Aseem, the Managing Director of Factum Global Asia, has vast experience in key markets across the Asia Pacific region spanning over 30 years. Vietnam, in particular, is currently at a pivotal moment in history, attracting attention due to large corporate investments, Free Trade Agreement (FTA) discussions, and its strategic role in global geopolitics. The country has experienced significant economic growth, marked by the rise of international brands like Starbucks and McDonald’s and a surge in foreign investment and GDP growth rates.
Vietnam’s potential as a lucrative market is evident in its youthful demographic, strong female workforce participation, and high literacy rate, attracting multinational corporations looking to invest. The country’s economic transformation has been steady, with a notable increase in Foreign Direct Investment (FDI) and a rise in global tech giants setting up operations in Vietnam. The initiative to diversify supply chains, driven by geopolitical tensions between Beijing and Washington, has further propelled Vietnam as a preferred destination for investments.
Despite the positive outlook, Vietnam’s business landscape presents challenges such as complex legal and regulatory frameworks, currency controls, bureaucratic delays, and infrastructure bottlenecks. However, the government has made strides in simplifying the tax system, reducing corporate tax rates, implementing banking reforms, and improving infrastructure. The response to feedback, such as expanding visa-free regimes, implementing eVisas, and enhancing foreign connectivity, has led to an increase in tourist arrivals and a positive outlook for the future.
To effectively navigate the business landscape in Vietnam, it is essential to create a local strategy, exercise patience, and seek local expertise. Understanding the unique market dynamics and complexities, leveraging local networks for guidance, and embracing the cultural nuances of doing business in Vietnam are crucial for success. Overall, optimism prevails in the Vietnam market, with opportunities emerging for business leaders who approach the market with caution and optimism. As businesses explore opportunities in Vietnam, they can benefit from leveraging the country’s strong growth potential and high expectations.
