Location: In southeastern Asia, bordering China, Laos and Cambodia on the eastern edge and the Gulf of Tonkin and South China Sea on the west, Vietnam is slightly larger than New Mexico.
Language: Vietnamese, with English favored as a second language.
Total Population: 98.7 million
Capital: Hanoi
Government: Communist state
Religion: Though officially a secular or atheist state, many Vietnamese practice Buddhism, Catholicism and others.
Economy: Since renewing diplomatic relations in 1995, trade ties between the U.S. and Vietnam have grown stronger, with the U.S. now Vietnam’s largest export market and a major source of foreign direct investment. The country is part of several free trade agreements as it continues its path toward global economic integration. State-owned enterprises still make up 35 percent of GDP, but the government is slowly moving forward with a plan to partially privatize those enterprises across all sectors of the economy. The government will, however, maintain majority ownership in sectors such as energy, telecommunications and banking. Over the past 30 years, Vietnam’s average economic growth rate of 5.5 percent has been second only to China in Asia.
News note: After a 99-day streak of no new COVID-19 cases and zero reported deaths, Vietnam began seeing a spike in cases in late July. The country, despite its large popularion, still (as of press time) has fewer than 1,000 reported cases, and many travel restrictions remain in place, including a suspension of entry into the country to all foreigners, except those on diplomatic or official business.
GDP (official exchange rate): $220.4 billion
Currency: Vietnamese dong (conversion rate at press time: 1 VND equals $0.000043 USD).
Franchising in Vietnam: With a young population—half of it under the age of 30—driving the commercial environment in the country, coupled with an increase in disposable income, the consumer and services sectors are emerging opportunities for U.S. brands. Franchising has gained popularity over the last decade, with the foodservice segment accounting for more than 50 percent of franchise contracts, according to the Vietnamese Ministry of Industry and Trade. Under the legal framework established in 2016, a foreign franchisor is required to have been in business for one year prior to franchising in Vietnam. A Vietnamese franchisee must also have been in business under the foreign franchisor for one year prior to sub-franchising in Vietnam.
World Bank ease of doing business rank: 70.