Challenges and opportunities for business in vietnam
opportunities for business
- A comparative
March 13, 2014
Nokia in Asia
• In China Nokia is one of the largest Whole Foreign
Owned Enterprises in China, with presence since
1985 and two major mobile phone factories.
• In India, Nokia has been running the currently
world´s biggest mobile phone factory since 2006.
• In Vietnam, a new mobile phone factory opened
• In these countries, and many others, also sales and
marketing teams and in China and India also R&D.
The circumstances in Vietnam
• All in all Vietnam offers a modern environment for a global export
business - there are diverse operating models for a foreign investor.
• Benefits are based on legislation: If one fulfils the criteria in the
legislation, the benefits will be granted to you. The culture is not one of
customised models per company.
• The phase of negotiating the investment certificate can be slow and
• Vietnam´s ability to utilize the benefits of digitazation and ICT are unique
in Asia, eg. electronic customs clearance functions well.
• Some challenges still in terms of supply of adequate competences, the
Government needs to work on improving the education system.
• At the same time bringing in foreign workers to bridge the competence
gap is not easy enough.
• Some pressure for using local suppliers – there is a need for the
Government to work on improving the skills and competencies of the
• Corruption has not been an issue for Nokia even though it is said to be
common in Vietnam generally.
- When negotiating the investment certificate, a deep knowledge of the legislation
is a key.
- At this stage also a good relationship on the high, central government level is
- In the on going business stage the relationship with the local authorities gains
- Understanding the national interests and the priorities of the 5-year plan, as well
as and target alignment.
- Understanding the key performance indicators of the central and local
- Building and maintaining a network of senior officials who are sympathetic to your
causes, on central and local level
- Engaging experienced local lawyers and consultants. High risk ratio at the
Other points to pay attention to
Watch the following factors
- Economic situation – e.g.budget deficit?
- Political stability – upcoming elections?
- The stage of industrialization – impact on cost
- Membership in WTO?
- General administrative culture - based on legislation or
- Do you have flexibility to react to increased risks caused
by the above factors?