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.
Get the latest on Canada's new free trade agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It's a trade deal with 10 countries bordering on the Pacific Ocean, including Japan, Malaysia, Peru and Mexico.
Here’s a helpful tip for doing business in Vietnam
Building strong relationships are essential to doing business in Vietnam, and the initial meeting should be solely used as a "getting to know you" opportunity.