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Vietnam Country Profile

Vietnam, a country of near 100 million people has risen from the ashes of war into one of Asia’s fast growing dragon economies.

Vietnam, a country of near 100 million people has risen from the ashes of war into one of Asia’s fast growing dragon economies.

Key Features of the Vietnamese Market

  • Since the lifting of the US embargo in 1994 and WTO membership of Vietnam in 2007, the country has seen high growth years, one after another. The industry is manufacturing and export-oriented, and the legislation and government support are finetuned for that. Due to the USD-tied currency, the cost environment is very competitive across all sectors and services. While China is losing some manufacturing activities, Vietnam has grabbed 10% of the total moved value.
  • Vietnam’s most important export sector is now locally assembled electronics, notably Samsung mobile phones and other consumer electronics. Within the last ten years, they have surpassed the traditional textile, shoe and agricultural exports. As of 2021, the share of mobile phones increased to over 20% of the total exports. However, this must not hide under the fact that electronics and machinery are typically assembly industries, and other industries add more value to production. Textile, metal, and wood-based production remain vital sectors providing plenty of opportunities for foreign companies looking for China+1 supply chains.
  • Vietnam presents an attractive market for consumer and professional products. While the middle class is continuously looking for new spending opportunities, the local manufacturers are rapidly investing in new technologies to ensure the quality required by foreign customers and the cost competitiveness needed in the export industries. Both these phenomena create a lucrative sales environment to tap into.

SWOT Analysis Vietnam

Strengths

  • Strong manufacturing industry for outsourcing
  • Very competitive cost environment
  • Politically stable
  • Young workforce eager to learn
  • Free Trade Agreements with practically all developed countries/regions

Weaknesses

  • Languages skills are still hindering communication
  • University-level education not sufficient to fill western needs
  • Infrastructure in remote areas, lack of fast transport or railways
  • Red tape and bureaucracy

Opportunities

  • Rapidly growing middle class with increasing purchasing power and looking for new products
  • Best choice for alternative supply chains for China
  • Automotive sector in high growth
  • Environmental business in general

Threats

  • China foreign policy ripple effects and territorial disputes in the East China Sea
  • Covid-type global pandemics requiring quarantines and crippling the manufacturing industry and logistics

Our Experience

  • We have been here for over 10 years, opening the markets for several customers and supporting outsourced manufacturing metal, textile, wood, plastics and electronics industries.
  • Our core competencies are the Partner- and Supplier Search process, which helps foreign customers to come and visit only qualified partners after a rigorous selection process done in advance.
  • We consider ourselves as the Vietnam specialist and together with our customer’s knowledge of their offering we have a dream team for success.

Our Reach

  • Our extensive networks within industries and authorities ensure we can proceed rapidly and with confidence with our contacts.

Our Core Services

  • Market Entry
  • Market Expansion
  • Partner Search
  • Supply Chain Management
  • Outsourcing
Managing Partner – Vietnam

Are you ready?

Is your company considering expanding into Asian markets?

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Perhaps we can help you – so connect with us here. We’re ready to engage you – let us know how to help you improve your impact in Asia.