Risk management is an important part of doing business in Vietnam as the country continues to integrate further into the global economy. While risk is an inevitable part of any business, properly managing risk is key to profitability and shareholder value. However, many businesses operating in Vietnam do not effectively manage risks such as political and regulatory risks, and risks of non-payment by partners. Conducting thorough due diligence on potential business partners through corporate intelligence investigation can help foreign investors understand partners and their businesses better to mitigate risks. As Vietnam works to recover from the global financial crisis, effective risk management will be important for businesses to withstand economic fluctuations and take advantage of growth opportunities.

1. Risk Management Necessity in Vietnam?
As Vietnam further integrates into the world business, more investors are eyeing
Vietnam for investment. As part of investment due diligence, risk management are
always well considered before foreign investors decide to do business with
Vietnam partners.
In any parts of the world inluding Vietnam, risk is an inevitable factor in business
operation activities; higher return is always accompanied by higher risks. Coping
and managing risk is an integral part of any business in order to make profit and
create value to shareholders in import export transaction, investment, or merger
and acquisition activities in Vietnam.
However, in our daily consulting practice, we have seen a number of businesses
whom do not manage risk effectively and furthermore not fully understand about
the risks that they are facing.
Typical risks in developing countries like Vietnam are political risks, policy risks,
regulations risks, credit risks, bribery and corruptions, and organized crimes.
On daily transaction in trading, according to Vietnam Ministry of Industry and
Trade, there are situations a number of corporatescams between Vietnam and
foreign enterprises are reported. In particular, foreign companies sell goods or
provide services to partners in Vietnam and in return the Vietnam partner fail to
pay.
On a larger scale in FDI through business formation or M&A origination and
execution, businesses that do not improve the risk management process will have
to face with a lot of different types of risks: serious financial losses, adversely
affecting cash flows and the value of shares, decreasing prestige with customers,
employees and investors.

2. Many business leaders often put heavy emphasis on the business activity, profit,
and revenues instead of concentrating more on risk management especially
understading business partners through corporateintelligence investigation,
background studying, adverse media search through professional consultants in
Vietnam whom understand languages, cultures, legal environment and busieness
practices. Further searches could help foreign investors to understand the company
itself, owners, shareholders, members of board of directors of partner companies
whom make daily decisions of the business.
In the period that global crisis has been predicted that almost bottom out and start
to show signs of recovery, although the recovery process canoccurwith different
speed and characteristics depending on sectorand location of the business, the
fully preparation of business in all aspects including process and risk management
strategy could helps business not falling into the passive and also have more
possibilities to take advantage of growth opportunities after the recession.
Recently in Vietnam with the impact of high inflation rate and economic recession
caused by the global financial crisis, enterprises are increasingly concern about risk
management activities. Many experts believe that an effective and well organized
risk management system will help businesses withstand and overcome fluctuations.
ANT Consulting is here to assist you from the outset; providing corporate
intelligence, risk advisory, management consulting services that assist market
entrance, and ensure efficient business start-up operation. Our services are as
following:
Market Entry
Tax Advice
Legal Advice
Outsourcing Services

3. We strive to save your costby guiding you towards economical solutions that
comply with local legislation and procedures. Wesupportyou through early
logistic solutions and carry you through as your business grows. We aim to bridge
the gap between international best practices and local cultures and assist foreign
companies and organizations entering Vietnam market to overcome commercial
and regulatory issues.
We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779. To learn
more about us, please visit www.antconsult.vn