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Vietnam: market potential
& opportunities
Vietnam. At a glance.
Population of
93 mio.
people
Modernization
Gateway to
ASEAN
Emergence of
an urban
middle class
Regional Differences
Growing middle class
EU-Vietnam FTA
Alternative to China
Source : Asia Council Insights
Regional
differences
(Hanoi vs.
HCMC)
Modernization
of industry
Young
workforce
(Golden Age)
Stable
economic
growth
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: 6 %
-
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
• Key industries: oil refinery, shipbuilding, costal tourism, electronics,
mining (coal, gold), seafood processing, coffee plantation.
Vietnamese
populations:
• 69 % rural
• 31 % urban
Da Nang
• 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.
• Growing power consumption
Market Studies
available!
• Growing demand for electricity (higher than GDP)
• Growing demand for high-technology products
• IT services, e-commerce
• Internet coverage in urban areas: almost 99 %
• 121,7 mio. Mobile phone users in 2012: growing fast
•LifeStyle products
•Consumption habits change: Western brands in demand.
•Growing middle class up to 25 mio. people in 2020
• Healthcare / Medical Products
Market
studies
available!
Source: Vietnam’s internet association (VIA)
• Investments in public and private field, especially for medical devices.
• High demand for imported products and brands
• AgroFood
• Almost 50% of the working population, 16% of GDP in 2013
• Vietnamese middle class favours imported food / appreciates good quality
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 6 % 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 do 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,
Chairman
Delphine Rousselet,
Project Director
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 do.
Vietnam. Globalization of Exports.
Vietnam
Suppliers
Source: Vietnam Customs, Figures from 2013
Clients
28 %
19 % (24.4
bn. USD)
19 %
18 %
9%
15 %
8 % (9.5
bn. USD)
10 %