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Trading with Vietnam, an innovative business idea by Fabiola Groshan





Trading with Vietnam, an innovative business idea by
Article Posted: 02/04/2014
Article Views: 99
Articles Written: 9460
Word Count: 538
Article Votes: 0
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Trading with Vietnam, an innovative business idea


 
Business
One of the goals of every businessman, regardless of the company he leads, is to attenuate risks as much as possible and take profitable decisions that bring good revenue. Of all the processes that a company has to perform, the production process is one of the most important, since it can actually determine a company’s existence. Until the economic crisis, most production processes of American companies took place in the United States, but when the crisis struck, many companies were left with no other viable solution than quit production. Even those enterprises that were outsourcing the production process were faced with difficulties, because many companies went bankrupt. The damage was incredible for start-up businesses that didn’t have a way of minimizing risks. The only companies that did manage to survive and even prosper were the ones that had outsourced production overseas, in frontier markets such as Vietnam. The idea of setting up business collaborations with Vietnam executives might sound very extravagant and suited for large scale enterprises, but this is just a misconception. Many businesspersons don’t want to trade with Vietnam because they imagine that labor is as expensive as in China and Japan. However, Vietnam is a frontier market whose economy is recovering after the communist period.

Vietnam exports have grown considerably in the past years, not only with the United States, but also with many other countries. As economy continues to develop, the number of exports become even larger and companies begin to understand the financial advantages of trading with Vietnam partners. With permissive labor legislation an state control, Vietnam is a country where production processes are much lower than in developed countries in the Eastern or Western world. However, investors should always make sure that they have a good relationship with partners in the Vietnam and, needless to say, they have to contact a professional consultant that can guide them through the investment process. Being different from the US in many ways, Vietnam is a profitable frontier market that needs to be understood in advance.

The first thing that needs to be considered before starting to trade with Vietnam is the region where production will take place. Vietnam has well delimited areas, the most active ones being North, Central and South. Each of these is remarkable through a certain field of activity and you should discuss these specific characteristics with your consultant. The good news is that business activity in Vietnam is quite diverse, so you can export almost any merchandise from there, including textiles, food, construction materials or toys.

Outsourcing process to the Vietnam is a wise course of action for companies in the West, especially in the present day economic context, which can be very unstable. In 2012, exports with the Vietnam reached a peak and analysts say that in the future the role played by this frontier market in international trade will become even more important. If you have a company and you need to save money on the production process, investing in Vietnam can be a good solution, especially if you work on your strategy with a professional consultant.

For more resources about trade with Vietnam or about Vietnam exports, please review this link http://www.vietnamshares.com/.

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