Vietnamese delegation, led by Mr. Nguyen Hong Duong, Deputy Director General, Trade Policy Department for the Americas (2nd from right).
As the world’s 12th most populous country and the world’s 12th largest workforce of over 46 million workers, Vietnam is emerging as a significantly open economy with tremendous opportunities for economic investment and partnerships. Their gross domestic product reached $89.1 billion in 2008 and it has become an export powerhouse on the back of major economic reforms over the past 20 years.
This information and more was shared by a recent delegation to Utah from the Vietnam Ministry of Industry and Trade. The delegation was led by Mr. Nguyen Hong Duong, Deputy Director General, Trade Policy Department for the Americas, and included Mr. Pham Anh Tuan, Vice Trade Consul, Consulate General of Vietnam; Mr, Tran Duy Dong, Commercial Officer, Trade Policy Department for the Americas; Mr. Tran Tri Manh, Chairman, Vietnam Payment Solutions JSC and Mr. Frank Chen, President, Phu Khanh Investment Joint Stock Company.
During their visit to the Salt Lake Chamber and World Trade Center offices, the delegation discussed the Ministry of Trade involvement with improving a collaborative environment for companies in Vietnam and the United States, as well as the possibility of future educational events, co-sponsored by the Salt Lake Chamber, World Trade Center Utah and the Vietnam Ministry of Industry and Trade, for the Utah business community to increase their understanding of investment and trade opportunities in Vietnam.
Utah exports to Vietnam have been increasing at a high rate: from 2006 to 2007 by 50%, from 2007 to 2008 by 80%, and from 2008 to 2009 by 90% reaching $15,094,091 in December 2009. Food Manufactures comprise the bulk (79.7%) of Utah exports, followed by the Chemicals and Miscellaneous Manufactures Commodities.
Vietnam is a consumer market full of opportunity, but the following considerations are critical to consumer success, according to Richard Burrage, Managing Director of market research company Cimigo:
- Understand your market size: There are five million Vietnamese urban households, 2.7 million of which are in the urban consuming (upper-middle) class, which translates to 12.2 million people.
- Have a long-term perspective: Understand the Vietnamese, their needs and the regional differences.
- Provide appropriately sized products: They should suit not only the senses but also the pocket, eg. consider small pack sizes and cheaper pack formats.
- Consider partnering locally: While key local companies do not need money, they do need expertise, technology and experience.
Vietnam Quick Facts:
Area -128,527 sq mi
Population - 1 April 2009 census: 85,789,573
GDP (PPP) 2009 estimate
– Total $256.584 billion
– Per capita $2,942
GDP (nominal) 2009 estimate
– Total $92.439 billion
– Per capita $1,060
