[Event Recap] SOA Shared Doing Business in Vietnam Insights in CanCham Webinar

Introduction

The Canadian Chamber of Commerce Vietnam (CanCham) recently hosted the webinar “Can-Connect: Mid-Year Review – Vietnam’s Economy, FDI & Business Landscape.” The event provided a comprehensive update on the Vietnam economy, foreign direct investment (FDI), and business landscape in Vietnam during the first half of 2025.

Among the highlights, Source of Asia (SOA) was invited to share real-world perspectives on doing business in Vietnam. Mrs. Tra Le, Market Expansion Director at Source of Asia (SOA), presented two case studies involving North American companies, offering a practical look at opportunities, challenges, and solutions for foreign investors entering Vietnam.

Case Study 1: Decowraps – Diversifying Supply Chains

Decowraps, a US leader in packaging solutions for flowers and plants, wanted to diversify production beyond China. With SOA’s support, the company conducted a thorough market analysis, identified Vietnam as the best-fit location, and acquired an existing factory in Long An Province.

Mrs. Tra Le, Market Expansion Director of SOA, shared practical tips about diversifying supply chains. (Source: CanCham Vietnam)

Objective: Strengthen supply chains and reduce dependency on China.

Challenge: Bridging cultural gaps between US management practices and local factory operations.

SOA Process: SWOT analysis, factory audit (compliance, operational fit), and supplier network development.

Outcome: Fully operational facility with 40–50 staff, providing a reliable alternative production hub in Vietnam.

⇒ Explore more details about the Decowraps case study with SOA supply chain services.

Case Study 2: US Natural Fiber Welding Company – Lean Market Entry

A small US company specializing in natural fibers for textiles, footwear, and automotive opted for a lean entry strategy in Vietnam without establishing a legal entity.

Mrs. Tra Le highlighted how US company enters Vietnam market. (Source: CanCham Vietnam)

Objective: Expand in ASEAN while minimizing upfront investment.

Challenges: Complexities around regulatory compliance, taxation, and logistics.

SOA Solutions: Recruitment of local staff, host-company services, expatriate management, and sourcing/logistics compliance support.

Outcome: Streamlined operations with a three-person team, proving that even small firms can navigate the business landscape in Vietnam effectively with the right local partner.

⇒ Learn more about how SOA supports Natural Fiber Welding in entering the Vietnamese market.

Summary of CanCham Vietnam Webinar

CanCham Vietnam webinar provided a comprehensive mid-year review of Vietnam’s economy and investment landscape. (Source: CanCham Vietnam)

Beyond SOA’s practical cases, the CanCham Vietnam webinar provided a comprehensive mid-year review of Vietnam’s economy and investment landscape, highlighting why the country remains one of Asia’s fastest-growing markets. The discussions covered macroeconomic trends, trade performance, FDI flows, regulatory reforms, and key opportunities for Canadian and international businesses.

• Robust growth. Vietnam’s GDP expanded 12% in H1 2025 (first half of 2025), more than double the global average and the strongest start since 2010. Growth was broad-based, led by services, industry, and construction.
• Economic transformation. Services now account for 43% of GDP, officially surpassing industry and signaling a structural shift from manufacturing-led to service-driven growth.
• Trade performance. Trade turnover reached USD 430 billion, up 16% year-on-year, driven by electronics and agriculture exports.
• US tariffs & diversification. New US tariffs on surplus countries impacted Vietnam, though front-loading boosted early exports. In response, Vietnam is diversifying markets, with Canada now its top ASEAN partner via CPTPP.
• FDI surge. Inflows totaled USD 21.5 billion, 33% higher than 2024. Reinvestments by existing firms doubled, showing established players’ confidence.
• Regulatory reforms:
  • Decree 219 streamlined work permits.
  • New corporate tax incentives encourage R&D and green innovation.
  • Stricter VAT compliance and an amended Enterprise Law reinforced governance and anti–money laundering.
• Financial & capital markets. Vietnam’s stock market is on a bull run, with reforms paving the way for an upgrade from frontier to emerging market status.
• ESG & manufacturing. ESG requirements are reshaping supply chains, with large investments like Sweden’s Sierra polyester recycling hub highlighting Vietnam’s green transition.

⇒ For the full replay of “Can-Connect: Mid-Year Review – Vietnam’s Economy, FDI & Business Landscape”, you can watch it on CanCham Vietnam’s official YouTube channel.

Final Words

Vietnam continues to stand out as one of the fastest-growing economies in Asia, with strong fundamentals in trade, FDI, and infrastructure. However, as highlighted in SOA’s case studies, doing business in Vietnam requires careful planning, local insights, and a trusted partner to navigate regulatory, cultural, and operational challenges.

SOA remains committed to supporting international companies in capturing opportunities and building sustainable growth in Vietnam and across Southeast Asia. Connect us to discover how we continue to support businesses in going global.