With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
Issue link: http://digital.canadawide.com/i/394777
NOVEMBER 2014 BCBusiness 27 IStOCK a s i a Doing Business in Vietnam One of Asia's remaining communist countries is putting on an increasingly friendly business face by Alix Drabek W ith 90 million people, a 95 per cent literacy rate and 60 per cent of the population under the age of 35, Viet- nam holds tremendous potential for any com- pany looking to expand its markets. And while Vietnam's trade with B.C. is small—with exports to- talling almost $76 million last year, accounting for 19 per cent of Canada's overall trade with the nation—it is growing. The challenge: economic reforms notwithstand- ing, the Socialist Republic of Vietnam remains a fi rmly communist state that bans private land ownership, with foreign investors allowed only to purchase "land use rights" that permit leases for up to 50 years. All Roads Lead to Saigon Hanoi is the governmen- tal centre for Vietnam, but more than half of all business is conducted within 80 kilometres of Ho Chi Minh City (formerly Saigon), ac- cording to Bill Johnston, former Canadian consul general in HCMC. With high rents in the city, he recommends companies consider setting up shop in Binh Duong—located right outside HCMC, and one of the most business- friendly of Vietnam's 58 provinces. Binh Duong operates a "business wel- come" offi ce, which has consolidated the licences and permitting process while investing heavily in industrial development and infrastructure. B.C.- based Dan-D-Foods Ltd., a food manufacturer and distributor, operates both a factory and processing plant in Binh Duong. Ask Local Experts In a country like Vietnam, which John- ston describes as "an interesting amalgam of Confucian tradition with an overlay of commu- nist government," you need knowledge of the power structure. Contact Canada's Trade Com- missioner Service for expert assistance from commercial offi cers. The Canadian Chamber of Commerce in Vietnam can connect you with both Canadian and Viet- namese companies. Take the Long View Vietnam is "not for people who need to hit their targets in the next quarter," says John- ston. Colin McDonald, executive director of the Canadian Chamber of Commerce in HCMC, says that while infrastructure is a work in progress, things like cell service are getting better. "A number of companies are doing great business here," he says. "Opportunities are increasing." canadian eXports to vietnaM: top 5 provinces BUILDING UP Most business is conducted in ho Chi Minh City (formerly Saigon). SASKATCHEWAN 101.3 (24%) BRITISH COLUMBIA 79.1 (19%) ONTARIO 71.3 (19%) ALBERTA 57.1 (14%) NEWFOUNDLAND & LABRADOR 39.5 (10%) Value in CaD$ millions (share of total Canadian exports) SOURCE: BC Stats