Vietnam has been transitioning from the rigidities of a centrally planned, highly agrarian economy since the 1990s to a more industrial and market-based economy, which has raised income and quality of life substantially. Expanding gross domestic product (GDP), modern infrastructure and a dramatic increase in foreign direct investment (FDI) point to a thriving investment environment in Vietnam. In fact, it has been called Asia’s newest ‘tiger’ economy, following in the footsteps of Hong Kong, Singapore, South Korea and Taiwan.
While Vietnam offers many advantages to investors, there are still certain risks and challenges particularly when it comes to intellectual property, protecting investors and burdensome regulatory processes. Businesses entering Vietnam will want to work with a consultative partner with local expertise to develop an expansion strategy that addresses these factors and alleviates risks. This article identifies the top 5 challenges that U.S. investors should prepare for before entering Vietnam.