World economic integration, especially Trans-Pacific Partnership Agreement (TPP) will open vast opportunities for trade, invest for the Vietnamese enterprises and the development of country's economy under the orientation of expanding the market, especially to American market. The outsourcing business opportunities are important but they should be combined with the discovery and development of potential from inside enterprises to really help the enterprises integrate in the world economy successfully.
Discover why America is the leading appeal market
The United States is the largest consumer market all over the world with 322 million people and 18 trillion dollars (GDP). The expenditure level of household is the highest in the world, accounting for over a quarter of the expenditure of household across the world. According to the latest statistics, the reality of annual average income of a household has exceeded 50,000 US dollars and over half of Americans (56%) are considered "high income" according to the global standards of the World Bank. Moreover, the market of US & Latin American countries (including 33 countries and population of 600 million people) is becoming more attractive as committed in the TPP with nearly 100% of tariff lines that will be reduced to 0% or gradually be rejected.
Important milestones in Vietnam - US relationship
The United States is now the leading and attractive export market to Vietnamese Enterprises. The total turnover of the bilateral exchange of goods between Vietnam – US reached USD 36.3 billion in 2015 in which Vietnam exported goods to the US market equivalent to USD 30.6 billion (only accounting for 1.3% of total import turnover of US goods). The TPP will help Vietnam to diversify export markets as the emerging supply source for the US, helping to expand the scale, the supply of raw materials and join further in the regional & global value chain. The Community of 1.5 million Vietnamese in the US is considered the initial export market and the bridge for Vietnamese goods to penetrate the US. This opens up great opportunities, not only for exports of traditional commodities of Vietnam such as textiles, footwear, coffee, rice, cashew nuts, furniture, electronic goods, but also the attractive markets with many different items such as tropical fruit, processed food, organic agricultural products, handicrafts, software processing services, design, export processing including export by means of goods retail through the Internet like Amazon...
This attractive and open market creates the easy business environment, creates the strong growth motivation for all large and small enterprises, not only in the area of trade but also in the investment. Indeed, the US is consistently ranked the best in the world about overall competition and favorable conditions in business. Foreign companies can establish various types of companies as branches or subsidiaries, including the acquisition of US companies to enter the market easier. This is seen as a new modality for the Vietnamese enterprises to export and develop business sustainably through investment in order to own the distribution system and brand, the strategy commonly applied by the international enterprises when entering Vietnamese market. This enterprise investment model allows the governing body or management to be issued the long-term visa (L1) in order to create favorable conditions for the companies to develop successfully in the US. Expansion of cooperation with the US under this modality can help the enterprises approach & innovate technology, technique, advanced management level especially in the high-tech agricultural sectors to improve the competence in the global competitiveness.
The United States is the leading and attractive export market to Vietnamese enterprises
America is also the potential market with many opportunities for real estate investors. According to Bloomberg’s statistic, since the financial crisis of 2008, the US economy has flourished since 2009 and grown strongly until now, accompanied by the strong growth of US real estate investment with a growth rate of about 4-5% in 2015 and the average increase level of price in the whole United States of about 5% in 2015 (Corel Logic, Zillow, Barclays).
Great opportunity but potential development is more important
Differences in business culture, laws, technical barriers & high quality standards can be the big challenge for Vietnamese enterprises when they desire to trade or invest in the US. In fact, many Vietnamese enterprises often export in a “random” manner with a small scale through the relationship with relatives, friends or better at Asian supermarkets but rarely penetrate successfully in the big supermarkets in the US. In general, their ability to penetrate the US market is still restricted due to limited resources but the more important thing is the ability of exploiting and developing the enterprises’ internal potentiality in exporting. In the other words, the business opportunities from outside are large but the more important thing is the way the enterprises research market to help identify clear opportunities & barriers in each sector or specific product, where niche and priority markets matching the own advantages are, evaluate export readiness, how to evaluate & select appropriate distribution or import partners, select strategy of market penetration such as through distributors, agents, concession, joint venture, mergers and acquisitions M & A...
In order to penetrate the US market successfully, Vietnamese enterprises must be active and committed the clear export strategy, establish the specialized export department, allocate the resources appropriate to the goals and carry out the trade promotion activities (XTTM) in the US. Export marketing requires having strategic investment, specialized resources to ensure sustainable success in the long term.
Potential exploitation by seeking support from specialized units
Besides trade promotion network of the state system, currently, the role of the private trade promotion units is growing with significant contribution to business performance for the export enterprise community. If Vietnamese enterprises have not yet had available department and resources specialized in export, the enterprises can seek external support from specialized units. As a leading expert on investment promotion with the US for more than 7 years, USIS Group (www.usis.us) has expanded into the area of DN L1 investment, real estate business, trade promotion through the member company of USIS Consulting (www.usis-consulting.us) to complete the vision & perform mission of a organization connecting, accompanying & supporting international integration for the individuals & enterprises in the country and a bridge promoting and boosting the Vietnam - US in the areas of education - trade & investment. USIS Consulting is positioned as a reliable resource for "connecting one-stop business development" through the trade and investment promotion between the United States and Vietnam for the individuals & enterprises.
Opening ceremony of office of USIS Consulting in Southern California, USA
With consultant staff is leading and experienced in international business, the partner staff of international business is high-rank and prestigious global, the system of 5 service offices spreads across the big provinces, cities in Vietnam and in the US, USIS provides the measuring and sewing services that are suitable with the needs and practical experiences of each enterprise according to different stages: from providing information & basic guidelines for initial preparing step; to selecting and capturing information to invest or penetrate market; or when the enterprises need the active support to develop their business or investment in the US market. Firstly, Vietnamese enterprises wish to provide the shared office service (business center), commercial representatives, L1 corporate investment in the US can contact with USIS immediately to receive special deals during the opening time of USIS in the US.
The launch of USIS Consulting will be combined in the event dated November 16th and November 18th, 2016 with the project “Building wireless network infrastructure throughout New York City - Opportunity to invest in the project of the US government and Google” (LinkNYC).