Brief presentation of the Vietnam Business Environment

1. ENTRY INTO THE MARKET OF
VIETNAM

2. President Truong Tan Sang
1 Philippine Peso = 446 Vietnamese Dong
1 US Dollar = 22,727 Vietnamese Dong
1 Ghanaian Cedi = 5,162 Vietnamese Dong

3. Geographical
 Vietnam shares
boarders with China
to the north, Laos
and Cambodia to the
west.
 The total area of
Vietnam is over
330,900 kilometres

4. Political and Legal
Environment
 Socialist Republic
practices Single-Party
state form of government
 National Assembly enacts
laws; the government
issues decrees, Ministries,
Circulars; and various
other authorities issue a
plethora of other legal
instruments and
guidelines

5. Economic Environment
 GDP growth of 6.7% in
2016
 GDP growth of 6.2% in
2016
 GDP will hit 6.3% in
2017
 The average growth rate
of their GDP for the last
20 years is approximately
7%.

6. Sectorial Contributions to Vietnames GDP
Industrial
Manufacturing
Agricultural
16%
51%
33%

9. Business Etiquette
 Vietnamese takes much
pride in their language
 Vietnamese cherishes face
to face business meeting
 Respect must be shown
according to rank and
seniority

10. Immigration Issues
 business visa is issued to
foreign individuals who
conduct business in
Vietnam
 They also have certain
exceptions under treaties or
other reciprocal agreements
with some countries

11. Forms of Business
 Limited-liability Company
 Joint-stock Company
 Partnership
 Branch
 Representative Office
 Business Cooperation
Contract
 Public and Private
Partnership Contract.

12. Taxation

14. Representative Office Strategy
Advantages
 It can act as a liaison office for the
company in Vietnam
 It can conduct market research for
the company to get first-hand
information about the market in
Vietnam.
 The office will promote its parent
company’s business and investment
opportunities in Vietnam.
 The Representative office can
provide a wide range of ancillary
support to their foreign-based
parent companies
 Short Registration Period
Disadvantages
 Representative Office is not
permitted to conduct commercial
or revenue generating activities
such as the contract execution,
receipt of funds, sale or purchase
of goods, or provision of
services.

15. References
• Doing Business in Vietnam Guide (2017) co-published by the
Vietnam Chamber of Commerce and Industry (VCCI) and
PwC Vietnam
• https://www.state.gov/r/pa/ei/bgn/4130.htm
• http://www.vietnam-briefing.com/news/vietnamese-growth-
slows-546.html/