Dung Hoang Nguyen

Managing Partner at Kreston VN

Dung Hoang Nguyen has over 22 years of experience in advisory, audit, appraisal, and M&A. He trained with Deloitte and KPMG before joining Kreston (VN) in 2008, becoming a partner in 2010. Dung is passionate about business growth and understands business life cycles from creation to exit. He advises numerous large national and international clients, leveraging his extensive experience. Dung has been a member of the Vietnam Association of Certified Public Accountants since 2007, the Chartered Institute of Management Accountants since 2015, and the Hanoi Bar Association since 2016.

Vietnam’s path to growth

August 2, 2024

Vietnam’s business environment is becoming increasingly open and supportive. Since 2014, the government has focused on improving the business climate through consistent reforms.

Challenges

However, doing business in Vietnam comes with challenges. “Corruption and bureaucracy remain significant hurdles,” says Dung Nguyen Hoang, Partner at Kreston VN. Legal uncertainties and weak enforcement of Intellectual Property Rights (IPR) also pose difficulties. Additionally, businesses face issues with inadequate infrastructure, skill shortages, and language barriers, often needing interpreters and translators.

Vietnamese exporters face specific challenges in accessing international markets. Dung highlights several issues: “Market development, intellectual property protection, financial constraints, competitive pricing, and language and cultural differences are major concerns.” Other challenges include compliance with market access regulations, logistics, quality standards, and trade barriers.

Growth access

Access to growth finance is another obstacle for Vietnam’s companies. “The banking loan market is the primary source of credit, but over 50% of businesses struggle to secure funding,” says Dung. Many companies do not meet the credit requirements of commercial banks and lack long-term credit relationships.

Sustaining growth

Despite these challenges, the Vietnamese government’s ongoing reforms are creating a more favourable business environment. Addressing the existing issues will be key to ensuring sustained economic growth and greater international integration.

If you would like to speak to an expert in Vietnam, please get in touch.