“With 90 million people, the Socialist Republic of Vietnam is the 12th most populous country in the world (65 per cent of the population is under 30). For two decades after the 1975 reunification, deeply conservative leadership policies were a ball and chain on economic growth. Since 2001, however, the Vietnamese Government has firmly wedded itself to economic liberalisation, implementing structural reforms to modernise the economy and create more competitive, export-driven industries. Vietnam became the World Trade Organization’s (WTO) 150th member in 2007.”
Daniel Allen, from IN THE BLACK, wrote an article on the compelling reasons to do business in and with Vietnam, as those are numerous.
David Carter, CEO of Odyssey Resources, advised that after some difficulties keeping inflation under control while boosting economic growth, Vietnam’s government will certainly have its hands full juggling inflationary and exchange rate pressures over the next couple of years.
It seems that they managed to fight inflation after tightening policies in February last year. Thus, foreign investment has been on the rise in Vietnam, from Japanese retail group Aeon, to Shouth Korea’s Lotter Mart supermarket and Intel who opened a billion-dollar plant in Ho Chi Minh City.
If you want to start business in Vietnam, David Carter suggests that you “do your due diligence and market preparation carefully: Western firms are at a disadvantage in that they have to follow the letter of the law, whereas some Vietnamese firms simply don’t”.
To support economic growth, the solution will be in mass education. Currently, demand in education is outstripping supply, and David Carter added that “kick-starting 300 universities in Vietnam tomorrow wouldn’t be enough to meet demand”.
As for the accounting industry, it is important to note that Accounting and auditing practices in Vietnam have improved enormously in recent years, underpinned by the creation of professional bodies, proliferation of accounting firms and development of laws and regulations.
The full article can be accessed as a PDF by clicking on this link: Tapping a tiger – INTHEBLACK