As announced by the Vietnamese government only recently, the manufacturing nation has set itself a 6.5 percent growth target in 2021.
There are a number of remarkable facts which are associated with that announcement, in addition to the fact that Vietnam is definitely going to be a profitable region in which to do business in 2021. However, taking such a big step and expanding your business internationally to another part of the globe does require more understanding of the local elements.
This includes everything from gauging political environments to estimating the availability of necessary resources nearby. In other words, any business owner looking to make such an investment should be given enough reason to justify the move.
As it happens, there are indeed a number of justifiable reasons and they should become more evident as we dig deep into the potentials of Vietnam as possible grounds for international expansion.
Digging Deeper into the Expected 6.5 Percent Economic Growth in Vietnam
As previously mentioned, the south Asian nation is expecting a 6.5 percent growth in their GDP next year, but that seemingly modest fact needs to be analyzed to some degree if we are to understand its significance amidst the current situation.
At a time when much larger and more powerful nations are struggling to come up with a plan that can help them get back to their pre-Covid status in 2021 – 22, Vietnam is expecting a growth of 6.5 percent next year. This is identical to what the expected growth rate was for Vietnam before the pandemic slowed down business globally, but to expect a similar growth rate once again by 2021 is extremely impressive.
Based on the stats that support this optimistic estimation, it would be proper to not just recognize Vietnam as a good place for international expansion, but also as one of the best places in the world right now for manufacturing-centered businesses.
Vietnam is Also One of the Safest Places to Do Business In
Quarantines around the world initially have halted the global economy, and although things have begun to look brighter in terms of a possible financial recovery, that hope comes at a heavy cost.
In view of the global financial breakdown, major governments have had to lift their respective lockdowns and allow businesses to continue once again. While such a move was inevitable to save the economy, it did come at the cost of accepting Covid-19’s semi-controlled spread as an inevitability as well.
By early October 2020, roughly 1.10 million people had passed away after contracting the disease, in what has been less than a year’s time. With the United States still topping the list with 7.7 million reported cases and more than 215,000 deaths, finding a safer place for business expansions should most definitely be a consideration in 2020 and beyond.
From that perspective, Vietnam is one of the safest nations in the world to be in right now, if not the safest. To understand the reasons behind such a conclusion, one does not have to look much beyond the basic stats.
There have so far been only 1,100 reported cases of the viral disease in Vietnam, which is in itself quite remarkable, especially since they were one of the first nations to report cases.
What is even more outstanding is the fact that out of the 1,100 odd cases that have been reported, 93 percent (1023) of people have successfully recovered. With only 35 deaths in nearly a year, Vietnam is by far one of the safest nations to expand your business in.
How the Safety Aspect Affects Business in Vietnam
Choosing to conduct business in a place where the pandemic is almost non-existent, or under complete control is a major advantage to have when most of the world is still in the grip of the pandemic, whether they accept it or not.
Speaking purely from a commercial perspective, a safer business environment right now can provide any expanding corporation with multiple advantages, which include but are not limited to:
- Uninterrupted manufacturing and supply
- Increased capacity to function, which comes naturally with any planned overseas expansion
- Reduced chances of losing productivity due to sick days
- Reduced chances of losing operative capacity since a lockdown in Vietnam is unlikely at this point
- Assuring a safe working environment for both non-residential employees and local employees is a much more feasible expectation
Considering the receptive attitude of the current Vietnamese government towards US businesses, as well as the nation’s very impressive manufacturing facilities, Vietnam truly remains an excellent option for international business expansions.
Getting Started with a Business Expansion in Vietnam
Launching a branch of your business in Vietnam is not difficult at all since there are no political or pandemic-induced limitations that can affect such a plan. That being said, you will need the help of a Vietnam recruitment agency to get started initially.
It is true that the local government is very open to the idea of playing host to new international business in 2020 – 21. It is also true that Vietnam has long had the infrastructure to become one of the biggest manufacturing nations in Asia.
However, there are still various cultural, political, and lingual differences between the United States and Vietnam, which could become impediments against a successful expansion in the country. Such problems can be easily avoided by seeking the help of a local agency.
New Horizons Global Partners is an international name, well known for aiding companies across the globe to bring their growth plans to full fruition. In Vietnam, they have a particularly experienced and reliable Vietnam recruitment agency for handling all aspects related to recruitment and post-recruitment support.
Contact them directly from their website linked above and talk to an agent on the site first. They should be able to explain exactly how it is that they can aid your own international ventures in everything from talent acquisition and recruitment to payroll management and acute employee analysis.
A Better Option than the More Obvious Alternatives?
The dominance of China as a global leader in manufacturing is absolute and no other nation, including the United States, is even close in terms of business.
However, Vietnam is still a better alternative to China right now, especially if you are planning to expand from the United States. There are two very obvious reasons which are self-evident to anyone up to date with what is going on in world politics.
First and foremost, the infection did indeed spread from Wuhan, China. While the nation’s ability to curb the infection better than any other of the superpower nations is extremely commendable, it still remains a questionable choice in terms of safety.
More importantly, the ongoing political situation between China and the US makes it nearly, if not completely impossible to expand without uncertain repercussions. There is an air of political unrest around the Southeast Asian manufacturing giant, as the country has also been involved in acts of aggression against neighboring nations such as India and Taiwan recently.
Since an expansion into Vietnam has none of these problems that the average business owner needs to be alarmed about, the much smaller nation may truly be a more cost-efficient and safer alternative to China for the time being.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.