Prepared by our U. With its network of offices across the United States and in more than 75 countries, the U. Corruption and administrative red tape within the government has been a vast challenge for governmental consistency and productivity and for foreign companies doing business in Vietnam.
Of note, the World Bank reported that reforms in trading across borders and enforcing contracts are making it easier to do business. While Vietnam has reduced tariffs on many Vietnam market entry in line with its WTO commitments, high tariffs on selected products remain. Lack of financial transparency and poor corporate disclosure standards add to the challenges U.
Department of Commerce utilizes its global presence and international marketing expertise to help U. Commercial Service of the U. Anti-corruption has moved up the political agenda recently and the government endeavors to pass its draft anti-corruption law in late The anti-corruption legal framework significantly improved after the adoption of the Anti-Corruption Law in and the National Strategy on Anti-Corruption to Vietnam has a comprehensive anti-corruption legal framework in comparison with other Asian countries.
As comparison, regional neighbors ranked — Philippines atThailand and Indonesia at 96, China 77, and Malaysia The evolving nature of regulatory regimes and commercial law in Vietnam, combined with overlapping jurisdiction among government ministries, often results in a lack of transparency, uniformity, and consistency in government policies and decisions on commercial projects.
Project timelines often exceed initial projections, especially when financed using official development assistance ODA. Piracy rates for software were estimated to be 74 percent ina small improvement from 92 percent ten years earlier, but signaling a steady but slow decline.
Commercial Service trade specialist in the U.
Corruption Legal system and contract sanctity Tax structure Infrastructure Also in the survey, the business factor that has created the largest drop in satisfaction in the business environment over the last five years was local protectionism.
Many firms operating in Vietnam, both foreign and domestic, found ineffective protection of intellectual property to be a significant challenge.
Investors often run into poorly developed infrastructure, high start-up costs, unexpected tax assessments, arcane land acquisition and transfer regulations and procedures, and a shortage of skilled personnel.
Some companies have successfully collaborated with Japanese firms to be eligible to bid on Japanese ODA funded projects, which represents the largest source of foreign ODA in Vietnam.KPMG has responded to the need for comprehensive, reliable and quality Market Entry support by forming the Market Entry Group – a team of professionals drawn from KPMG’s Tax, Legal & Advisory divisions in Ho Chi Minh City and Hanoi.
Vietnam is not a market for inexperienced exporters or firms that do not have a well-established export department or business development unit. U.S.
companies preparing to enter the Vietnamese market must plan strategically and be persistent and consistent with face-to-face follow-up. Vietnam: market entry decisions Vietnam Brief History 18th Century- French begin settles in Saigon Vietnamese declare independance After the first Indochina War ended, Geneva Accord declared Communist North.
Vietnam Market Entry Market Entry Process Understanding the market landscape is a key requirement for potential investors in strategic decision making.
KPMG’s Market Entry process recognises that the key to a successful project is. About entry decisions of 3 corporations in Vietnam. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads.
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