Vietnam has recently developed into an attractive investment location for German companies. They are drawn in by the reasonable and high-quality labor, open investment environment and growing local market. Within this post we will 1) introduce the overall investment status and 2) take a look into German manufacturing operations in Vietnam. OVERALL INVESTMENT STATUS Historical Overview The first German investments flowed into Vietnam shortly after the country opened its doors to foreigners. In 1992, Bültel (producing fashion for brands such as Camel Active) settled down in Binh Duong. In the s ..read more

Dong Nai is an economic powerhouse in Vietnam. Within the country’s 63 provinces and cities it ranks fourth in FDI attraction, third in GDP generation as well as sixth in GDP per capita. It has the most industrial zones in Vietnam and is also a magnet for German industrial manufacturing. Dong Nai lies right next to Vietnam’s main economic hub, Ho Chi Minh City, and its many options for business, living, education and entertainment. Recently, the province has also made huge headlines with the start of construction operations of the biggest airport project of the country: Long Thanh. We are pro ..read more

This South-East Asian country currently is one of the hottest destinations for international buyers looking for new partners to diversify their supply chains or to reduce costs. Its companies are deemed to be reliable. Vietnam's economic policies are stable and sound. Perfect prerequisites for successful new business relationships it seems. There are however a couple of stumbling stones on the way to open new supply routes. More on this in the following blog article. It should be noted that this text mostly refers to local Vietnamese suppliers and not as much to internationally invested compa ..read more

Vietnam’s GDP is expected to grow at a breakneck speed of 6 to 7% p.a. over the next several years. Rising GDP leads to more income leading to more consumption. Furthermore, the population is expected to grow from the current 100 million to 120 million in 2050. These factors are creating a lot of opportunities for food exporters. Traditionally, a lot of international food companies were looking into brick-and-mortar retail to distribute their products locally. For most though, sales are stalling and remain at rather small volumes. So, does this strategy still carry or is brick-and-mortar reta ..read more

Working with a new supplier, distributor or business partner may provide ample opportunity. However, there is also a risk because at the start of a relationship there is not yet that much experience in cooperation and a lack of trust. Risks may end up in delivery issues or payment defaults. Hence, vetting a business partner may expose potential challenges and support in designing applicable delivery and payment terms. Within this two-part blog we have first considered WHY it is important to vet a business partner (access here). Now, in the second part, we will explain HOW a new partner may re ..read more

Working with a new supplier, distributor or business partner may provide ample opportunity. However, there is also a risk because at the start of a relationship there is not yet that much experience in cooperation and a lack of trust. Risks may end up in delivery issues or payment defaults. Hence, vetting a business partner may expose potential challenges and support in designing applicable delivery and payment terms. Within this two-part blog we will first consider WHY it is important to vet a business partner and in the second part, we will explain HOW a company may receive some initial scr ..read more

Vietnam is on the top of relevant ITO rankings from Gartner and Kearny. While the country does not enjoy the same clout in ITO as more prolific places such as China, India or the Philippines the interest is rising. A strong local enterprise scene has formed. International investors are establishing outsourcing companies with sales offices abroad. Furthermore, MNCs are opening development centers in Vietnam. In today's blog article, we will take a look at the country's ITO scene and German ITO operations. We hope that it supports companies looking for outsourcing partners or those planning to ..read more

Recently, we stumbled across the website of Prof. Geert Hofstede (geerthofstede.com). Some of you might remember him from your student years. He developed the “Cultural Dimensions Theory”. In a way, Prof. Hofstede was the father of modern cultural studies. On aforementioned site (which is excellent and even contains an online exhibition on the life of the professor) you can actually compare all six dimensions with specific countries, e.g. Germany and Vietnam. This may be an interesting angle to introduce Vietnamese business culture in comparison with Germany. And that is what this article is ..read more

Year-round warm weather, over 20 km of white sandy beaches, surrounded by lush mountains and with three UNESCO-heritage sites in its vicinity, Da Nang is a top draw for tourists. In fact, Vietnam’s fourth largest city has been voted as the country’s most popular destination. However, Da Nang is also making a name for itself in high-tech. The city has established a hub for software development and is currently advancing into high-value manufacturing. The ongoing industrial development has been highlighted by some top-notch investments as well as new plans for infrastructure. Da Nang is thus be ..read more

Most folks in Ho Chi Minh City will know Vung Tau as a local recreational area. The beaches of this resort town are accessible within less than two hours from the southern Vietnamese metropolis. However, to most Vietnamese, Ba Ria Vung Tau is also well-known as a main hub for the country’s oil and gas industry. The province furthermore features one of the fastest-growing harbors in the world and an emerging manufacturing industry. So, there are a lot of contrasts for such a small province. Within this blog article, we would like to shed a light on Ba Ria Vung Tau illuminating facts beyond pet ..read more