Post on 25-Dec-2015
Vietnam: market potential & opportunities
Vietnam. At a glance.
Source : Asia Council Insights
Growing middle class
Modernization
Regional Differences
EU-Vietnam FTA
Alternative to China
Trade EU and Vietnam 2013
- EU has become the major exporting
market for Vietnam (21.3 billion EUR)
- Exports from the EU to Vietnam only
amounted to 5.8 billion EUR in 2013
Business Climate Index EuroCham 2014
Largest FDI Investors 2013
Vietnam. And Europe.
Source : http://www.eurochamvn.org/node/13685General Statistics Office of Vietnam
Vietnam Facts 2014
- GDP growth: 6 %
- Total GDP: 171 bn. USD
- Inflation: 4.1 %
Doing Business in Vietnam. Opportunities.
Growing Middle Class
Regional Differences
Young workforce (low wage level)
Modernization
Upcoming Missions
Doing Business in Vietnam. One country, different markets.
Hanoi
Ho Chi Minh
Da Nang
• The South fosters commerce, exports, telecom, finance, services, technology. As a major contributor of national GDP, the South is the leader in the industrialization and modernization of VN.
• Key industries: oil & gas, electronics, textile & garment, footwear, power generation, chemicals, fertilizer, steel, mechanical engineering, rice, F&B, food processing, rubber.
• Economic hubs: Ho Chi Minh city, Binh Duong, Dong Nai, Vung Tau.
South Vietnam
• Key industries: Mining-metallurgy (coal), power production, mechanical engineering, electronics, aqua-agriculture, forestry, textile and garment, cement, chemicals, shipbuilding, automotive, steel.
• Economic hubs: Hanoi, Hai Phong, Quang Ninh, Bac Ninh.
North Vietnam
• Key industries: oil refinery, shipbuilding, costal tourism, electronics, mining (coal, gold), seafood processing, coffee plantation.
• Economic hubs: Da Nang, Quang Ngai, Hue
Central Vietnam
Vietnamese populations:•69 % rural •31 % urban
•LifeStyle products•Consumption habits change: Western brands in demand.•Growing middle class up to 25 mio. people in 2020
Doing Business in Vietnam. Growing Middle Class.
Source: Vietnam’s internet association (VIA)
Market studies available!
Market Studies available!
Doing Business in Vietnam.Green Technologies.
Renewable Energies
Water Management
Waste Management
Energy demand expected to grow by 11 % p.a. (2016-2020)
Government initiatives to increase the share of renewable energies to 6 % by 2030.
Doing Business in Vietnam.Upcoming Missions.
Doing Business in Vietnam. Challenges.
Find the right people with the necessary skills.
Build procedures and strict company policies to guide the local staff.
Make sure to identify the most important positions in the company and to hire the best people for these strategic positions, and secure them with competitive salaries.
Paper work and documentation are particularly important in Vietnam, so make sure to anticipate long in advance, to avoid any delay or issue.
Find a good local partner, there is no way you can do it alone.
Follow the rules.
Adapt management methods in accordance with local customs and culture.
Form of investment & partnership (foreign-owned, joint venture)
Administrative Procedures / Licensing
Labour law / Hiring Process & Key people
Location (city, industrial park, office)
Doing Business in Vietnam. Challenges.
Doing Business in Vietnam. Challenges.
Find the right partner!
Be on the ground.
Relationships are important.
Take your time.
Talk to local experts and seek professional support.
Cultural differences.
Vietnam. Full of opportunities.
Thank you very much……and see you in Vietnam!
Visit us on:http://evbn.org/
Back-up
EVBN: Who we are. The team.
Pierre-Jean Malgouyres, Chairman
Delphine Rousselet, Project Director
Jana Ackermann, Deputy Director
Thanh Cao Nguyen, Events & Communications Manager
To Anh Su, Project Accountant
Trang Le,Receptionist
Huong Luu, Business Center Officer
Ny Ly, Administrative & Business Support Officer
Phuong Thao Nguyen Legal Consultant
EVBN: What we do.
Vietnam. Globalization of Exports.
Clients
19 % (24.4 bn. USD)
18 %
15 %
10 %
19 %
9 %
8 % (9.5 bn. USD)
28 %
Suppliers Vietnam
Source: Vietnam Customs, Figures from 2013