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Understanding the Risks and Opportunities in the Vietnamese Market

The appeal of the Vietnamese market is undeniable. However, lurking beneath its vibrant surface are unseen risks and missed opportunities that can significantly impact foreign businesses. Recently, a Japanese company, referred to as Company A, engaged in a promising partnership with a prominent local brand. Yet, their collaboration was marred by a scandal involving the local partner’s fallout with another client, which exploded across social media, resulting in severe damage to Company A’s brand reputation. This incident highlighted how even businesses unrelated to the scandal could be ensnared by associated credit risks.

Similarly, another firm, Company B, decided to invest in a renewable energy project, anticipating strong future returns. However, after the acquisition, deficiencies in legal procedures surfaced, resulting in a halt on cash flow from Electric Power Vietnam (EVN) for three years due to non-payment for electricity purchases. This created a significant disruption to their financial planning.

In another case, Company C entered into an agreement with a local partner who was purported to possess a sales channel to Japan. Unfortunately, it was later discovered that products were sourced from China, contradicting the premise of a “Japanese quality” business model.

Lastly, Company D was eager to pursue an M&A or strategic alliance with a Vietnamese state-owned enterprise but found themselves unable to navigate the complex pathways to decision-makers. They struggled to articulate why their company was the best partner, lacking a compelling narrative to engage potential allies. Without thorough company analysis, even the first step of securing an appointment proved to be a daunting task.

The common thread in these failures? Insufficient due diligence before engaging with Vietnamese companies.

What is Credit Assessment for Vietnamese Companies?

The newly launched service focuses on providing a comprehensive database of corporate information specific to Vietnamese businesses. It includes essential data such as basic company profiles, capital structure, leadership details, shareholder compositions, related entities, 3 to 5 years of financial statements, import-export records, and a deep understanding of the company’s industry positioning, legal risks, and reputation.

This service is more than just a directory of companies; it provides actionable and practical data essential for making informed decisions regarding investments, partnerships, and mergers & acquisitions (M&A).

Whether you need detailed analysis of individual companies or want to screen over 100 businesses across industries, this service can support various needs including competitor comparisons and potential target extraction.

Service Plans Available

We offer three service plans designed to cater to different needs:
1. Standard Plan: This is our most economical option, providing a wealth of essential information, including fundamental company and business data necessary for market research and corporate analysis.
2. Advanced Plan: This plan builds upon the standard package, adding critical credit-related information like trade activities and financial health metrics, which are pivotal for corporate evaluations.
3. Expert Plan: The most comprehensive option includes advanced data on major clients, business evaluations, and legal risks, offering in-depth consulting insights tailored for strategic business development in Vietnam.

Benefits of the Report

• - Utilize a detailed database covering approximately one million Vietnamese companies to visualize credit worthiness, growth potential, and risks.
• - Gain an understanding of the actual structure of supply chains and the risks associated with corporate ownership, legal issues, and reputation management.
• - Support operational decisions regarding investments, partnerships, M&A, or initial dealings with robust data analytics.
• - Expedite decision-making processes in urgent contexts, such as board meetings or investment evaluations.

Who Should Purchase the Report?

This report is designed for companies aiming to engage with Vietnamese firms for transactions, distributor agreements, or partnerships while wanting to assess the credibility and reality of their prospective partners. It's also essential for businesses considering entry into the Vietnamese market, establishing local corporations, or expanding existing operations in search of trustworthy local partners.

Company Background

ONE-VALUE Corporation focuses on maximizing the utilization of Vietnamese human resources and providing managerial consulting services. We leverage our extensive knowledge and operational experience in cross-border business development between Japan and Vietnam to deliver optimal solutions tailored to client needs. Our services encompass management consulting, market investigations, consumer research, and advisory for M&A transactions in Vietnam. Additionally, our media outlet, Vietbiz, disseminates vital information regarding the Vietnamese economy and business landscape.

To explore more regarding our reports or services, visit our websites or reach out directly via email.