With an estimated GDP growth rate which is set to grow 6.6 percent in 2021, according to the World Bank, it is not surprising that Vietnam is considered one of the fastest-growing economies in the world.
The positive development of the country’s manufacturing sector is the main contributor to this rapid growth. One thing leads to another, this also means that there are numerous opportunities available for both international and local investors.
It’s not uncommon that foreigners are always looking for business partner to expand their businesses in Vietnam. The search for local business partners is particularly popular among foreigners as it is also an alternative for you to establish a limited liability company (LLC) in the country.
By looking for and engaging a local business partner in Vietnam, you can navigate the Vietnamese market in a shorter period of time without all the red tape.
On top of that, you are able to conduct trade activities such as direct export, import, and product distribution in Vietnam, without having to incorporate a legal entity.
Business partner or distributor search in Vietnam on your own can be extremely complicated and will eat up a big chunk of your precious time. Read on to learn more about the importance of a business partner, the process of searching for a business partner and how Cekindo can help you find the right business partner in Vietnam.
The Importance of a Business Partner
We all know that your business is your baby and most of the time you will need at least one business partner in order for your business to grow.
Not only can a local business partner help you jumpstart your entrepreneur journey right away, but he or she can also bring values that you may not get elsewhere, such as connection to other businesses, relationships with authorities, resources and working capital.
Here are just a few reasons the search for a business partner in Vietnam is all worth it:
- Navigating the Vietnamese market and overcoming business culture differences more easily
- Adding value to the business with different perspectives, know-how, and network
- Bringing capital to the business
- Avoiding red tape and overcoming language barrier
- Assisting in creating an exit strategy
- Adding additional skills and talents that your business may not have
- Supporting your business strategy and keeping you motivated with the same vision
Challenges of Searching for a Business Partner in Vietnam
Most of the time, foreign investors will encounter two major hindrances while looking for their ideal business partners in Vietnam:
- Finding potential local business partner through Internet is hardly possible. This is because many local companies do not have websites. Even if they do, there is not enough information provided on the website and they are all written in Vietnamese.
- Due to the language barrier, if you only speak English and try to call some Vietnamese companies, you will most likely be hung up or will not be able to get the information you need.
Process of Business Partner Search in Vietnam
The search for a local business partner or distributor is pretty straightforward with the assistance from Cekindo:
Stage 1: Performing Business Development Analysis
Cekindo performs a thorough and custom business development analysis based on your business sector and requirements.
Stage 2: Finding a Potential Local Partner
Cekindo gets in touch with all potential partners found through the analysis and shortlist the most suitable ones for your business.
Stage 3: Planning for Your Visit
Cekindo plans and prepares all your business visits to Vietnam, business negotiations, transportation, consultations, translators, follow-ups and reports.
Stage 4: Ensuring Communications and Signing Agreement
Cekindo makes sure the continuous communications with the chosen local partner with a business plan and a partnership agreement.
Get in touch with Cekindo today to discuss the criteria of your business partner. We strive to provide the best business solutions that are tailored to your business needs.