Vietnam: market potential
& opportunities
Vietnam. At a glance.
Modernization
Regional Differences
Growing middle class
EU-Vietnam FTA
Alternative to China
Source : Asia Council Insights
Vietnam. And Europe.
Trade EU and Vietnam 2013
-
Business Climate Index EuroCham 2014
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
Largest FDI Investors 2013
Vietnam Facts 2014
Source : />General Statistics Office of Vietnam
-
GDP growth: 6 %
-
Total GDP: 171 bn. USD
-
Inflation: 4.1 %
Doing Business in Vietnam.
Opportunities.
Growing Middle Class
Modernization
Regional Differences
Young workforce (low wage level)
Upcoming Missions
Doing Business in Vietnam.
One country, different markets.
North 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.
Hanoi
Central Vietnam
Vietnamese
populations:
•69 % rural
•31 % urban
Da Nang
• Key industries: oil refinery, shipbuilding, costal tourism, electronics,
mining (coal, gold), seafood processing, coffee plantation.
• Economic hubs: Da Nang, Quang Ngai, Hue
South Vietnam
Ho Chi Minh
• 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.
Doing Business in Vietnam.
Growing Middle Class.
Market Studies
available!
•LifeStyle products
•Consumption habits change: Western brands in demand.
•Growing middle class up to 25 mio. people in 2020
Market
studies
available!
Source: Vietnam’s internet association (VIA)
Doing Business in Vietnam.
Green Technologies.
Energy demand expected to
grow by 11 % p.a. (2016-2020)
Renewable Energies
Water Management
Government initiatives to
increase the share of
renewable energies to 6 % by
2030.
Waste Management
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.
Doing Business in Vietnam.
Challenges.
Form of investment & partnership (foreign-owned,
joint venture)
Location (city, industrial park, office)
Administrative Procedures /
Licensing
Labour law / Hiring Process & Key people
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:
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Back-up
EVBN: Who we are. The team.
Pierre-Jean Malgouyres, Delphine Rousselet,
Project Director
Chairman
Jana Ackermann,
Deputy Director
Phuong Thao Nguyen
Legal Consultant
To Anh Su, Project
Accountant
Thanh Cao Nguyen, Events &
Communications Manager
Huong Luu, Business
Center Officer
Ny Ly, Administrative &
Business Support Officer
Trang Le,
Receptionist
EVBN: What we do.
Vietnam. Globalization of Exports.
Vietnam
Suppliers
Source: Vietnam Customs, Figures from 2013
Clients
28 %
19 % (24.4
bn. USD)
19 %
18 %
9%
15 %
8 % (9.5
bn. USD)
10 %