Over the past two decades, Vietnam has become one of the most successful countries in the world in sustaining rapid economic growth. As such, it has emerged as an excellent option for U.S. companies wishing to enter the Asian market in a place with largely unlocked potential. In Asia, Vietnam's economic growth ─ which measured 8.5 percent in 2007 ─ is second only to China.
The country, which is slightly larger than the state of New Mexico, has a population of about 86 million people that is over 90 percent literate and includes diverse religious populations. It boasts a stable government that has been deeply interested in economic reform over the past several years. As a result, Vietnam's economy experienced average annual growth of 6.8 percent from 1997 to 2004, and the capital city of Hanoi is targeting economic growth of 7.5 to 8 percent annually during the next four years. Vietnam joined the World Trade Organization in January 2007, which has provided the country with an anchor to the global market.
Bingham Greenebaum Doll LLP has been actively involved in helping U.S. companies enter this vibrant market through its affiliations with high-level dignitaries, including former ambassadors and business leaders.
Examples of our current efforts include:
- An international manufacturer that specializes in mechanical and electronic components is considering building plants in Vietnam because it wants to diversify within the Asian market and wants to reduce its cost of manufacturing. Currently, Vietnam's labor costs are about 20 percent of China's, and China's labor costs are roughly 20 percent of the United States'. This manufacturer intends to form a joint venture with Vietnamese private investors, who wish to establish a long-term business relationship. Bingham Greenebaum Doll LLP has successfully negotiated a substantial tax benefit for this proposed transaction.
- A luxury furniture producer wishes to move its manufacturing business in China to Vietnam in order to realize substantial tax benefits and labor cost savings. Bingham Greenebaum Doll LLP is assisting the company, which already has a contract with a Vietnamese manufacturing firm, in finalizing details regarding logistics, distribution, licensing and other elements.
- A major producer of alcoholic beverages wants to partner with a Vietnamese distributor to begin selling its products in that country. The company recognizes that Vietnam is a growing market for tourists and other visitors who will want familiar drinks during their stay. Bingham Greenebaum Doll LLP is helping the company identify and surpass the myriad governmental, social and economic barriers associated with this unique venture in order to help the company seize the opportunity offered in this largely untapped market.
- A Vietnamese entity needed to procure new equipment to replace its outdated systems. Bingham Greenebaum Doll LLP introduced the company to a U.S. security consulting firm that not only helped locate the equipment, but also assisted in its implementation and provided strategic assessments, helping the Vietnamese company better maximize its investment