Doing business in Vietnam – foreigners tell it like it is
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16 Oct 2007 - Vietnam has attractions that some foreigners admit held them back here. Of course, it has its share of challenges but then they exist everywhere and only those who beat them achieve success.
Some foreigners who set up business in this country after a casual meeting with partners say they found a “hidden charm” and decided to drop roots.
What actually interests them? And, what are their main worries while working with Vietnamese partners?
Stefano Cartoni, general director of Merloni Termo Sanitari (MTS) Group, says: “I have been working in Vietnam for three years now. The working environment is generally good for foreign investors. I am quite satisfied with the conditions and opportunities in Vietnam.”
Italian investor Marco Iglesias, who is manager of ANAS S.p.a, says it is the culture, behavior, and dynamic style of work that brings Vietnamese their success.
“I think Vietnamese businesspeople are quite friendly, knowledge-able, and confident, especially the younger ones. They will be able to achieve their full potential if given a chance for further education.”
Another foreign entrepreneur, Christian Yu, the young boss of Ipa Nima Company which makes fashionable handbags, goes even further. She says the Vietnamese market is the most attractive she has ever seen.
She came to Vietnam for the first time in 1995 and found there was a market for cosmetics and high-quality handbags that could be tapped. She also discovered an abundant supply of raw materials and cheap labor.
She took the plunge, calling her fashion business Ipa Nima. Now, ten years, her firm has inked a series of major contracts with partners all over the world.
DONALD BERGER, CEO OF THE VINE GROUP
He considers the Vietnamese customers as his most important. One thing most foreign investors in the country agree is that one can easily find business opportunities here if they have an open manner.
Berger explains, “Vietnamese are traditionally open-minded in nature and willing to discuss and share their experiences with strangers.”
Through such conversations with locals, a foreigner can easily find out about the market without having to go to market research agencies, he says.
Ministry of Planning and Investment figures show that 1,045 foreign projects have been registered so far this year with an investment of US$8.29 billion – a 33 percent rise over the same period last year.
Clearly, Vietnam is becoming increasingly attractive to global businesses and investors.
Flip side
Berger points out a characteristic he notices among Vietnamese - they prefer not to speak upfront about conflicts or disputes among colleagues.
He thinks that may affect morale in a group.
Jay Lee, director of VinaKorea, a leading garment group based in the north, has another complaint: “Some managers focus on their ‘own’ work and pay little attention to employees.”
While it is not a good practice anywhere in the world, she says it is particularly inappropriate here because then employees adopt a cold attitude and everyone loses.
Lee also says senior Vietnamese employees don’t want to share their experience with younger people when they retire. The young ones, on the other hand, are too shy to put forth suggestions in the organization.
Talking about his local partners, Cartoni says: “Vietnamese businesspeople are active, energetic, and full of desire to make progress. But they have neither experience nor opportunities to fully use their skills. They are also imaginative but can’t use it because they lack adequate education.”
Vietnam Ariston, which is aware of this problem, focuses on training its employees, sending 25 workers abroad every year for a 12-month training course.
Cartoni adds Vietnamese businesspeople have another problem - most don’t have command over any foreign language which will enable them to communicate with their foreign partners with confidence.
Sources, Authors:
By Chau Hai Ha
Thanh Nien News