Vietnam

While global integration has advanced well with Vietnam embedding itself in global value chains, the benefits are constrained by several challenges:

• the absence of linkages with domestic firms
• Although several large multinational corporations have chosen Vietnam as a location for offshore software development, the industry segment still lags in home-grown products and technological innovation
• Vietnam is still primarily an offshore engineering site, a software factory where work can be done efficiently and cost effectively, but the Vietnamese workforce is said to be risk-averse and do not have the access to the needed financial capital or the entrepreneurial talent to develop new products and bring it to the market
• The education system in Vietnam does not encourage engineers to be innovative and think creatively outside of the box, but instead focuses on preparing students to work for software services companies where work is divvied out to them by clients
• The focus of most software companies in Vietnam has been on lucrative, but yet low-risk opportunities such as software development and business process outsourcing services
• In technology, Vietnam has a lot of catching up with the rest of the globe, while innovation will take a lot longer to take root and flourish. While Vietnam companies have done well in the software services market, innovation has yet to see growth
• The trends in the marketplace show that the large multinational corporations are choosing Asia as a prime location for their outsourcing and Vietnam faces stiff competition from Indonesia, the Philippines and Thailand. The biggest deficit Vietnamese workers have competing with the aforementioned countries is the poor foreign language skills in both English and Japanese
• Some of the work currently being done by local companies at some of the Vietnam subsidiaries of multinational technology corporations involves innovation. Vietnam subsidiaries of some multinational technology corporations and local companies alike must start taking greater responsibility for product development and engineering in order for the industry to take root and thrive.
• Another shortcoming for the Vietnam software development segment is that the Vietnam government does not have adequate programs to support home-spun innovation.
• Local companies need to master the art of salesmanship and develop good relations with a wide network of business and social contacts.

Vietnam offers many advantages for international IT buyers. These advantages include:

• A Large and Growing Talent Pool. The IT workforce is growing rapidly with more than 100,00 software developers and 75,000 digital content specialist already in the IT workforce. There are 40,000 new graduates from IT-related programmes each year
• Established and Experienced Service Providers. This includes large, full-service companies that can provide the scale on major projects, and also includes a growing number of notable boutiques that offer specialized expertise and services in niches like mobile applications, games development and embedded software. This range of capabilities has attracted many of the world’s largest multinationals, including big names like HP, Alcatel-Lucent, Cisco, NTT, Toshiba, Panasonic, Sony and many others. It has also attracted SMEs and start-ups seeking value as they build and maintain their products.
• Political Stability and Government Support. Vietnam’s government is strongly committed to growing its tech industry. Policies to promote the industry include special enterprise zones, tax breaks and grants for tech companies, infrastructure investments like new software parks and improved ICT connectivity

• Strategic Geographic Location. Vietnam sits just a few time zones behind Japan, Korea, Australia and other leading economies in the Asia-Pacific region. It is just a few time zones ahead of Germany, the United Kingdom, France and other leading European countries. Daytime, synchronous communication is easy, and development centers are just a short flight away. Although far from North America, Vietnam is also a major supplier of IT services to companies in Canada and the United States. The time difference is rarely an issue, and sometimes even an advantage in situations when development, maintenance and testing work is best done at night

• Strong Investment in Tech Talent. Vietnam’s tech companies are working to develop the talent pipeline and are actively partnering with universities, high schools and NGOs and foreign governments to build new and modern educational programs and facilities

One notable program is the Higher Education Engineering Alliance Partnership (HEEAP), a $40 million program to improve tech education at Vietnam’s universities. Founded by Intel, the United States Agency for International Development and Arizona State University, they’ve already provided advanced training to thousands of Vietnamese professors

Another program is Vietnam-German University (VGU), a technical school that recently received a $180 million loan from the World Bank to build a new campus for 12,000 students. With a large and growing computer science program, VGU aims to become a leading research university in Asia

• Top Rankings in Global Outsourcing Studies. Numerous studies by independent research and consulting firms rank Vietnam as one of the world’s most competitive and promising outsourcing destinations. In 2011, AT Kearney’s Global Services Location Index rated Vietnam as having the #1 most financially attractive workforce in the world. In 2014, Vietnam was listed as one of Gartner’s Top 30 Offshore Services Locations. And in 2015, both Ho Chi Minh City and Hanoi ranked as Top 20 cities in the Tholons Top 100 Outsourcing Destinations study

• Low Attrition and Exceptional Value for Talent. Due to the size of Vietnam’s talent pool, and the low costs of living and doing business in Vietnam, the country’s IT workers offer some of the best value for talent in the entire world. And because supply of IT workers consistently outstrips demand, wages are unlikely to rise in the near future.

Another advantage of Vietnam’s tech workers is strong loyalty to employers. Low attrition keeps HR and training costs down. It also ensures dependability and integrity among tech teams, which is particularly valuable for companies seeking long-term development and maintenance contracts.

• A Growing Global Tech Hub with Rising Domestic Demand. Beyond IT outsourcing, Vietnam is gradually emerging as a global hub for tech products and services of all types. Major electronics manufacturers like Intel, Samsung and LG are investing billions in new factories, while multinational product companies like Atlassianare are choosing Vietnam as a location for offshore development centers.

With a young population, strong economic growth and rapidly improving infrastructure, domestic demand for tech products and services is also growing. Many companies doing more than just producing products in Vietnam—they see Vietnam as a high-potential expansion market as well.

Vietnam has a very complicated weather but the months of September to December and March to April would be the most favourable months to visit.

Southern Vietnam: the dry season lasts from December to late April or May, and the rains from May through to November. Most rains fall in brief afternoon downpours and may cause flooding in the Mekong Delta. Daytime temperatures in the region rarely drop below 20°C, occasionally hitting 40°C during the hottest months  of March to May. The monsoon rains of May to October can make transport more complicated, sometimes washing out roads and cutting off remote villages.

Central coast : the rainfall pattern reverses under the influence of the northeast monsoon. Around Nha Trang the wet season starts in November and continues through December. Further north, around Hué and Da Nang, the rains last a bit longer, from September to February. Temperatures reach their maximum (often in the upper 30s) from June to August. The northern stretches of this coastal region experience a more extreme climate, with a shorter rainy season peaking in September and October and a hot dry summer. The coast of central Vietnam is the zone most likely to be hit by typhoons, bringing torrential rain and hurricane-force winds. Though difficult to predict, the typhoon season lasts from August to November.

Northern Vietnam: generally warm and sunny from October to December, after which cold winter weather sets in, accompanied by fine persistent mists which can last for several days. Temperatures begin to rise again in March, building to summer maximums that occasionally reach 40°C between May and August, though average temperatures in Hanoi hover around a more reasonable 30°C. Summer is also the rainy season, when heavy downpours render the low-lying delta area almost unbearably hot and sticky, and flooding is a regular hazard. Temperatures in the northern mountains is basically the same though temperatures are considerably cooler and higher regions see ground frosts, or even a rare snowfall, during the winter in the months of December and February.

Normal business hours: 7am to 8:30am – 4pm to 6pm  Monday to Friday and noon of Saturday. Off day is Sunday

Lunch is taken seriously and virtually. Everything shuts down between noon and 1:30pm.  Government workers tend to take longer breaks from 11:30am-2pm.

Working hours for Establishments:

Temples and Pagodas:5am-9pm everyday

Post Office: 6:30am-9pm

Banks: 8am-4pm Monday to Friday and Saturday morning

Museums: open Tuesday – Sunday but close Monday

Markets: 7am-5pm except the Night Market (Hang Dong Street market – Dong Xuan market – walking streets 8pm-3am Friday-Sunday)

Supermarket (minimart): 8am-9pm

Private shops, restaurants and street stalls: Monday-Sunday often until late night

Indochina Time Zone  UTC +7:00

Vietnam Business Visa, categorized as DN, LV, DT, is granted to those entering Vietnam for business purpose. The visa can be valid for up to 1 year with single or multiple entry. Except for businessmen from Visa Waiver Countries, all foreigners must apply for a business visa to do business or explore business opportunities in Vietnam.

Two options to obtain the business visa:

(1) Personal application at embassy
(2) Apply online to receive visa on arrival

Online application is preferable  as it’s more convenience, cheaper and faster. For business visa applied at embassies/consulate, applicants are  required a letter of entry clearance from the Ministry of Public Security obtained by your business partner in Vietnam.

1. Apply  business visa at embassy/consulate

Requirements of business visa vary from embassy to embassy

•  Original passport: valid for at least 6 months according to requirements of airlines. If there is no blank page on the passport, a loose-leaf visa will be issued.
  • Application form: the form is available for download at official website of embassies. You can also get it directly at their office. The form must be completed, signed and attached with 1 passport photo.
  •  Letter of entry clearance: the business partner in Vietnam will help obtain this letter. You just need to provide them with your passport details, type of visa, proposed date of entry and name of the Vietnamese embassy/consulate you wish to collect the visa from. The letter will be issued after 5 business days.
  •  Visa fee: fees vary from embassy to embassy and is dependent on length of stay and number of entry.

Typical processing time is 5 business days.

Express service is available for 1 month business visa.

2. Apply online

For short-term business visa valid for 1 month and 3 months

The online application of short-term Vietnam business visa is similar to tourist visa. Applicants can online apply by sending passport copy to agency (if applying thru an agency). In the email,  include  intended date of arrival and type of visa applying for (1 month or 3 months). Visa Approval Letter is released within less than 48 business hours. This letter states that you are allowed to enter Vietnam for business purpose during visa validity and that you are able to collect real Visa on Arrival at any of Vietnam’s international airports (Hanoi, Da Nang, Ho Chi Minh).

At the immigration counter of arrival airport, kindly submit  original passport, visa approval, entry-exit form attached and 1 passport photo and pay stamping fee ($25 for single visas and $50 multiple visa). Within 10 or 15 minutes, the stamped passport will be returned to you.

Important:

•  The stamping fee must be paid BY CASH in USD or VND currency.Credit payment is not accepted.  There are no ATMs at the airport
•  Chinese citizens using visa approval must fly to Vietnam from outside mainland China because the Chinese airlines does not allow them to board plane with Vietnam visa approval.

Application Fees

Application fee is paid for issuance of visa approval letter. Fees vary according to type of visa and nationality of applicants. 

Below is the pricing table applicable for Indian, South African and Chinese citizens:

For other citizens

Tips:Vietnam tourist visa is valid for both holiday and business travel because the Vietnamese Immigration Officer at port of entry does not ask about purpose of  trip.

For long-term business visa valid for 6 months or 1 year

Not many agencies provide long-term Vietnam business visa service Please be aware that 6 months and 1 year business visa is not applicable for citizens of India, Haiti, China, Egypt, South Africa, Africa, Middle East and Turkey.

Requirements:

•  Passport copy: copy of the page containing personal data only
•  Proposed date of arrival: your visa starts validity from this date.
  •  Name of embassy/consulate at which you want to collect visa stamp (If you want to get visa on arrival at airport. This information is not required)
  •  Payment of Vietnam visa fee

Processing time: 5-7 business days excluding weekends and national holidays. Once  visa is approval, bring it with original passport and 1 passport photo to the appointed embassy/consulate to receive visa stamp. Payment of $95 for as stamping fee for 6 months multiple business visa and  $135 for 1 year multiple business visa. Additional fee of  $135 to get visa stamp at embassy’s office.

Currency: Vietnamese Dong

Code: VND

Symbol:

Exchange Rate: US$1 = 22,411.47 VND

The U S dollar, preferably crisp clean bills, is widely accepted among major shops and restaurants, but when paying in US$, it will be converted into Dong at the vendor’s chosen exchange rate, which may or may not be close to the official exchange rate, and will be rounded up to the nearest USD, making it more expensive than the cost in Dong.

The Dong is non-convertible.

The largest denomination is 500,000 dong (approx. US$ 24)

Under Vietnamese law, ATM may only dispense cash in Vietnamese Dong. Amounts that can be withdrawn at any one time is usually 2,000,000 Dong, with an additional usage charge of from 30.000 dong and above.

The official national language of Vietnam is Vietnamese (Tiếng Việt) which is spoken by the majority of the population. Vietnam’s minority groups speak a variety of languages, including Tay, Muong, Cham, Khmer, Chinese, Nung and Hmong. The Montagnard people of the Central Highlands also speak a number of distinct languages. Numerous sign languages have developed in the cities.

The second language is the French language, a legacy of colonial rule, spoken by many educated Vietnamese, especially among the older generation and those educated in the former South Vietnam, where it was a principal language in administration, education and commerce. Vietnam remains a full member of the Francophonie, and education has revived some interest in the language. Russian, German, Czech and Polish  are spoken among some Vietnamese whose families had ties with the Soviet bloc during the Cold War.  In recent years, as Vietnam’s contacts with Western nations have increased, English has become more popular as a second language. The study of English is now obligatory in most schools, either alongside or in many cases, replacing French. Japanese and Korean have also grown in popularity.