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Vietnam 2018 Vietnam 2018 1 Table of Contents Doing Business in Vietnam _____________________________________________ 5 Market Overview _____________________________________________________________ 5 Market Challenges ___________________________________________________________ 6 Market Opportunities _________________________________________________________ 7 Market Entry Strategy _________________________________________________________ 8 Political Environment __________________________________________________ 9 Selling U.S. Products & Services ________________________________________ 10 Using an Agent to Sell U.S. Products and Services _______________________________ 10 Establishing an Office _______________________________________________________ 10 Franchising ________________________________________________________________ 12 Direct Marketing ____________________________________________________________ 13 Joint Ventures/Licensing _____________________________________________________ 13 Selling to the Government ____________________________________________________ 14 Distribution & Sales Channels _________________________________________________ 15 Express Delivery ____________________________________________________________ 16 Selling Factors & Techniques _________________________________________________ 16 eCommerce ________________________________________________________________ 18 Trade Promotion & Advertising ________________________________________________ 19 Pricing ____________________________________________________________________ 20 Sales Service/Customer Support ______________________________________________ 21 Protecting Intellectual Property ________________________________________________ 21 Due Diligence ______________________________________________________________ 23 Local Professional Services __________________________________________________ 23 Principal Business Associations ______________________________________________ 24 Limitations on Selling U.S. Products and Services ________________________________ 24 Web Resources _____________________________________________________________ 25 Leading Sectors for U.S. Exports & Investments ___________________________ 26 Agriculture _________________________________________________________________ 26 Aviation ___________________________________________________________________ 26 Defense and Security Sector __________________________________________________ 32 Education and Training ______________________________________________________ 33 Franchising ________________________________________________________________ 36 Healthcare and Medical Equipment ____________________________________________ 38 2 Information and Communication Technology ____________________________________ 41 Power Generation, Transmission, and Distribution _______________________________ 45 Customs, Regulations & Standards ______________________________________ 49 Trade Barriers ______________________________________________________________ 49 Import Tariffs _______________________________________________________________ 53 Import Requirements & Documentation _________________________________________ 53 Labeling/Marking Requirements _______________________________________________ 54 U.S. Export Controls _________________________________________________________ 54 Temporary Entry ____________________________________________________________ 56 Customs Regulations ________________________________________________________ 56 Trade Agreements __________________________________________________________ 60 Licensing Requirements for Professional Services _______________________________ 61 Web Resources _____________________________________________________________ 61 Investment Climate Statement __________________________________________ 62 Executive Summary _________________________________________________________ 62 Openness to and Restrictions upon Foreign Investment ___________________________ 63 Bilateral Investment Agreements and Taxation Treaties ___________________________ 66 Legal Regime ______________________________________________________________ 66 Industrial Policies ___________________________________________________________ 70 Protection of Property Rights _________________________________________________ 72 Financial Sector ____________________________________________________________ 74 State-Owned Enterprises _____________________________________________________ 76 Responsible Business Conduct _______________________________________________ 77 Corruption _________________________________________________________________ 79 Political and Security Environment _____________________________________________ 81 Labor Policies and Practices __________________________________________________ 81 OPIC and Other Investment Insurance Programs _________________________________ 84 Foreign Direct Investment and Foreign Portfolio Investment Statistics _______________ 84 Contact for More Information on the Investment Climate Statement _________________ 86 Trade & Project Financing _____________________________________________ 87 Methods of Payment _________________________________________________________ 87 Banking Systems ___________________________________________________________ 87 Foreign Exchange Controls ___________________________________________________ 87 U.S. Banks & Local Correspondent Banks _______________________________________ 88 Project Financing ___________________________________________________________ 88 3 Financing Web Resources ____________________________________________________ 89 Business Travel ______________________________________________________ 90 Business Customs __________________________________________________________ 90 Travel Advisory _____________________________________________________________ 92 Visa Requirements __________________________________________________________ 92 Currency __________________________________________________________________ 94 Telecommunications/Electronics ______________________________________________ 95 Transportation______________________________________________________________ 95 Language __________________________________________________________________ 95 Health _____________________________________________________________________ 95 Local Time, Business Hours and Holidays_______________________________________ 95 Temporary Entry of Materials or Personal Belongings _____________________________ 96 Travel Related Web Resources ________________________________________________ 96 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2018. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. 4 Doing Business in Vietnam “Over the past two decades, our two nations have come together to find common purpose based on common interests. Mr. President, I applaud your efforts to implement economic reforms and increase Vietnam’s trade and investment in all directions. The United States is enthusiastic about reforms that promote economic prosperity for all Vietnamese citizens, as we look to your growing middle class as a key market for American goods and services. I am confident that American energy, agriculture, financial services, aviation, digital commerce, and defense products are able to meet all of your many commercial needs.” President Donald J. Trump November 11, 2017, Hanoi, Vietnam Market Overview The U.S.-Vietnamese commercial relationship has grown since the United States lifted its trade embargo against Vietnam in 1994 and the two countries renewed diplomatic relations in 1995. The U.S. is now Vietnam’s largest export market and a major source of foreign direct investment, helping fuel Vietnam’s remarkable economic growth. The United States has also benefitted from stronger trade ties. Over the last 10 years, U.S. exports to Vietnam increased by 330%, the best performance from our top 50 export markets. This country of over 93 million consumers with a positive view towards the United States exhibits the demographics needed for continuous growth over the next twenty years, and it is a rising star among Asia’s bustling economies. Previously, U.S. firms were slow to take advantage of the growing opportunities that Vietnam presents; however, U.S. firms are increasingly looking towards this market as a key component to their growth strategies in Asia. This Country Commercial Guide is intended to introduce U.S. exporters to doing business in Vietnam and provide the foundation necessary for a firm to take the initial steps needed to pursue business here. Top 5 reasons why U.S. companies should consider exporting to Vietnam: The fastest-growing middle and affluent class in the region, with young consumers who are among the most optimistic in the world providing the right demographics for growth and receptivity to U.S. products and services. Strong long-term growth in U.S. exports. Strong GDP growth expected to continue for medium term. Large population of over 93 million consumers. Political stability in a region known for its uncertainty. Since the launch of Doi Moi to renovate in 1986, Vietnam has moved from a closed, centrally planned economy, towards a globally integrated, socialist-oriented market economy. Over the past 30 years, Vietnam’s average economic growth rate of 5.5% has been second only to China in Asia. In 2017, Vietnam’s GDP growth was a remarkable 6.8% and 2017 marked the third consecutive year of 6% growth. Vietnam started 2018 with high expectations, as the Asian Development Outlook report
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