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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"
Contributed by Sam Pyun,
a multi-cultural PANGAEA consultant who recently returned to the US after working in Hanoi this past year for a leading Korean conglomerate.
Focus on Vietnam
Why should you be considering business in Vietnam?
Who’s doing what?
What should you be selling?
Consumer profile
More Observations, Suggestions and Recommendations
What problems will you face?
Latest happenings and trends to watch
- The government continues its efforts to raise much needed capital to fuel investments. Since June '95, there have been bi-weekly auctions of T-bills which have raised a total of $22mil. Bids have been in the 17-17.5% range and Citibank has purchased $1.8mil worth.
- Golf is gaining in popularity. Over $250mil has been invested in golf courses and resorts which will cater to the growing business community and tourists as well as the growing local interest in the sport. Corporate memberships are going for $75,000 and individual memberships as much as $33,000. Vietnam will host its first Asia Professional Golfers’ Association tournament on Dec. 21-24 1995. The success of the investments ultimately depend on the expected growth of local players. This spells new opportunities for equipment suppliers, the travel industry, construction and others.
- There is evidence that the Vietnamese government is taking a tougher stance in negotiations with foreign firms. P&O Australia pulled out of a $19 million joint-venture container terminal project near Vietnam's Ho Chi Minh City, a year after signing the deal. This follows the September 6 announcement by Total SA of France that it would no longer participate in a $1.2 billion oil refinery project because the remote site chosen by Hanoi made little economic sense.
- Vietnam continues to make efforts to improve the efficiency of government. Vietnam's National Assembly approved plans to restructure the state bureaucracy. Eight government offices will be merged into three super-ministries. Also, in a fight against corruption, Vietnam's civil servants were told they would be sacked or demoted if they were caught taking bribes in their dealings with the public. The warning came in a new set of regulations drawn up to improve the operation of the country's vast bureaucracy. Public employees were instructed to be more courteous and to put in a full working day.
- Trying to crack down on perceived abuses by foreign businessmen and overseas Vietnamese who conduct business on tourist visas, it was announced that visitors to Vietnam must now leave the country to renew their one month visas.
- The number of tourists continues to grow, and hit one million last year. Hanoi expects to welcome 3.5 million tourists annually by the year 2000.
- Mastercard has signed up four banks in Vietnam to begin distributing Vietnam’s first-ever credit cards.
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 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.
For more information: Vietnam -- Basic Facts
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