References

Geller, M. (2008, June 2). Report calls Vietnam best emerging market for retailers. Reuters. Retrieved, July 15, 2010, from http://www.reuters.com/article/idUSN3033206520080602

Kwintessential. (n.d.). Vietnam – language, culture, customs and etiquette. Retrieved July 15, 2010, from http://www.kwintessential.co.uk/resources/global-etiquette/vietnam.html

Number of retailers soars in first five months (2010, June 22). Vietnam Business News. Retrieved July 15, 2010, from http://vietnambusiness.asia/number-of-retailers-soars-in-first-five-months/

Price Waterhouse Coopers. (2008). A guide for business and investments. Retrieved on July 10, 2010, from http://Viet Nam.polpred.com/upload/pdf/Viet Nam_guide.pdf?PHPSESSID=kqlifvll56hpj3ccdd frcei034

Ray, N., Dragicevich, P. & St. Louis, R. (2007, August). Vietnam. USA: Lonely Planet

United States Trade Representative. (2007). Viet Nam. Washington, D,C.: Office of the USTR. Retrieved July 15, 2010, from http://www.ustr.gov/sites/default/files/uploads/reports/2007/NTE/asset_upload_file50_10991.pdf

Annotated Links

CIA Fact Book

The CIA fact book is one of the greatest resources on the web for anyone researching or simply browsing for country information.   Its fact book is extensive with information on just about every country in the world.  The site is incredibly user friendly with fantastic graphics and up-to-date information.

The sub-site for Vietnam contains nine major headings.  Visitors can read up about the government, economy, communications, transnational issues, and several other topics.  These headings are generally business and political minded.  These are all accessed via a page that has expansion and collapse options. The ability to stay on a single page while only showing relevant information as needed is a great function.  It enhances readability immensely.

Graphics such as flags and maps are available for larger viewing in pop-up windows.  Additional information often accompanies these pop-ups which enables deeper understanding.  Overall, this site is a fantastic resource for anyone looking to gain an understanding of this country or any other.

Embassy of Vietnam in Canada

This is the official web site for the Socialist Republic’s diplomatic relations in Canada.  It provides useful information such as how to apply for a visa and locations within Canada.    The site appears to be relatively new as some portions of the site are still under construction.  Particularly interesting is the portion of the site that deals with Vietnam-Canada relations.  A look at the milestones between our two countries provides a good historical overview of our continuously developing relationship.

Perhaps the most useful benefit the site provides is a links page.  This page has a variety of business and trade-related links which acts as an invaluable resource for those looking to conduct business abroad.  A small caveat must be noted as some of the links are in Vietnamese with no translation available.

The site is a little skimpy on in-depth resources but acts as a good starting point for those willing to look further. 

US Dept. of Commerce

The US Department of Commerce is a well maintained site that includes a wealth of information on both domestic and foreign trade. Additionally reams of information on Vietnam are readily available. If this is not the case their search function ensures that it is not far from your fingertips.

I chose to pay specific attention to their sub site directly focused on Vietnam and available here. This site provides a resource library, services to help potential businesses if they plan on entering the Vietnamese market, a Vietnam business directory, and much more.

I found their information on how to market your product/service within Vietnam especially helpful. Check that out here. In this strategy article, extensive information is provided on market entry strategy, distribution information, advertising tips, and other information that allows the individual to gain a nuanced understanding of how the marketing mix must adapt when doing business in Vietnam.

Simply, this site provides many benefits. Whether it is to get a good overview of the country , gain in-depth insight, or obtain advice and help, the site caters to many unique needs. It is an indispensable tool and should be bookmarked by any foreign company or individual considering entry into Vietnam’s market .

Vietnam Culture

Vietnam Culture is a great site that provides a wealth of information on this beautiful country.  Included on the site are numerous videos and pictures that allows visitors to get a true feel for what the country is really like.

As the title of the site suggests, it is intent on showing visitors elements of the rich and unique culture of the country. Whether you are looking for information on ethnic groups, traditional clothing, or simply looking for places to visit this site has it all.

You can learn how to make Banh Trung, a traditional rice cake;  check out a water puppet show; or get a fly on the wall look at the country during Tet.   Whatever your desire, the site provides an expansive and detailed look at a variety of topics and interests.  After visiting here you really have no excuse not to fall in love with Vietnam.

Vietpartners

Vietpartners is a business to business firm that arranges partnerships between foreign and Vietnamese companies. It is a homegrown company with deep connections in a variety of industries.  In addition to acting as a liaison for business interests, Vietpartners also provides in-depth resources to visitors.  Up-to-date industry trends and statistics are all available to view for free on the site.  This allows visitors with business goals to research relevant information.

The main headings of the site are Vietnam’s economy, main industries, potential business partners for foreign-owned companies, and more extensive information about Vietpartners.  These are all easily found on the home page.  The site design is simple and easily navigated.  The simplicity of this navigation aids visitor’s experience, allowing them to find important information quickly and painlessly.  Vietpartners provides users the necessary knowledge to seriously consider whether partnership is the best company strategy for your goals.  

Trend Watch

Trend Watch is a weekly segment that highlights emerging trends within Vietnam. Whether its industry, market, or sector specific, here at GMV we always have our finger on the country’s pulse.

This week’s trend watch takes a look at Viet Nam’s retail sector.

In a 2008 report by the Kearney Global Retail Development Index Viet Nam was named the best emerging market for retailers (Geller, 2008). Previously, international companies could only enter to the market via joint partnerships with Vietnamese owned businesses. The relaxing of these restrictions has allowed the country to experience growth despite the relatively small retail sector (Geller, 2008).

Despite its size, this sector of the country has many factors working in its favour. Competition is relatively small due to the historical constraints placed on the country due to its previous communist-oriented economic structure. Additionally, young Vietnamese are migrating to urban centers within the country and with more disposable income than in generations past (Geller, 2008).

Viet Nam is expected to see total retail sales of nearly $76 billion by the end of the year (“Number of,” 2010). Its total number of retail stores and supermarkets will climb to 850 in the same time (“Number of,” 2010). At least 15 major international retailers are already in Vietnam or have plans to expand into Vietnam. Among these are companies such as Wal-Mart, Citimart, Metro Ag, and the Parkson Retail Group (“Number of,” 2010). These foreign-owned businesses have contributed to Vietnam’s tremendous growth in the retail sector where only two years ago the retail market was valued at $20 billion (Geller, 2008).

Business Customs & Practices

A lack of knowledge regarding specific customs and practices unique to a country has derailed many a foreign business opportunity. Included here is a list of some customs to keep in mind:

Appointments are required and should be made several weeks in advance.
Handshakes are used upon meeting and departing. Some Vietnamese use a two-handed shake, with the left hand on top of the right wrist.

Business cards are exchanged on initial meetings and should be presented with both hands. When receiving business cards ensure you show proper respect to it and do not simply glance at it and put it on the table.

Relationships are critical to successful business partnerships. Always invest time in building a good relationship based on both personal and business lines. Any initial meeting should be solely used as a "getting to know you" meeting.

Negotiations can be slow so it is important to bear in mind that decisions have to go through a lot of red tape and also group consultation. Be patient.

Business gift giving is fairly common at the end of a meeting or during a meal in honour of your business associates. Gifts should be small but not expensive. Something with your company logo or something typical from your country both make excellent gifts.

Trade Barriers: Tariffs

Since Viet Nam’s joining of the World Trade Organization (WTO) in 2007 great strides have been made to open the market to increased foreign partnerships and investment. As of this time, Full trading rights were extended to all foreign individuals and companies. This is truly a remarkable accomplishment for the one time closed command economy.

The import duty rates are divided into three distinct categories. According to the
United States Trade Representative, these are:

Normal trade relations (NTR) / most favored nation (MFN) rates that apply to all countries with membership in the WTO

Common Effective Preferential Tariff rates that apply to imports from ASEAN (the South Asia Free Trade agreement) countries.

General tariff rates that apply to all other countries (50% higher than the rates applied to MFN countries) (2007).

Language Considerations

Vietnamese is the official language of Vietnam and the one most common in usage. It is derived from the Asian Linguistic system (Ray, Dragicevich & St. Louis, 2009). In its written form it is mono-syllabic meaning each syllable is presented as its own word. For instance, Vietnam is spelt Viet Nam.

The Vietnamese language is spoken tonally with six different tones existing for each syllable (Ray et al, 2009). To further complicate matters, the four main regions of Vietnam: South, Central, North-Central, and North all have their own dialects and nuances (Ray et al, 2009).

Other than Vietnamese the three most common languages one is likely to encounter are French, Chinese, and English. The French language is mainly spoken by the elder generation, reflecting the years of French colonial rule. Chinese is making a comeback after years of suppression and is reflective of an increase in cross-border trading between Vietnam and China. Likewise English, first introduced during the American occupation of the South during the Vietnam War, is increasingly becoming the preferred second language among citizens (Ray et al, 2009).

Check out the video below for a quick lesson in some very basic Vietnamese phrases.

Vietnam's Economy: A Quick Overview

Beginning in 1986 as the Doi Moi campaign, literally meaning “renovation,"  Vietnam has slowly been governing its economy to evolve from its command past to a socialist-oriented free market. Private enterprise is increasingly encouraged and the borders have been opened to increased foreign direct investment and ownership.

In 2009 Viet Nam had a GDP of $258.1 billion with an annual growth rate of 5.3% (Price Waterhouse Cooper, 2008).

The growing export market reached US$48.4 Billion in 2007 (PWC, 2008). The five largest export categories are oil, textiles, footwear, seafood, and wood products. U.S.A., Japan, Australia, China, and Singapore are the country’s five biggest markets.

An imbalance in trade exists with Viet Nam importing $60.6 billion worth of products in 2007, contributing to a trade deficit over $12 billion (PWC, 2008). This disparity is still relatively small for an emerging economy and should not be noted with caution.