by Vietnam Economic Times
Much progress made VET sought the opinions of foreign business leaders regarding the country’s relations with the US.
Mr. Sean T Ngo, CEO, VF Franchise Consulting – “Vietnam and the US have had a fairly long relationship and one that has had its positives and negatives. I am hopeful that the visit by President Obama will send another strong message that America is a friend and that the bilateral relationship continues to get stronger. This hopefully will encourage US business to invest further in Vietnam’s economy and its workforce.
We have been ding franchise consulting for over 30 years, though not always based in Vietnam as we have offices in Singapore and the US. Over the last ten years we have seen Vietnam’s GDP per capital grow from 7% to 7.5% on average. This has resulted in Vietnam being consistently recognized as one of the best countries for foreign retailers to enter into. With the TPP and the EU-Vietnam Free Trade Agreements nearly ratified we expect Vietnam’s business environment to be better than at anytime in the past 30 years.
Vietnam is a country of 92 million people and growing at a healthy 1% annually. This along with rapidly rising incomes makes it a key market for many retailers and franchisors, as they see strong spending potential in the medium and long terms. With higher incomes there will be expectations for higher quality products and services. Franchising includes more than just food &beverages and many franchises are in the services and education and training industries. The International Franchise Association of America recently ranked countries that provide the best opportunities for global expansion, and Vietnam was ranked in top10!
Vietnam is a member of the TOP and ASEAN and international companies are rushing into the country to leverage the combination of its competitive production costs and lowered trade barriers. This in conjunction with predictable government treatment and tax incentives help to ensure that FDI will continually flow into Vietnam for the foreseeable future.
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