Opportunity for Business Expansion and Growth in Vietnam
Significance of producing high value-added products and establishing a wider distribution network
December 19, 2024
Summary
◆As a candidate location for the China Plus One (C+1) strategy, Vietnam, compared to other emerging countries, has lower wages and smaller political and diplomatic risks. These advantages make Vietnam a strong candidate for business expansion.
◆For Japanese companies expanding their business in Vietnam, it is necessary not only to target local Japanese companies as customers but also to produce high value-added products based in Vietnam and establish a wider distribution network.
◆Risk factors include territorial disputes with China in the South China Sea, additional tariff measures by the new Trump administration, domestic political uncertainties, and uncertainties due to economic reforms. When expanding into or growing business in Vietnam, it is essential to fully understand these risks.
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