November 1995...

In our efforts to reformat the newsletter and provide actionable and timely perspectives, business trends and insights, we present a special focus this month. Our focus on Vietnam offers an insider's perspective and point of view on the opportunities and barriers to conducting business in this market. It is a think-piece, intended to spark discussion in our pangaea.talk.NEWS(tm) bulletin board.

Please feel free to share your comments, opinions and ideas about Vietnam as a business opportunity for Asia, Europe, the Americas, etc.


"Doing Business in Vietnam-- an insider’s perspective"



Focus on Vietnam

Why should you be considering business in Vietnam?

Who’s doing what?

Regionally, the type of investment differs from North to South.
Most of the trading and commercial activity is centered in the south (HCMC), whereas the north (Hanoi) is concentrated on large projects.

Taiwan and Hong Kong are active in areas such as textiles, garments and real estate, driven by numerous small enterprises. Japan and South Korea have been competing for much of the larger industrial projects such as petrochemicals, power and heavy industry.

The top six foreign investors in Vietnam, by country are:

Asian companies have been more successful than western counterparts in securing project approval, in part, due to their understanding of approval-getting practices. As such, 2/3 of the projects since the Doi Moi launch have been by the top 5 investors (above).

Following the recent formalization of diplomatic ties between the US and Vietnam, the US should be in a position to garner some kind of a psychological edge (the honeymoon period). There should be, arguably, a temporary bias from Vietnam in favor of US firms when securing bids for projects. Other countries, especially Japan, building on the US commitment to Vietnam, are likely to strenghten their own presence through heavier investment.

Until now, the US appears to be reacting relatively cautiously. The great influx of US investment, following the establishment of diplomatic ties, has not been as rapid as expected. One factor may be centered on the difficulty in obtaining risk guarantees from US institutions. However, many insiders feel that both the US and Japan will soon begin showing their full potential, possibly taking a greater share of the pie, moving into leadership roles in the market.

Overall, the end effect will be positive for both Vietnam and the plethora of foreign investors as the government seems to be poised to distribute the mix of investor sources as evenly as possible.

For more information about investing in Vietnam or other foreign markets, or if you would like an in-depth market study, contact PANGAEA, International Consultants. With an extensive network of marketing consultants, attorneys, logistics experts and more around the world, PANGAEA is uniquely qualified to offer hands-on, local marketing and management consulting services.

What should you be selling?

Consumer profile

More Observations, Suggestions and Recommendations

What problems will you face?

Latest happenings and trends to watch

To keep up on what's new in Vietnam this month, keep checking back here for regular news "snippets," as they occur. And if you have news to contribute, we'll print it.

For more information: Vietnam -- Basic Facts

MORE NEWS ON THE HORIZON...



ARCHIVES

May 1995
June 1995
July 1995
August 1995
September 1995
October 1995



SEARCH PANGAEA.NET



We are publishing a monthly newsletter, containing snippets of useful marketing information for global business people. Moreover, we accept contributions to our newsletter (as long as the information is verifiable -- and will print by-lines). This newsletter will be distributed for free on a monthly basis.

Contributors wishing to advertise their own publications are also encouraged to submit articles. Advertisers will have links back to their own sites or to their web pages in pangaea.net's Interactive Global Marketplace (tm). -- your global business directory. Charter rates are available for this service as well. There are a host of benefits derived from advertising in pangaea.net's newsletter.

As for access to full text articles, more frequent newsletters, newswires and PANGAEA's proprietary resources -- databases, consulting services, etc., there will be a fee. Contact us for rates.


(c) 1995 PANGAEACommunications. All rights reserved. No part of this file may be copied, distributed or disseminated in part or in whole without the express prior written permission of PANGAEACommunications Reprints of this issue are available for US$250.00 per copy.