Vietnam Table of Contents Doing Business in Vietnam __________________________ 8 Market Overview __________________________________ 8 Market Challenges _________________________________ 10 Market Opportunities _______________________________ 11 Market Entry Strategy _______________________________ 12 Political Environment _____________________________ 13 Political Environment _______________________________ 13 Selling US Products & Services ________________________14 Using an Agent to Sell US Products and Services ________________ 14 Establishing an Office _______________________________ 15 Franchising _____________________________________ 18 Direct Marketing __________________________________ 18 Joint Ventures/Licensing _____________________________ 19 Selling to the Government _____________________________ 19 Distribution & Sales Channels___________________________ 21 Express Delivery __________________________________ 23 Selling Factors & Techniques ___________________________ 23 eCommerce _____________________________________ 25 Overview__________________________________________25 Current Market Trends _________________________________ 26 Domestic eCommerce (B2C) ______________________________ 26 Cross-Border eCommerce ________________________________ 27 B2B eCommerce ______________________________________ 27 eCommerce Services ___________________________________ 27 eCommerce Intellectual Property Rights ________________________28 Procedures in handling of administrative violations in e-commerce: ________28 Popular eCommerce Sites _______________________________ 29 Online Payment ______________________________________ 30 Electronic Payment Services _______________________________ 31 Payment Card Switching System ____________________________ 31 Payment Cards ______________________________________ 31 Mobile eCommerce ____________________________________ 31 Digital Marketing _____________________________________ 32 Major Buying Holidays __________________________________ 32 Social Media ________________________________________ 33 Trade Promotion & Advertising __________________________ 33 Television _________________________________________ 33 Internet __________________________________________ 33 Print Media ________________________________________ 34 Outdoor Advertising ___________________________________ 34 Radio ____________________________________________ 35 Trade Fairs ________________________________________ 35 Pricing ________________________________________ 35 Sales Service/Customer Support _________________________ 36 Protecting Intellectual Property _________________________ 36 IPR Climate in Vietnam__________________________________ 38 Due Diligence ____________________________________ 39 Local Professional Services ____________________________40 Foreign Law Firms ____________________________________40 Other Professional Services _______________________________40 Principle Business Associations _________________________40 American Chamber of Commerce Vietnam _______________________40 US – ASEAN Business Council ______________________________40 Vietnam Chamber of Commerce and Industry _____________________ 41 Limitations on Selling US Products and Services ________________ 41 Web Resources ___________________________________ 42 Leading Sectors for US Exports & Investments ______________ 43 Environmental and Pollution Control Equipment and Services ________ 43 Overview__________________________________________ 43 Leading Sub-Sectors ___________________________________ 43 Water Supply ______________________________________ 43 Waste Water ______________________________________ 43 Munic ipal Waste Water ________________________________44 Industrial Waste Water_________________________________44 Solid Waste _______________________________________45 Air Pollution _____________________________________ 46 Opportunities ______________________________________ 46 Web Resources ______________________________________ 47 Education and Training ______________________________48 Overview__________________________________________48 Marketing Strategies __________________________________ 49 Leading Sub-Sectors ___________________________________ 51 Opportunities _______________________________________52 Web Resources ______________________________________ 53 Architecture, Construction and Engineering __________________ 53 Overview__________________________________________ 53 Leading Sub-Sectors ___________________________________54 Opportunities _______________________________________55 Web Resources _____________________________________ 56 Oil and Gas, Machinery and Service _______________________56 Overview_________________________________________ 56 Leading Sub-Sectors ___________________________________ 57 Opportunities _______________________________________ 57 Web Resources ______________________________________58 Franchising _____________________________________58 Overview__________________________________________58 Leading Sub-Sectors __________________________________ 59 Opportunities ______________________________________ 60 Web Resources _____________________________________ 60 Information and Communication Technologies ________________ 61 Overview__________________________________________ 61 Leading Sub-Sectors __________________________________ 62 Opportunities _______________________________________63 Web Resources _____________________________________ 64 Healthcare and Medical Equipment _______________________64 Overview_________________________________________ 64 Leading Sub-Sectors __________________________________ 66 Opportunities _______________________________________67 Web Resources ______________________________________67 Power Generation, Transmission and Distribution _______________68 Overview_________________________________________ 68 Leading Sub-Sectors ___________________________________ 71 Opportunities _______________________________________ 71 Web Resources ______________________________________ 72 Defense Sector ___________________________________ 72 Overview__________________________________________ 72 Leading Sub-Sectors ___________________________________ 74 Opportunities _______________________________________ 75 Web Resources ______________________________________ 75 Trade Regulations, Customs, & Standards ________________ 76 Trade Barriers ___________________________________ 76 Overview__________________________________________76 Customs __________________________________________76 Trading Rights ______________________________________76 Import Prohibitions____________________________________76 Price Registration and Stabilization ___________________________ 77 Automotive ________________________________________ 77 Oil and Gas ________________________________________ 77 Upstream and Mid-stream ________________________________ 78 ICT _____________________________________________ 78 Distribution Services ___________________________________79 Health Care ________________________________________79 Food and Beverage ____________________________________80 Construction _______________________________________80 Banking and Securities Services _____________________________ 81 Investment Barriers ___________________________________ 81 Other Barriers _______________________________________ 81 Import Tariff ____________________________________ 82 Import Requirements & Documentation _____________________ 83 Authorized Importers___________________________________ 83 Import Licensing System_________________________________ 83 Special Import/Export Requirements and Certifications________________ 83 U.S. Export Controls ________________________________84 Temporary Entry __________________________________85 Labeling/Marking Requirements _________________________86 Prohibited & Restricted Imports _________________________88 Customs Regulations________________________________88 Standards for Trade ________________________________89 Overview_________________________________________ 89 Standards ________________________________________ 89 NIST Notify U.S. Service _________________________________ 91 Conformity Assessment _________________ Error! Bookmark not defined. Product Certification ___________________ Error! Bookmark not defined. Accreditation _______________________ Error! Bookmark not defined. Publication of technical regulations ___________________________93 Trade Agreements _________________________________94 Licensing Requirements for Professional Services _______________94 Web Resources ___________________________________94 Investment Climate Statement _______________________ 96 Executive Summary ________________________________96 Openness to and Restrictions upon Foreign Investment ____________ 97 Policies Towards Foreign Direct Investment ______________________97 Other Investment Policy Reviews ___________________________ 99 Business Facilitation __________________________________ 99 Conversion and Transfer Policies _________________________99 Expropriation and Compensation________________________ 100 Dispute Settlement ________________________________ 101 ICSID Convention and New York Convention _____________________ 101 Investor-State Dispute Settlement __________________________ 101 International Commercial Arbitration and Foreign Courts _____________ 102 Performance Requirements and Investment Incentives ___________ 102 Performance and Data Localization Requirements __________________ 102 Investment Incentives _________________________________ 105 Right to Private Ownership and Establishment