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Good Morning Vietnam
10 good reasons to do business in / with Vietnam
1. Inexpensive work force, high labor productivity and skillset
Labor costs in Vietnam are very moderate. Vietnamese are eager to learn, posses a keen perception and has a high work ethic. The country has a high literacy rate and a good schooling system. The labor force is very young and ambitious and each year more than 1 million graduates flood on the job market.
2. Export advantages in taxes and tariffs
Vietnam does not have VAT refund cap as in China. For products with similar input factors to their Chinese competition, this can amount to 10% cost advantage over the Chinese exports.
3. Solid economic growth and a dynamic business environment
Vietnam’s economy has been expanding by 7-8% annually. The World Bank and the ADB forecast continuing economic growth for Vietnam for the coming years. Since 2000 about 20 – 30.000 start-ups have been created every year. Leading economists observe continuous significant improvements in the business environment – factors such as income taxes, regulations and financing.
4. A big, further growing population and an ambitious middle class with a rapidly expanding consumer demand
Vietnam’s 89 million inhabitants (at current growth forecast nearly 95 Million in 2015) constitute a huge market potential, driving dynamic economic growth and increasing disposable income. A consumption-oriented middle class is rapidly developing, particularly in urban areas. The share of citizens in Ho Chi Minh City with an income above 400 USD is forecast to pass the 25% mark in 2009 and roughly 80% of the HCMC population already earn more than 200 USD a month. The backlog on demand is remarkable. ADB and the World Bank expect an increase in national demand of 10% p.a. in the forthcoming years. Poverty decreased during the last decade analogous to international measuring standards of 50%.
5. Attainable First-Mover Advantages along with a distinctive brand awareness of consumers
Sales markets in many industries are just emerging and brand positions are not yet strongly taken. As the Vietnamese population already possesses a distinctive brand awareness, and European / American products generally have a good image, this provides a real chance for First-Movers to establish a leading brand in Vietnam.
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Harvard Business Manager
How to micro-manage in Vietnam - by BDG
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Business in Vietnam
10 good reasons to do business in / with Vietnam
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Vietnam Consulting
Gastkommentar: Dr. Thomas Lanyi-
Director Mekong Capital
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