Vietnam’s centre of business and commerce is Ho Chi Minh City, a city that is becoming increasingly multi-cultural year-by-year. Ho Chi Minh is a location that buzzes with excitement as the new era of foreign investment flourishes.
The rise of South Korea’s economy has partly contributed to the success of Vietnam, and Koviets – the name for second-generation Korean children born and raised in Vietnam – go to local Vietnamese schools and absorb the country’s culture. There are an estimated 130,000 Koreans living, working and investing in Vietnam. Koreans know from first-hand experience that Vietnam has bounced back from decades of war, and were quick to invest once Vietnam introduced its ‘open door’ policy in 1986. With many other policies also liberalised, ethnic diversity became a symbol of pride for Vietnam. Now, over 20 years later, Vietnam has grown to become a middle-income country, and many executives are looking at Ho Chi Minh’s continued development and thinking of it as the ‘new Seoul’.
In 2016, The Economist magazine noted how being open to investment pays off in terms of growth and trade. Foreign companies have recognised that Vietnam is a better alternative than China as a low-cost location for business, research, engineering, technology, and manufacturing. The Economists’ report also noted that trade accounted for about 150% of Vietnam’s GDP (in 2016), more than any other country at the same income level. So, when considering offshoring it’s worth noting that Vietnam is 30% to 40% cheaper than China, plus Vietnam has a technically-skilled labour force, and low wages and overheads.
Ho Chi Minh City, known as the multi-cultural centre of Vietnam
Ho Chi Minh City, known as the multi-cultural centre of Vietnam, is where the country’s French heritage sits alongside Chinese shophouses and pagodas, high rise office blocks, international restaurants, and traditional Vietnamese houses. It is a very affordable city that welcomes people from many different countries. Modern-day approaches to diversity and ethnicity differ vastly from attitudes displayed in the past. Globalisation has had a rapid and permanent effect on urban life, thanks ever improving communications and exposure to other cultures. It works the other way too; Vietnam is attracting more tourists each year as its culture is presented to all corners of the globe.
Young city-dwelling Vietnamese are global citizens – they watch the latest movies the same day they are released in the US, have a mobile phone with them at all times and are very much part of the country’s future. They have an entrepreneurial attitude, often have more than one job, and choose to do an extra study in their own time to get ahead. Employers thinking of choosing Vietnam as an offshore base are met with talented and willing staff.
Vietnam is now very well connected to Asia, the US, and Europe
\nVietnam is now very well connected to Asia, the US, and Europe, and this makes trade and business much easier than in the past. On top of numerous small fly-in-fly-out airfields, it has three international airports, and 13 domestic airports, with six more in the pipeline. In 2017 Vietnam was host to a number of APEC meetings where, among other trade initiatives, new supply chain agreements with Vietnam’s regional partners were discussed. Vietnam’s proposed and existing trade and finance initiatives support offshore staffing centres and operations. This is because improving education, and supporting rapid growth are set in the policy. This is especially true in go-ahead, multi-cultural Ho Chi Minh City
Foreign companies have recognised that Vietnam is a better alternative than China as a low-cost location for business, research, engineering, technology, and manufacturing.
