Doing business in Vietnam

Country Overview

The Socialist Republic of Vietnam (Vietnam) is 1,650 kilometres long and from 50 kilometres at its narrowest point to 600 kilometres wide. It borders China, Laos, Cambodia, the Gulf of Thailand and the South China Sea. Its population of 91 million people, constituting the world's 13th largest population and the third largest in ASEAN.

Vietnam now becomes more internationally competitive and open to foreign investment with an average annual growth rate of 5.3%. Vietnam is committed to the long-term objective of global economic integration through participation in a growing network of free trade agreements ie. the WTO, the APEC, the ASEAN Free Trade Area (FTA), Vietnam – EU FTA, the ASEAN-Australia-New Zealand FTA (AANZFTA) and the Trans-Pacific Partnership Agreement (TPP).

The country has been cited as having the fastest growing middle class in the Southeast Asian region, with young consumers (63% under 35, median age 27) who will drive the right demographics for growth.

Facts About Vietnam

See the useful links to the Vietnam country fact sheet for more detail

World Bank Group                                                              Doing Business

US Commercial Service                                                     Vietnam at a Glance

Export.gov                                                                            Vietnam Country Commercial Guide

United States Department of Agriculture                        Vietnam

U.S Department of State                                                    About Vietnam

Major Industries

Vietnam is a world leader in emerging markets, reaching Tier 1 In Gartner’s Leading Offshore Service Destinations 2015 report, alongside China and India. The country has more than 290 universities and colleges offering Information and Communications Technology (ICT) courses, both ranked in the top 20 of Tholons’ Top 100 Outsourcing Destinations 2015. The Government support through provision of tax incentives keep Vietnam high in the list of outsourcing destinations.

Vietnam’s population is migrating rapidly from rural to urban areas – marking the decline of agriculture and the rise of manufacturing and services. Vietnam’s agriculture still accounts for some 70% of employment, but contributes only 17 % of GDP while being a global agricultural player in several commodities i.e. rice, pepper, coffe, cashew, rubber…

See more information on the Major Industries in Vietnam

Manufacturing 

By taking advantage of its skilled workforce and low costs, Vietnam has emerged as one of the most successful manufacturing hubs in Asia. Prominent manufacturing sectors in Vietnam include textile, garments, furniture and electronics. Over the past few years, manufacturing in Vietnam has taken an upturn, with renowned international firms such as Samsung Electronics, Intel and Siemens setting up factories in the country. This makes it attractive for manufacturers to manufacture in Vietnam as it can integrate Vietnam into its existing supply chains.

Agribusiness

Agriculture is fading as the most important economic sector in Vietnam as it employs more than half of the population, However, the output value of both manufacturing and services has surpassed this sector, agriculture is still the main source of raw materials for the processing industries and a major contributor to exports.

Vietnam’s main agribusiness industries are seafood, rice, coffee, fruit and vegetables, and meat – all targeted for ambitious growth through to 2020. Vietnam’s meat industry is undergoing rapid modernisation and expansion, particularly in the area of cold chains. Exports of more than 1.55 million MT of raw pork and processed meat products are forecast by 2020.

Services

Vietnam’s services sector is growing fast with some major sub-sectors include banking and finance, insurance, tourism, and offshore services such as data, Business Process Outsourcing (BPO), and IT. Building on its expanded pool of university graduates, Vietnam has the potential to become one of the top ten locations in the world for offshore services.

Other Emerging Industries

Vietnam is actively fostering a number of key emerging industries in its pursuit of rapid economic development.

Logistics

The Vietnamese Government has set an ambitious goal of becoming an industrialised country by 2020. It’s believed that trade competitiveness, primarily driven by productivity enhancing freight logistics, can play a major role in this multi-pronged effort. This includes making freight itineraries more reliable, making roads safer and more conducive to high-volume commercial use, increasing port sector efficiencies, and better integrating barges, trucks, warehouses, and gateways.

Healthcare

Spending on healthcare services in Vietnam is increasing steadily. There are over 1,000 hospitals operating across Vietnam, of which over 90% are state-owned.

Other emering industries are electronics, agricultural machinery, agro-fishery processing, and environmental industry and energy conservation. These industries are viewed as playing a leading role in attracting foreign investments and popularising technologies and skills in the economy.

Business Practices

Proper Vietnamese business etiquette is essential to gain new partners and clients in the Vietnamese business community.

See more Business Etiquette in Vietnam

American Chamber of Commerce                   Do’s and Dont’s for Business Practices in Vietnam

Eucham                                                                 Doing business with Vietnam

The British Business Group Vietnam              PwC-HSBC Guide to doing business in Vietnam

Austrade                                                                Doing business in Vietnam - Business practices

ForeignStaffing                                                    Vietnamese Business Etiquette

International Enterprise Singapore                   Doing business in Vietnam

Vietrade                                                                 Business Etiquette

HR Solutions Vietnam                                       HR Survival Guide for Foreign Managers in Vietnam

How USIS Consulting can help

To further explore business opportunities in Vietnam, please contact our offices in the U.S. and Vietnam. Our staffs will help you answer questions to assess your business potential in Vietnam. Click here

Useful Links & Resources

Government, Trade & Investment

National Assembly of Vietnam                                                        www.quochoi.vn

Ministry of Foreign Affairs                                                               www.mofa.gov.vn

Ministry of Industry & Trade                                                            www.moit.gov.vn

Ministry of Planning & Investment                                                 www.mpi.gov.vn

General Department of Vietnam Customs                                     www.customs.gov.vn

Vietnam Trade Promotion Agency                                                  www.vietrade.gov.vn

Investment & Trade Promotion Center                                           www.itpc.gov.vn

Vietnam Chamber of Commerce and Industry (VCCI)               www.vcci.com.vn

United Nations Vietnam                                                                    www.un.org.vn

American Chamber of Commerce in Vietnam (AmCham)         www.amchamvietnam.com

U.S. Embassy & Consulate in Vietnam                                          https://vn.usembassy.gov

Vietnam Embassy in USA                                                                 www.vietnamembassy-usa.org

News and Media

Vietnam Economic News                                                                 www.ven.vn

Vietnam Investment Review                                                             www.vir.com.vn

Vietnam News                                                                                      www.vietnamnews.vn

Trade Shows & Trade Events

All World Exhibitions                                                                      Allworld Exhibitions, Vietnam

n’Tradeshows                                                                                       Trade shows in Vietnam

Jetro                                                                                                       Online Trade Fair Database (J-messe)

TradeFairDates                                                                                   Fairs in Vietnam

EventEyes                                                                                             Trade Shows in Vietnam

EUCHAM                                                                                             List of Events & Exhibitions