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In recent years, Vietnam has been known as a strategic place for many foreign investors to do business. In 2019, Vietnam’s GDP (Gross Domestic Product) was 7 percent, the country is one of the fastest-growing economies in Asia.
In the following article, we will decode all business information about Vietnam, from the business culture in Vietnam to how to do business in Vietnam?
Business lines should be chosen to invest in Vietnam, etc.
As with many other Asian cultures, the business culture of Vietnam is different from Western culture. If in some Western countries such as the USA, Australia, and the United Kingdom, people tend to prefer formal meetings in business activities whereas Eastern countries, personal sharing, and development of closer long-term bonds are more favored and encouraged.
The concept of face and social connection are important cultural factors that affect business activities in Vietnam. Foreign businessmen should be aware not try to direct disagreement or refuse the proposals from the partners which can be considered as a person to ‘lose face’ in Vietnam. The face is a concept that can be described as reflecting a person’s reputation, dignity, and prestige.
If you have a suggestion, it is recommended that you should discuss it in private and treat your partners with respect. Sharing your personal information about your family and hobbies is also a good key to build and improve business relationships with Vietnamese partners.
Hiring a Vietnamese interpreter, and having a local Vietnamese representative is the right strategy to promote and negotiate with potential Vietnamese supply partners.
Vietnam is considered as the land of opportunities for both local and foreign investors. Low Expenses; Free Trade Agreements; Government Support; Young, Skilled Population; Strong Economic Growth Rates; Infrastructure Development; etc. are attractive factors that made Vietnam one of the best destinations to do business in Asia.
As foreigners, you can choose one of two types of companies to do business:
Generally, foreign investors will go through the basic following steps to set up a business in Vietnam:
Business Visa is required for most foreign investors (except citizens of Visa Waiver Countries). There are two ways to get Business Visa:
According to Global Business Services Company (GBSC), restaurant and bar, garment and textile items, home furniture making and remodeling, exportation, and e-commerce business are the best businesses to start in Vietnam.
Restaurant and Bar is a great business service in Vietnam. Vietnam food culture has become popular. Vietnameses have a passion for good meals and drinks. People tend to spend a few hours relaxing at a nice restaurant or bar after a difficult day’s job.
Garment and Textile are among items that Vietnam exports, this is a lucrative business in Southeast Asia. You can open your textile and garment Company which focuses on making ready-to-wear. You are also likely to consider becoming a cloth merchant or start an online clothing business. There are no differences between these businesses as all are profitable equally.
Investment in the home furniture making is not a bad idea, in fact, many businesses and businessmen far away source for home furniture from Vietnam that they take to their countries for resale.
Rice, coffee, crude oil, footwear, rubber, electronics, and seafood are Vietnam’s most valuable export products, so there are a lot of opportunities to sell these valuable products to buyers from other countries.
There are a huge number of Internet users in Vietnam (more than 60 million), and the numbers are predicted to continue increasing in 2020. Online business is an attractive business for all local and foreign investors. The cost to set up the business is not high as there is no official minimum capital requirement in the country for most business lines.
Cost is one of the reasons that made foreign investors choose Vietnam for their investment. Thecost to conduct business in Vietnam is low. Vietnam’s labor costs are competitive and operation costs are also estimated to be cheaper, at about one-third of the levels in India.
You can consider starting your business in three zones in Vietnam including Hanoi (Capital city), Da Nang (3rd largest city, important seaport), and Ho Chi Minh City (largest and most populous city).