Vietnam’s public and private infrastructure investment as the highest in Southeast Asia.
With competitive manpower cost, Vietnam also considered as a sourcing hub (OEM), a new manufacturing alternative to China, India and other Asian countries.
Vietnam as a new market to enter
Vietnam is a country full of customers, competitors, and colleagues; it is also a long-term market. Plan your establishment in phases, bring patience and develop a strategy for your entry and growth in Vietnam.
Regardless of the reasons for entry, identifying the right path into the local market can be challenging without local knowledge and experience.
Your steps to Vietnam market:
- Understand Vietnam opportunities
- See how Vietnam fits into your strategy
- Build Vietnam’s strategy execution plans
- Invest in Vietnam competencies and people
- Invest in business relationships
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.
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