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