OPPORTUNITIES FOR YOUR BUSINESS
Vietnam market is characterized by a large and young population, accelerating urbanization, growing middle-income class, increasing brand awareness as key drivers to consumer market growth. These positive factors make Vietnam very exciting market of rising consumerism and modernisation. There are also enormous domestic demand of high growth economy; strong integration into international trade and supply chains; endeavor of the government to improve legal corridor and business environment competitiveness to draw foreign investment. This combination makes the country a very attractive target for exporters, importers and investors alike.
If you are exporters looking for new markets, Vietnam has good potentials for you in:
Technology: Vietnam industry has grown drastically in recent years with the average growth rate of 11.3% in the 1991-1995 period, 10.6% in the 1996-2000 period, 10.2% in the 2001-2005 period, 14% from 2006 to 2011 and there is uptrend development in future. This shows the fact that Vietnam has mobilized resources and is in high demand for high technology in different sectors to develop industries with high potential and competitive advantages like agricultural and fishery product processing, textiles, footwear, shipping buiding, mechanic-electronic device assembling, means of transportation and wooden products; concentrated on developing infrastructure and energy industries such as electricity, oil, and coal; constructed a comprehensive system of industrial zones, export processing zones as well as encouraged different economic sectors to develop industry, attracting foreign investment.
Consuming goods: The surge in spending power, along with accelerating urbanisation, makes the country one of the most exciting retail markets for foreign retailers in recent years. As consumer preference is gradually shifting from price to quality, many middle-class and affluent Vietnamese consumers are looking for quality imported goods, such as food, beauty and healthcare, fashion, and electronic products.
Services: In recent years, Vietnam eyes the emerging competitiveness of services sectors especially in sub sectors - air transportation services, banking services, business and training services, financial services (insurance, securities, accounting and auditing), maritime transportation services, telecommunication services, and tourism. Vietnam is focusing on addressing weaknesses and leveraging strengths and opportunities, recommendations for a national service sector development strategy.
If you are importers looking for new markets, Vietnam has good potentials for you in
Agriculture, forestry and fisheries: Among the rapidly-growing industrial sectors in Vietnam, perhaps none is more important to the country than agriculture. Seventy percent of Vietnam’s populace lives in rural areas, and, even in today’s industrialised nation, half the workforce depends on agriculture, forestry or fisheries for its livelihood. Besides, Vietnam has a long 3,300km coastline, with huge tidal areas and vast areas of fresh and brackish water suitable for aquaculture. This level of production places Vietnam among the top ten exporters of fish products and top three of rice exporters worldwide. Vietnam is ranked a major global supplier in agricultural and fisheries sectors.
Arts and crafts: Vietnam, having a long tradition in artistic crafts, offers a comprehensive range of art and craft products: woodcrafts; bamboo; rattan, rush and leaves; ceramics; embroidery and lace; textiles; metal arts; handmade paper; stonework; horns, glass and in combination; and fine art. Therefore handicraft products is always one of the top 10 items with the highest export growth rates in all Vietnam export commodities.
If you are manufacturers looking for manufacturing base or outsourcing partners, Vietnam is right decision for you:
Manufacturing base and outsourcing partners: Vietnam is gradually confirm its position as a competitive production base in Asia. Vietnam has been an efficient production base for the international supply chain, with low labour costs and low cost of land use. Although the manufacturing cost is rising with inflation, Vietnam’s manufacturing sector remains competitive relative to many other Asian countries with strong ethnic and high skilled labour force. Nonetheless, infrastructure and logistics have long been a weak area of Vietnam that awaits further improvement. The Vietnamese government has invested heavily in the improvement projects of the country’s transportation network, with the determination to upgrade its infrastructure to support future economic growth. In the context of manufacturing costs surging on the Chinese mainland in recent years, many multinational enterprises regard Vietnam as an alternative location for diversifying their production bases.
Information Technology: Vietnam is quickly emerging as a software outsourcing destination. Some reasons for this success are Vietnam is realized as a low cost quality software maker in Asia and the young generation of skilled workers is highly motivated and technologically advanced. This dynamic generation provides a great pool of skilled software developers required to meet the growing demand of software outsourcing development. Vietnam ranks 20th among the top nations recognized as an excellent outsourcing destinations. As an emerging software outsourcing destination, Vietnam will be a perfect fit for companies looking for a technological advance without having to spend a lot of money.
If you are investor, Vietnam should be considered as a big consideration for your investment solution in various sectors from services to high technology sectors, from light to heavy industry. In recent years, Vietnam’s legal system has greatly improved to create a more favourable and open investment environment. Many laws and regulations regarding investment and enterprises have been enacted to establish a more mature legal framework for foreign investment. These changes have helped create more opportunities for foreign investors, as more favourable forms of direct investment and capital structures are allowed.
