Vietnam has rapidly become one of ASEAN’s most attractive host countries for Foreign Direct Investment (FDI), but the era of measuring success by volume of investment alone is coming to an end. The real challenge for the country is improving the quality of foreign direct investment to foster sustainable, long-term growth. The goal of attracting […]
Over the recent years, Vietnamese businesses and entrepreneurs have continuously grown and prospered, and also significantly contributing to the country’s economic development. Furthermore, Vietnam has also become an attractive destination for ASEAN investors, and any other investors like from the United States and Europe. Therefore, many investors want to establish a company, a branch, a representative office, or set up joint ventures to understand the local market. This article will provide you with Vietnamese entrepreneurs, finding local partners, as well as to choose best joint ventures partners in Vietnam!
READ MORE: Viettonkin Consulting service to help you with Join Venture effort to expand your business
Overview of Vietnamese Entrepreneurs
Vietnamese entrepreneurs somehow face numerous difficulties in a context of deep international economic integration. They have been encouraged to be proactively developing strategies to gradually become a capable and qualified force that plays a key role in economic development. It is as well as enhancing the capability for international economic integration.
The Party and State have made numerous policies and guidelines to encourage the development of enterprises as well as promote the role of entrepreneurs in the cause of national construction and defence. Today, Vietnam has over 800.000 enterprises and around 5.2 million business households with over 5 million entrepreneurs.
However, it has proved that the pavement of the way for enterprises' development was in the right direction. Many Vietnamese entrepreneurs have been listed among the top global “US$ billionaires.” Those entrepreneurs have big dreams and ambitions with aspirations of contributing to make the country more powerful, prosperous and civilised.
These rapid increases in the number and scale of enterprises across all economic sectors, the Vietnamese entrepreneurial force has continuously developed, significantly contributing to the implementation of socio-economic development strategies, creation of jobs for employees, and the settlement of social welfare issues.
Another fact to add, businesses have contributed over 60% to the country’s GDP, around 70% of state budget revenue and has attracted millions of employees. Thus, the promotion of the country’s economic development could be considered a mission and responsibility of the entrepreneurial business community.
Additionally, some companies are enjoying stable earnings brought by joint ventures they established with foreign partners, but their core businesses remain insignificant. Plus, these joint ventures are usually foreign direct investment (FDI) projects in which State-owned enterprises contribute capital and land use rights, while foreign companies contribute money and technology.
Joint ventures indeed can be a great way to make money, but in order to do this, you must know how to find the right local partners that will provide what you need. Let’s keep reading!
Finding The Local Partners for Joint Ventures
Finding local partners for joint ventures is not as difficult as you think, it is relatively easy. Nevertheless, you have to utilize tools or sharpen your skills to get more local partners for your significant business development. Thus, there are ways to find the rightest local partners for you.
1. Social Media Usage
Setting up a blog and sharing what you are doing through social media is remarkably simple. The websites like WordPress and Squarespace let you set up a website in minutes. In addition, Twitter, LinkedIn, Google+ and Facebook can help you build and find communities that may be interested in what you want to achieve. You only need to be confident to put it out there and communicate clearly about your doing, because people are watching and you never know where a potential partner will come from.
2. Communicating Your Intentions
The first step in spreading the words of your works is to be clear about your vision, strategy, and types of project that you want to do. If you desire of more additional partners, you can do this following actions:
- Asking your inner circle to recommend your idea to their friends or family members.
- Posting your idea on a discussion forum and seeing who responds.
- Posting your ideas on LinkedIn groups that have formed around your business.
3. Evaluate Your Joint Venture Partners
Developing a thorough way of screening potential partners is tough, but you must do it if you want to have the right partners. You can consider this following criterias to make the right partners:
- Different operational skills: find someone whose skills complement rather than replicate yours.
- Similar work habits: you have a shared view as to how much you will work to achieve your goals.
- Emotional buoyancy: you need the capacity to support each other during the highs and lows of the project.
- Total honesty: you and your partners must be committed to telling each other the truth all time.
Choosing The Best Joint Ventures for Your Business
Determine the ideal business partner in a joint venture is one that has resources, skills and assets that fulfill your own. The joint venture has to work contractually, but there should also be a good fit between the culture of the two organizations.
There is a good starting place to assess the suitability of existing customers and suppliers that you already have a long-term relationship with. Additionally, you can think of your competitors or any other professional associates.
There are things you need to consider when assessing the suitability of partners, and these are:
- How well do they perform?
- What is their attitude to collaborate and do they share your level of commitment?
- Do you share the same business objectives?
- Can you trust them?
- Do their brand values complement yours?
- What kind of reputation do they have?
You also must carry out some basic due diligence checks when looking at new potential partners. Firstly, examine their legal status, then make sure that they have the right to enter the joint venture. You should ask yourself these things:
- Are they financially secure?
- Do they have any credit problems?
- Do they own assets that they will be putting into the joint venture?
- Do they already have joint venture partnerships with other businesses?
- What kind of management team do they have in place?
- How are they performing in terms of production, marketing and workforce?
- What do their customers and suppliers say about their trustworthiness and reputation?
Before considering joint ventures, you probably need to pay attention to these things that are explained above. Having a knowledge of local partners, finding the local partners, then finally choosing the best joint ventures for your business are rather difficult, especially when you do not plan them out.
In conclusion, if you are still unsure about finding the local partners or what the best joint ventures that you are interested in, you can ask us for our help! Viettonkin is here to assist you and your business anytime.
