Vietnam’s story is one of growth, embarking on a state-controlled free-market reformation that brings opportunities for several Canadian sectors.
Evaluating the market in Vietnam
We can help you get a better understanding of market activity, relationships and support to grow your business.
What this means:
Actively pursuing business
All EDC solutions are available in this market, subject to regular approval criteria
How does EDC determine the position?
EDC takes the following into account when determining the position in a given market:
Government of Canada restrictions
Political, human rights and corruption risks
Other factors that may be taken into consideration are: size of the economy, diversification of the economy, risk of natural disasters
Medium to High Risk
What this means:
The Commercial Country Ceiling (CCC) Risk Rating is measured from low to high, and is meant to represent the best possible rating that can be assigned to a commercial business (obligor) in a country.
How does EDC determine the risk rating?
The CCC risk rating is impacted by the Sovereign Probability of Default (ability and willingness to honour financial obligations), political risks, and other mitigating or worsening factors.
Business environment in Vietnam
Exports and FDI inflows have helped Vietnam exceed growth expectations in recent years; and growth is expected to remain in the six per cent range in 2018. With privatization of state-owned enterprises (SOEs) gaining traction, the investment climate may experience another boost. Although macroeconomic factors and Vietnam’s dependence on SOEs can pose challenges for potential foreign investors, the Vietnamese economy provides ample opportunities for Canadian companies in several sectors due to favorable demographics and a growing middle class. Prior to entering the market, companies should be prepared to invest the necessary time and resources needed to develop strong, on-the-ground relationships. It is advised that Canadian exporters appoint a local representative to act as an importer/distributor for direct exports.