REVIEW online event: VIETNAM - THE BETTER CHINA?

• Vietnam has the lowest market barriers in Asia and is consistently committed to free trade. Example: EU Free Trade Agreement with Vietnam (EVFTA). This means no import fees on EU goods, including pharmaceuticals, chemicals, or machinery; over the next ten years, further relaxations are to follow for many other goods. The agreement strengthens not only trade and investment, but also economic, social, and technological cooperation between the countries (the implementation of the Paris Climate Agreement, adherence to higher standards of labor rights, consumer protection and environmental protection).
• Vietnam is part of the RCEP (Regional Comprehensive Economic Partnership), the largest free trade area in the world.
• Vietnam is open to Western imports; its main trading partners are Japan and South Korea. Germany is Vietnam's second largest food importer. Within the EU, Germany is Vietnam's largest trading partner.
• The founding of a company in Vietnam is possible with 100% ownership.
• The population in Vietnam has a low age average, the society as a whole is performance oriented and has a strong focus on education. Average salaries are moderate compared to Malaysia below 30%   China below 50%  Thailand below 60%
• Stable conditions prevail in Vietnam, the digital agenda is being pushed forward, as well as infrastructure development (example air transport: Vietnam currently has 23 airports: 9 international and 14 domestics. The country is expected to have 26 airports by 2030 and 30 airports by 2050).
• Unlike Germany, China is not seen as a threat by Vietnam, but is integrated as an economic partner.  

• For Vietnamese, studying is extremely important - there is a university in all provinces of Vietnam - but there are differences in quality. There are no immatriculation and / or tuition fees, with exception of international universities (ex. cost MBA 8,000-15,000 USD).
• The female employment rate in Vietnam is 73%. The rate of women in management positions is 36% (compared to the Eurozone 26%, Germany 18%).
• Vietnam has a great affinity to Germany. Especially through the new German states, Vietnam and Germany have close historical ties that are unique in the region. 120,000 Vietnamese live permanently in Germany, and more than 100,000 were educated in Germany but live in Vietnam, where many work in key positions in business, administration, or politics.

Vietnam and the Ukraine conflict:

Vietnam does not participate in sanctions against Russia and does not want to have to choose sides. However, Vietnam is in favor of ceasefire and ending the war.  Vietnam aims at good and prosperous relations with Ukraine as well as Russia and wishes these countries to continue dialogues, as well as find long-term solutions in the interests of both countries.

Industrial challenges of Vietnam are currently in the sector of metal processing, while subcontracting for high-tech products is still difficult but growing strongly.  Other challenges are corruption, job hopping and the lack of technical specialists.

This can be overcome through good consulting, the right network and adhering to local culture and customs.

Family has a very high value in Vietnamese society and if you succeed, as in Gerhard's company, that the employees consider the company as a second family, their motivation, identification, and loyalty to the company is certain.

Numerous discussions in the end made the conference a very lively and interactive event.

The decision into which country to expand depends ultimately on the goal of the company itself.

We would like to thank ticommunication for the great collaboration and the fun during the preparations for this event and a special thanks to our speakers Gerhard and Axel as well as our audience for the numerous participation and interesting discussion.

We hope to see you at our next event.

For more information about expansion, business development in Southeast Asia, please contact us at: info@expandeers.com