Tractus in Vietnam

Tractus opened its representative office in Ho Chi Minh City, Vietnam in 2007. Vietnam was at that time ASEAN’s frontier market offering enormous opportunities for trade and foreign investment after Vietnam became a full member of the WTO. Since then Vietnam’s economy has grown substantially, entering the ranks of middle income countries in 2015.

This significant growth has been driven by foreign investment capitalizing on Vietnam’s abundant labor as a low cost export manufacturing base with costs now lower than in China. The availability of natural resources including oil and gas, agricultural commodities like coffee, rice and seafood and a growing middle class driving domestic demand, contribute to its attractiveness. As the country has evolved, so has its manufacturing sector. FDI is no longer concentrated in only low value, labor intensive manufacturing such as garments or shoes, but has expanded into higher value added products likes electronics, consumer goods, process industries and real estate and services including tourism, retail, software development and more. Sustained high levels of economic growth are expected to continue. International economic organizations and the Vietnamese government foresee sustained high rates of growth, to remain amongst the highest in Asia.

Since 2007, Tractus has been assisting companies to develop their Vietnam market entry and FDI strategies, helping them to make good decisions about how to structure their business and where to locate their investments in Vietnam’s dynamic economy. Despite significant improvements in its investment attractiveness, Vietnam is a centrally planned economy with a complex process of investment approvals and business licensing at the provincial and sometimes national level. Tractus’ multinational team in our Ho Chi Minh office assists our consulting, economic development and business Inc.ubator clients navigate these complexities to build sustainable business in Vietnam’s rapidly growing economy.

Strategy & Execution

Tractus’ Strategy & Execution practice focuses helping our clients make informed decisions about where to invest in Vietnam and how to most effectively structure their investments. This includes providing accurate intelligence for their business decisions and assisting them with their implementation needs as their team on-the-ground in Vietnam. As part of Vietnam-focused or regional engagements, typical Tractus projects include manufacturing site selection, real estate and investment incentives negotiations and project approvals, and licensing.

Companies also rely on us to undertake market research, market opportunity and business case assessments and advise them on the most appropriate market entry strategy for their business in Vietnam. These strategies may include:

  • exporting into the country through a dedicated representative or agent
  • establishing a start-up greenfield investment requiring the identification of a new site and construction of facilities
  • entering into an equity joint venture or acquiring an existing business, or
  • entering the market utilizing Tractus’ business Inc.ubator services

Tractus’ business Inc.ubator was conceived as a cost effective and low risk way for companies to evaluate the Vietnam market without the expense of formally establishing a subsidiary or business entity. Our business Inc.ubator clients utilize Tractus services such as:

  • legal entity to employ dedicated Vietnam staff
  • office space as a place to do business
  • HR, administration and accounting shared services team for back-office support, and
  • senior management and Directors for experienced oversight

to establish a presence in the market before making a formal commitment to establish a legal entity and start-up operation in Vietnam.

Regardless of the investment strategy chosen, Tractus’ Vietnam team has the expertise and experience to support our clients with their investment strategy execution. Whether this is the registration of the legal entity, recruiting key management personnel, selection of professional service vendors to managing the design, engineering and construction project management of a new or existing facilities, Tractus’ Ho Chi Minh City-based team of professionals supports consulting and business Inc.ubator clients throughout their business strategy development and execution process.

Strategy

  • Market Opportunity Assessments
  • Regulatory Analysis
  • Business Case Assessments
  • Feasibility Studies

Execution

  • Customer/Distributor Search
  • Government Licensing
  • Start-up Support
  • Site Selection

Business Inc.ubator

  • Human Resources Support
  • Recruitment
  • Office Space, Admin and Management oversite

Corporate Finance

As Vietnam’s economy develops in size and sophistication, acquisition and joint ventures are becoming an increasingly interesting alternative for companies looking to benefit from the rapid growth as they offer a quick path to the market. However, regulatory framework, that in many occasions is unclear and open to interpretation, combined with a lack of information and Vietnam business culture can pose important challenges. Tractus’ Corporate Finance service line helps international investors to identify and assess opportunities, conduct necessary due diligence, and structure the engagement. Led by Richard J. Smith, a long-time Corporate Finance professional in Southeast Asia, the Vietnam team supports Corporate Finance initiatives in-country including:

– Private Placements & Fund Raising
– Target / Partner Identification & Screening
– Corporate / Deal Structuring
– Financial Modeling, Analysis, Planning & Evaluation
– Negotiations & Documentation Support
– Operational & Financial Due Diligence
– Dispositions

As Vietnam economy develops in size and sophistication acquisition and joint ventures are becoming an increasingly interesting alternative for companies looking to benefit from Vietnam growth as they offer a quick path to the market. Regulatory framework that in many occasion is unclear an open to interpretation, lack of information and Vietnam business culture can pose important challenges. Tractus’ Corporate Finance service line helps international investors to identify and assess opportunities, conduct necessary the due diligence, structure the engagement. Led by Richard J. Smith, a long-time Corporate Finance professional in Southeast Asia, the Vietnam team supports Corporate Finance initiatives in-country.

– Private Placements & Fund Raising
– Target / Partner Identification & Screening
– Corporate / Deal Structuring
– Financial Modeling, Analysis, Planning & Evaluation
– Negotiations & Documentation Support
– Operational & Financial Due Diligence
– Dispositions

Investment Attraction

  • Investor Identification
  • Targeted Marketing
  • FDI Missions
  • Strategy Development

Trade Promotion

  • Trade Show Support
  • Customer Identification
  • Company due diligence
  • Distributor Search

Technical Assistance

  • Economic Growth Project Implementation
  • Government Advocacy
  • FDI & Trade Benchmarking
  • Market Research and Strategy Development
  • International and Regional Development Implementation

Economic Development

Since 2007 Tractus Vietnam has worked with economic development organizations (EDOs) to support their trade and investment promotion efforts. Additionally we provide technical assistance on economic growth and FDI initiatives in Vietnam and greater Asia. Tractus Vietnam supports these organizations by utilizing our private sector knowledge and leveraging our years of experience in Vietnam working with local companies and government bodies.

Tractus represents US, EU and Asian EDOs and IPAs of regions, states and provinces, and municipalities as well as industry trade associations to promote exports. We also provide sector analyses, trade show and trade mission support and representation for economic development and industry trade associations in China.

The Tractus economic development team also has significant experience undertaking technical assistance projects in Vietnam funded by multi-lateral organizations such as The World Bank, UNCTAD and others develop FDI attraction policies and strategies; benchmark the attractiveness of countries as destinations for FDI and undertake economic research and analysis.

Our Clients

What People Say About us

  • Tractus does not make visible its size very well, so we had initial concerns that the firm might be almost a one-man show and would not have resources for us. This proved to not at all be the case and we did not have time or resource constraints. The staff is very knowledgeable and professional.

    We were very satisfied with Antonio. He has just the right amount of skepticism and positive attitude to make him effective in this kind of work. Nothing in Asia can be taken at face value and he has given us confidence in the process, and thereby confidence in the results.

    Investing in a new location is one of the most strategic and costly decisions a company can make. More than the inital costs, the cost of making a wrong decision can be huge. Finding a partner that is able to help ensure that the decision for a new location is the right one is critical.

    The Tractus team brings with it both a breadth of business knowledge and a depth of experience in Asia that is compelling. They were able to quickly understand our business needs and industry and tailor their process to fit. We are very confident in the results they’ve delivered. Working with Tractus has assured us both that we now can act with confidence and that our stakeholders’ interests have been served.

    Gentherm – Site Selection
  • Overall we are extremely satisfied with the team provided and we are happy to be working again with same team.

    Highly structured and analytical process merged with professional advice – best combination to feel assured of the decisions taken.

    Gentherm – Supplier Identification

For more information about the business strategy and execution capabilities of Tractus Vietnam and how we can assist you to make informed decisions about how to invest in Vietnam contact below

Strategy & Execution

Economic Development

Antonio Sequeros

Consulting Manager

 

Corporate Finance

Richard J. Smith

Head of Corporate Finance

Download our FREE Tractus Economic Development RAMP for 2016

Contact Tractus Vietnam

164 Nguyen Van Thu
District 1
Ho Chi Minh City VIETNAM