Doing business in Vietnam
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
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
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.
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.
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.
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.
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.
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
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
TradeFairDates Fairs in Vietnam
EventEyes Trade Shows in Vietnam
EUCHAM List of Events & Exhibitions