Vietnam: market potential opportunities

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 : http://www.eurochamvn.org/node/13685 General Statistics Office of Vietnam - GDP growth: % - 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 % 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 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: http://evbn.org/ 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 Vietnam Globalization of Exports Vietnam Suppliers Source: Vietnam Customs, Figures from 2013 Clients 28 % 19 % (24.4 bn USD) 19 % 18 % 9% 15 % % (9.5 bn USD) 10 % [...]... 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: http://evbn.org/ Back-up EVBN: Who we are The team Pierre-Jean Malgouyres, Delphine Rousselet, Project Director Chairman Jana Ackermann,