Vietnam is proving to be one of the most successful markets and it is offering far-reaching success and opportunities to various exporters and the investors. The economic growth of the Vietnam’s economy has proven to be one of the highest in the world economy, and it is expanding at an average of seven percent a year and this rate has been seen from the year 2002 to 2011. One can very well imagine the growing success of the economy. On the other hand, Vietnam saw a growth in the industrial production at the rate of twelve percent during the above-mentioned period. Even in the year 2012, the economy is expected to grow at about the same rate. However, the inflation problem poses to be the major problem though Government is taking various measures that can be seen controlling the macroeconomic policies and implementing price stability measures, which in turn would balance targets for growth. The industrial inputs are making constant growth as Vietnam imports chemical, software. Growth is also paving its way through the other sectors of the market like the manufacturing sector, construction, and tourism, and the investors are becoming fairly interested in making necessary investments in sectors like gas and electricity.
Opportunities in the market of Vietnam:
Having a large of population of eighty-nine million, continuous economic growth and enduring reforms, the economy of Vietnam is not less than any other economies in the world where existence of attractive opportunities are concerned. The commercial environment prevailing in the market is one, which is very dynamic, and it is evolving every second. The market is always welcoming foreign firms, majority of which are involved in the sales of equipments and also management services which are related industrial as well as export sectors of the economy. Far reaching growths in the service sectors and also the consumer sectors can be observed. Government plays an important member in the success of the economy and it maintains majority ownership in the most sensitive, strategically inclined industries, large industries even though it renders various opportunities to the foreign companies and investors. Foreign companies also have a fair hand of investment in sectors like telecommunication, exploration of oil and gas, aviation, education, and environmental projects because the infrastructure also is making fast development in the economy of Vietnam and is expanding with every passing day. Demand for the consumption products like meat, dried fruits, dairy products is also increasing which also can prove to be an attractive option in which the foreign investors can explore.
Market strategy applied:
One might appoint a distributor or an agent for doing business in the Vietnam economy as this would help a great deal to get the initial foothold and also in the later years. But at the same time, one who is new in the Vietnam market must make sure that the different permits, capital, man-power of the agents as well as the distributors are all in place. Any company who is intending to enjoy a direct presence in the market should do so by first obtaining a representative office license, secondly it should obtain the branch license and then a foreign investment project license. All these things should be conducted under the Foreign Investment Law of Vietnam.
Carrying on business through a distributor and agents in the Vietnam market:
The legal protection is clearly stated in the distributorship agreement. A distributor is one who purchases goods from a foreign supplier meant for resale in the Vietnamese market and the distributor is liable for the whole amount of goods whereas the agent sells goods in the market for the purpose of commission. The agent may also look for sales lead, provide with necessary market intelligence, sales promotion, after sales services, and other specific responsibilities as mentioned in the contract of agreement between the supplier and the agent. In case of agent, the risk of non-payment rests upon the supplier. While appointment of the agents or distributors, the suppliers should ensure that, they have legal permits, facilities. The contracts should state each party’s rights and obligations clearly and should state the procedures for dispute resolution.
Retailing and wholesaling in the Vietnamese market:
In the recent times, the retail scene of the Vietnamese market has seen rapid growth and transformation that has led to successful opportunities for new ventures for marketing the products. Various showrooms are being set up in the market for specialized products like the automobiles, electronics, which has led to the widespread of these products in various parts of Vietnam. Any company having the license to set up a retail business can establish a sales outlet and for more outlets to come up, the company needs to take approvals from the appropriate local Department of Planning and Investment. Even in the wholesaling section, Vietnam is seeing success and more success. The law of Vietnam states that wholesaling does not mean selling goods to the end users but to the other business entities which would again resale them. Foreign companies who are involved in the business of wholesaling should make sure that the reseller has necessary license to engage himself in the wholesaling business.
Thus, one can say without a doubt that the Vietnamese market provides a broad horizon of success to those who dare to explore the market. With wide range of opportunities ranging from wholesale to retail, one is never short of these opportunities in this economy. Vietnam is one of the fastest growing economies in the world and it continues to do so with further growth and expansion as well as dynamism and diversification.