Due to the recent economical and political reforms the Vietnamese economy has transformed from one of the poorest in the world to a lower middle-income country. The current growth rate of GDP averages around 6.4% in the 2000s. This is expected to remain due to the export oriented manufacturing.
Business in Vietnam
Doing business in Vietnam is an interesting opportunity for many multinational firms as the Vietnamese government aims to reform its policies and emphasizes the need to accelerate implementation. Targets include sustainable development, social equity and macroeconomic stability. This in combination with the growing middle class whose spending pattern is rapidly changing towards more luxurious goods. Additionally, the government gives tax breaks to foreign investors in order to encourage foreign investment. Currently the Netherlands is Vietnam’s biggest (cumulative) investor. Doing business in Vietnam can be perceived as a challenge due to many factors including legal and cultural aspects as well as increasing competition from many Asian economic superpowers such as China and Japan, who are looking to expand to the Vietnamese market.
The Netherlands & Vietnam
Many Dutch multinationals are active in Vietnam. Due to the changing consumer behaviour, brands such as Friesland Campina and Heineken are rapidly increasing their market share and building a reputation as premium brands. This creates promising prospects for other multinational firms looking to expand operations to Vietnam. Additionally, there is a lot of bilateral trade between the Netherlands and Vietnam, actually the Netherlands is Vietnam’s second largest EU trading partner.
These factors make Vietnam a promising destination for the FSR International Research Project 2017-2018