Export to Vietnamese market: barriers and risks

Vietnam’s market economy is a member of the Association of South East Asian Nations (ASEAN) and since 2007 it has also been a member of World Trade Organization (WTO). Currently this country experiences fast development thanks to extensive foreign direct investments which have a significant meaning for modernization and globalization of the society. For example, with some countries in Europe (primarily the post-communist ones) such as the Czech Republic, the economic relations between two countries already began in the middle of the 20th century and developed significantly in the 70th within the Soviet Council for Mutual Economic Assistance. These relations suffered after political transitions in the beginning of the 90th, however since the recent years the mutual trade has again increased as primarily Vietnam is dynamically becoming highly attractive for international businesses. With a population of more than 90 million people, this market has great potential in many industries. In the context of Vietnam’s high attractivity, this thesis will define and analyze not only the opportunities, but also the barriers and risks that refer to the export activities to this market. In other words, the aim is to contrast the export potential that Vietnam offers with the barriers and risks that a foreign company may have to manage when entering this market. Besides other things, for example respective trade agreements will be taken into consideration and the acquired knowledge will also be applied to indicate potential relevant export barriers and risks for a chosen sample Czech company from brewing industry in a form of a brief case study.