Vietnam’s Economy

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Vietnam's Economy

Vietnam is a unique civilization with highly cultured people. I chose this country because it is filled with natural beauty, tranquil rural settings, and bustling urban centers. In this period of renovation, Vietnam is emerging as an economic powerhouse in South East Asia. From the bustling commercial center of Ho Chi Minh City to the gracious capital of Ha Noi, local business is flourishing and international companies are lining up to invest in new projects. The nation, strangled by years of war, is now flexing its muscles. To succeed in international business is to understand the uniqueness of the culture you will encounter. The purpose of this report is to inform you of some of the business customs you could encounter in Vietnam.

The climate of Vietnam is subtropical. The average temperature for the country is 84 degrees. The country receives most of their annual rainfall in the summer. The southern moisture air currents move across the land during the summer. When traveling to Vietnam on business during the summer, be prepared for unexpected rainfall.

The unit of currency in Vietnam is the New Dong. One United States dollar is approximately worth 15,000 Dong. The Dong has constantly fallen in value for the last decade. In Vietnam you are not allowed to export the Dong, however, you are allowed to import other forms of currency. You should pay your bills with Dong instead of low denominations of American currency. The standard of living in Vietnam is much lower than the U.S.’s. The value of the Dong is low, and the price for food and supplies are high. Many Vietnamese don’t own cars, the preferred method of transportation is a simple bicycle, or occasionally a bus.

A valid passport and visa are required for all foreigners visiting Vietnam. Vietnamese embassies and consulates issue visas in Vietnam. Business visas are good for six months and provide for multiple entries. Sponsorship by a licensed Vietnamese enterprise is required.

Vietnam’s major exports are petroleum, unprocessed agricultural and marine products, coal, clothing, footwear, ceramics, gemstones, and silk. About 71% of Vietnam businesses are agricultural, 19% services, and 10% industrial. Vietnam’s major trade partners are Japan, Germany, Singapore, Taiwan, Hong Kong, France, and South Africa. The agricultural products produced in Vietnam range from rice, cassava and sweet potatoes to natural rubber, livestock, and sugarcane. Shrimp, mollusks, crab, and other shellfish are main products of fishing. The industrial section of Vietnam produces paper products, cement, textiles, fertilizers, and electronics.

Business procedure has more ritual with government officials than it does within the private area. When you meet with government officials, a local person will accompany you to make your introduction. Shake hands with everyone present in the room. Expect a soft handshake.