A reference guide for entering Vietnam market 2017

A guide for entering Vietnam market 2017

The Vietnam Chamber of Commerce and Industry (VCCI) and PwC Vietnam issued Report on doing business in Vietnam 2017  in July 2017. According to this report, Vietnam remains proven and strong growth economy. In addition, the Vietnam’s Green eld FDI Performance Index ranks top among the emerging economies in the region, surpassing Malaysia and Thailand on attracting foreign capital. Therefore, entering Vietnam market brings many business opportunities. However, it also requires careful steps and understanding of the local market.

Why entering Vietnam market?

There has been many articles and reports about why Vietnam should be the right destination for foreign investors in South East Asia. The report has further stressed about “Why Vietnam, and why now?” issue. It has pointed out six major drivers that help enhance opportunities for foreign investors in Vietnam as follows;

  1. New free trade agreements
  2. Cost competitive production base
  3. Young and growing workforce
  4. Fast growing economy
  5. Stable government committed to growth.
  6. Fast infrastructure development

Foreign investors will find this report very helpful and informative because it has presented a very comprehensive overall of the economy and investment situation in Vietnam and how they can prepare for entering Vietnam market.

Entering Vietnam market requires careful steps and understanding of the local market
Steps for investing in Vietnam

Trade Statistics

In 2016, the key export commodities of Vietnam are (from top downward):

  • Telephone and their parts,
  • Textiles,
  • Computers, electrical products,
  • Footwear,
  • Machinery, instrument, accessories,
  • Seafood,
  • Wood and wooden products,
  • Transportation and parts,
  • Coffee.

And the key import commodities are:

  • Machinery, instrument, accessories,
  • Computers, electrical products,
  • Textiles, fabric,
  • Telephones and their parts,
  • Iron, steel,
  • Plastic material,
  • Petroleum oil, refined.

Trade statistics have shown that China was the biggest import partner of Vietnam. Meanwhile, the number from European countries was still limited. There are definitely open opportunities for European investors including Finnish companies to start entering Vietnam market.

In recent years, the government has issued various policies to encourage enterprises and attract foreign investment. This report also introduces forms of business that foreign investors can consider for entering Vietnam market, and how to set up business in Vietnam. Besides, taxation, accounting and auditing are also concerns of foreign investors when entering Vietnam market. Those issues are also dealt in this report. Other related issues including human resource and employment code, banking and capital markets are also explained clearly.

In conclusion, this is a very valuable report for foreign investors. They can use it as a reference guide for entering Vietnam market. However, it is not recommended to act upon the information in the report without obtaining professional consulting.

If you have any problem understanding the report or need any support, please contact us by sending inquiries.

Source: https://www.pwc.com/vn/en/

Hang Do

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