Sophie Dao, Senior Partner at GBS – Global Business Services LLC said: “Vietnam is an exciting market full of potential, but success requires preparation and local insight. At GBS, we’ve helped many foreign investors navigate these challenges, turning them into opportunities for growth and success.”

Below are the key pain points:

Language Barrier

Vietnamese is a tonal language, and proficiency in English varies widely across regions and demographics. While urban centers like Hanoi and Ho Chi Minh City have better English fluency, rural areas still pose significant language barriers. Misunderstandings in business negotiations, daily interactions, and official paperwork can create frustration and delays.

Hiring interpreters, learning basic Vietnamese phrases, and using translation apps can help bridge the communication gap.

Bureaucracy and Regulatory Complexity

Vietnam’s legal and administrative processes can be bureaucratic and time-consuming, particularly for foreign businesses and investors. Frequent regulatory updates and unclear interpretations of rules create hurdles. Delays in licensing, approvals, and compliance processes can affect business timelines and profitability. Partnering with experienced local legal consultants and advisors ensures smoother regulatory navigation.

Sophie Dao emphasizes: “Understanding Vietnam’s regulatory environment is essential for foreign investors. Partnering with local experts who understand the nuances of the system can make all the difference.”

Business Culture Differences

Vietnamese business culture places significant emphasis on relationships (guanxi), hierarchical structures, and indirect communication. Foreigners unfamiliar with these cultural nuances might struggle with negotiations, trust-building, and relationship management. Take time to build relationships, show respect for hierarchical structures, and demonstrate patience in negotiations.

Expat Celebrating Tet Holiday With Vietnamese

Infrastructure Limitations

While Vietnam has made significant strides in infrastructure development, issues like traffic congestion, limited public transport options, and inadequate logistics networks persist.

Delays in transportation, high logistics costs, and uneven infrastructure development across regions can disrupt business operations.

Plan for longer lead times in logistics and consider locations with better infrastructure support for business investments.

Intellectual Property (IP) Protection

Enforcement of intellectual property rights (IPR) remains inconsistent in Vietnam, with counterfeit goods and brand piracy still prevalent in certain industries. Foreign businesses, especially in retail, technology, and creative industries, risk having their trademarks and products copied. So, you should work with legal advisors to register IP rights locally and ensure contracts include strong IP protection clauses.

Talent Shortages and Retention Issues

While Vietnam has a young and dynamic workforce, there is often a shortage of highly skilled professionals in specialized sectors such as technology, finance, and engineering. Foreign companies might struggle to recruit and retain skilled local talent, leading to reliance on expatriates, which raises operational costs. Invest in employee training programs, offer competitive compensation packages, and focus on retention strategies.

Banking and Financial Systems

While Vietnam’s financial sector has modernized, banking procedures for foreigners can still be cumbersome, especially in opening accounts, transferring money, or accessing certain financial products.

Delays in financial transactions and difficulty in repatriating profits can create barriers for foreign businesses.

Work with international banks that have a strong presence in Vietnam and seek expert financial advice.

Cultural and Social Adaptation

Differences in social norms, customs, and lifestyle expectations can create culture shock for foreigners. Expats may experience challenges integrating into local communities, building social networks, or adjusting to workplace culture. Engage in cultural training, join expat communities, and remain open to local traditions and practices.

Unclear Taxation Policies

Vietnam’s tax system can be complex for foreigners, with frequent policy changes and varying tax rates across sectors. Non-compliance or misunderstanding of tax obligations can result in fines or legal complications. Hire qualified tax consultants familiar with Vietnam’s taxation laws and ensure transparent financial reporting.

Environmental and Pollution Concerns

Air pollution, particularly in major cities like Hanoi and Ho Chi Minh City, along with waste management issues, can affect the quality of life for foreigners. Health concerns and reduced living standards may deter long-term commitments from expatriates and investors. Choose residential areas with better environmental conditions and invest in air and water purification systems.

Turning Challenges into Opportunities

While Vietnam presents challenges for foreigners, these hurdles can be effectively managed with the right approach, local partnerships, and preparation.

Vietnam remains an attractive destination for investment and living, offering enormous opportunities for those who can adapt to its unique landscape and leverage local expertise.

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Source: Vietnam Insider

On January 7, the Ho Chi Minh City Department of Health provided updates regarding the Human Metapneumovirus (HMPV), which is currently causing outbreaks in China.

The department confirmed that HMPV is not a new virus and has been circulating in Ho Chi Minh City for some time.

According to the city’s infectious disease surveillance system, respiratory infection cases ranged from 16,000 to 18,000 per month during the first eight months of 2024, with a noted increase in the final three months of the year. While respiratory illnesses typically surge during colder weather, hospitals have not observed any unusual spikes in severe cases.

Research conducted under the PREPARE project, a collaboration between the Oxford University Clinical Research Unit (OUCRU), the Hospital for Tropical Diseases, Khanh Hoa General Hospital, Nha Trang Pasteur Institute, and the National Center for Infectious Diseases of Singapore, found that common viruses and bacteria remain the primary causes of respiratory illnesses. Among 103 pneumonia patients hospitalized from July to December 2024 at the Hospital for Tropical Diseases, HMPV accounted for 12.5% of pediatric cases, compared to rhinovirus (44.6%), respiratory syncytial virus (41.1%), and influenza A (25%).

Additionally, monitoring during a respiratory infection outbreak among children in late 2023 revealed HMPV in 15% of cases. The Department of Health reiterated that HMPV is not a new virus but one of several common agents causing respiratory infections, particularly in children.

In light of the outbreak in China, the Department of Health advises the public to remain vigilant. Surveillance has been intensified, with the City Center for Disease Control (HCDC) and relevant healthcare units closely monitoring global developments. Quarantine measures at airports and seaports are prepared to detect and prevent potential disease spread.

Domestically, Ho Chi Minh City’s health sector continues to monitor infection trends, hospitalizations for severe acute respiratory infections, respiratory pathogens, and clusters of cases in schools, factories, and communities to ensure timely interventions.

Discovered in 2001, HMPV is known to cause upper and lower respiratory tract infections, particularly in young children, the elderly, and individuals with weakened immune systems. Transmission occurs through direct contact or contact with contaminated surfaces, with cases typically rising in winter and early spring.

Common symptoms include cough, runny or stuffy nose, sore throat, and fever, with severe cases potentially leading to pneumonia. Currently, there is no vaccine or specific treatment for HMPV.

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Source: Vietnam Insider

The National Center for Hydro-Meteorological Forecasting predicts that a cold air mass will begin affecting Vietnam’s Northeast region around noon and afternoon on January 9, gradually extending to the North Central, parts of the Northwest, and Central Central regions.

By the night of January 10, the cold air will intensify, spreading further across the Northwest, Central Central, and some areas in the South Central region. Inland areas will experience northeast winds at levels 2-3, while coastal regions may see winds at levels 3-4.

In the coming days, Northern Vietnam and the North and Central Central regions will remain cold. Mountainous and midland areas in the North are expected to face bitterly cold conditions, with high mountainous regions likely to experience frost and icy conditions.

• Northern plains: 9-12°C
• Northern mountainous areas: 6-9°C
• High mountainous areas: Below 5°C
• North Central region: 10-13°C
• Quang Binh to Hue: 14-17°C

In Hanoi, temperatures will drop to 9-12°C, maintaining cold conditions in the capital.

Commuters in Hanoi. Photo: Nam Tran

Additionally, under the influence of this cold air mass, regions from Ha Tinh to Binh Dinh may experience rain, scattered showers, and thunderstorms starting from the afternoon of January 9, with localized areas likely to see heavy rainfall.

Residents in affected areas are advised to prepare for severe weather conditions and take precautions against potential health risks caused by the cold snap.

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Source: Vietnam Insider

Vietnam’s internet connectivity to global networks remains unstable as two key undersea cable systems, the Asia Pacific Gateway (APG) and the Intra Asia (IA), are still experiencing malfunctions.

According to the Vietnam News Agency, while the Asia-Africa-Europe-1 (AAE-1) submarine cable has been fully repaired, the APG and IA cables continue to face technical issues.

The APG cable is suffering from faults on two branches: S1.9, connecting Vietnam to Malaysia, and S8, linking to Thailand. Repairs on the S8 branch are scheduled between January 6 and 10, but no timeline has been provided for the S1.9 branch.

Meanwhile, the IA cable encountered a problem on December 26 on its S1 branch, which connects Vietnam to Singapore. This disruption has severed links between Vietnam and key hubs in Hong Kong and Singapore. International partners have not yet provided a repair timeline for the IA cable.

These disruptions have significantly reduced Vietnam’s international internet bandwidth, causing widespread inconvenience for businesses and individuals.

To address these recurring challenges, Vietnam’s Ministry of Information and Communications has outlined an ambitious strategy for international cable development. By 2030, the country plans to add at least 10 new undersea cables, increasing the total to 15. Additionally, under the national digital infrastructure strategy approved in October 2024, Vietnam aims to launch at least two new submarine cables by 2025 and eight more by 2030.

These initiatives are designed to strengthen Vietnam’s telecommunications infrastructure, ensure consistent connectivity, and boost international bandwidth capacity.

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The ongoing bird flu outbreak in the US, which has devastated bird populations worldwide since 2020, continues to worsen, now affecting livestock and sparking growing fears among health experts.

California Governor Gavin Newsom declared a state of emergency this week, citing the alarming spread of the H5N1 virus in cattle and the increasing need for containment efforts.

A Growing Crisis

The H5N1 avian influenza, initially detected in birds, has since expanded its reach, infecting other species, including cattle for the first time earlier this year. California’s agriculture department has confirmed 645 infected dairy herds since the virus was first identified in the state’s cattle in late August. The situation worsened when health officials in Louisiana announced the first severe human case of H5N1, involving an individual hospitalized after exposure to sick birds in their backyard.

Despite reassurances from the Centers for Disease Control and Prevention (CDC) that the overall risk to humans remains low, experts are increasingly concerned about the virus’s potential to spark a human pandemic. “The more the virus spreads and replicates, the greater the risk of mutations that could lead to human transmission,” warned Dr. Jerome Adams, former U.S. Surgeon General.

Bird Flu’s Trajectory

The H5N1 virus first reemerged in Europe in 2020, quickly becoming a global issue. It has decimated bird populations, including wild birds and domestic poultry, and has recently spread to mammals, such as sea lions, seals, and even pigs. The virus’s ability to jump species, including a case involving swine in Oregon, has heightened fears due to pigs’ capacity to harbor both human and avian flu strains.

To date, the CDC has documented 61 confirmed human cases and seven probable cases in the U.S., with most infections linked to exposure to sick livestock. However, scientists believe the actual number of human cases may be higher.

California’s Emergency Declaration

Governor Newsom’s declaration enables state and local authorities to access additional resources to address the outbreak. The move comes as the U.S. Department of Agriculture (USDA) issued a federal order requiring milk supply testing, given the virus’s presence in dairy herds across 16 states. The dairy cattle outbreak, originating in Texas, has now affected 865 herds nationwide, further straining containment efforts.

What Lies Ahead

As the virus continues its unprecedented spread among animals, experts remain vigilant about the potential for human transmission. The growing pattern of mammal-to-mammal transmission, combined with the virus’s ability to mutate, underscores the urgency of coordinated global efforts to contain H5N1.

While health authorities emphasize that the immediate public health risk to humans remains low, they caution against complacency. “This is not just an agricultural or environmental issue; it’s a public health issue with far-reaching implications,” Dr. Adams concluded.

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Source: Vietnam Insider

Cao Van Hung, a 51-year-old man, has been detained and charged with murder after confessing to setting fire to a karaoke bar in Hanoi, resulting in the death of 11 people.

The tragic incident unfolded on the night of December 18 at a karaoke venue located at 258 Pham Van Dong Street in Bac Tu Liem District. According to initial investigations, Hung was drinking alone at the establishment when he got into a conflict with a group of seven patrons. The dispute escalated, leading to a physical altercation on Pham Van Dong Street, where Hung was reportedly surrounded and beaten.

Following the fight, Hung purchased a plastic bucket and approximately seven liters of gasoline for 150,000 VND at a nearby store. Around 11 p.m., he returned to the karaoke bar and threw the gasoline inside the premises, igniting it moments later.

Hung purchased a plastic bucket and approximately seven liters of gasoline for 150,000 VND at a nearby store

The fire quickly consumed the ground floor, spreading to furniture and motorbikes parked inside. The building, described as having a narrow, enclosed layout with limited escape routes, trapped many of the patrons and staff inside. Authorities reported that 16 people were in the bar at the time, and the fire blocked the main exit.

By the time the fire was extinguished at 11:40 p.m., 11 people had lost their lives, and four others sustained injuries and are currently receiving treatment at E Hospital.

Investigators revealed that Hung has a criminal history, including two previous convictions for robbery and theft. While his registered residence is in Co Nhue 2 Ward, Bac Tu Liem District, he has been living in Dai Mach Commune, Dong Anh District.

The Hanoi Police Investigation Agency is continuing its inquiries into the case, which has shocked the local community. Authorities emphasized the seriousness of the charges, noting that Hung’s actions were premeditated and had devastating consequences.

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Source: Vietnam Insider

These updates aim to streamline regulations and enhance road safety, but they also affect driving licenses and motorbike categories.

Key Changes for Motorbike Drivers

1. A1 Driving License Adjustments

• As of 2025, an A1 driving license issued in Vietnam will only permit operation of motorbikes up to 125cc, compared to the current limit of 175cc.
• Those holding A1 licenses issued before January 1, 2025, can continue riding motorbikes up to 175cc without needing additional tests.
• Renewed A1 licenses after this date will adhere to the new 125cc limit, requiring riders of higher-capacity bikes to obtain an A2 license.

2. Motorbikes Under 50cc

Driving motorbikes under 50cc remains license-free for now. However, under Decree 151/2024/ND-CP, testing requirements for students, including expatriates, are under consideration.

3. Electric Motorbikes

Electric motorbikes with power under 11 kW require an A1 license. Models exceeding 11 kW demand an A2 license.

4. International Licenses

From January 2025, expats renting motorbikes must comply with their International Driving License classifications:

• A1: Up to 125cc motorbikes
• A2: Motorbikes of any capacity

5. License Conversions

Expats converting their home country licenses to Vietnamese licenses should note that renewals will follow the 125cc limit for A1 licenses.

FAQ Highlights

Can I drive a motorbike over 125cc with my current A1 license?

Yes, if issued before January 1, 2025. After that, renewals will limit A1 licenses to 125cc.

What about small 50cc bikes?

A license is not yet required, but upcoming regulations may mandate tests for all drivers, including expats.

I drive an electric bike—what are the new rules?

Electric bikes under 11 kW require an A1 license; those over 11 kW need an A2 license.

Do international licenses still work?

Yes, but you must adhere to your license category limits when renting or driving motorbikes in Vietnam.

Expats and locals are advised to review their driving licenses and prepare for the upcoming changes. Compliance with these updated regulations will help ensure a safer and smoother riding experience on Vietnam’s roads.

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Source: Vietnam Insider

Tech giant Google has officially announced plans to establish a local office in Vietnam, marking a significant step in its commitment to supporting the nation’s digital transformation and providing enhanced services to advertisers.

According to a statement from Google, the transition will take effect on April 1, 2025, when the contractual rights and responsibilities of advertising partners in Vietnam will shift from Google Asia Pacific to Google Vietnam Co., Ltd. The newly established company will be headquartered in Ho Chi Minh City and will assume direct management of operations in the country.

Key Changes for Advertising Partners

Starting March 1, 2025, Google Vietnam will take over as the official partner for customers using Google’s advertising products in Vietnam, replacing Google Singapore. This move also includes a significant shift in billing practices:

• Invoicing and payment activities will now be conducted within Vietnam.
• Payments for services will be processed in Vietnamese dong (VND) and will include a 10% value-added tax (VAT) in compliance with local regulations.

Opportunities in Vietnam’s Job Market

Google has already begun hiring for its Vietnam operations. The company’s career page showcases a range of job openings based in Ho Chi Minh City, signaling its efforts to build a strong local team. (For more information, visit Google Careers in Vietnam).

Strategic Importance

This move reflects Google’s recognition of Vietnam’s dynamic digital economy, one of the fastest-growing in Southeast Asia. By establishing a local presence, Google aims to support Vietnamese businesses more effectively, foster innovation, and strengthen its role in the country’s digital ecosystem.

Stay tuned as Vietnam Insider continues to follow this groundbreaking development in Vietnam’s tech landscape.

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During the 2024 Hanoi Food and Culture Festival, held from November 28 to December 1, visitors were introduced to a groundbreaking experience with “Pho So Ha Thanh,” where a smart robot assisted in cooking and serving Vietnam’s iconic pho. This intelligent robot not only participated in the cooking process but also delivered bowls of pho directly to diners, sparking curiosity and excitement among both locals and tourists eager to try a traditional dish prepared by cutting-edge technology.

Earlier in September 2024, at the HorecFex Vietnam technology and innovation forum for the hospitality sector, a $15,000 tourism robot imported from Hong Kong was showcased at the Ariyana International Convention Center in Da Nang. This robot, equipped to interact with and guide visitors, highlighted the growing role of AI in enhancing guest experiences.

In October 2024, a waiter robot debuted at Premier Pearl Hotel in Vung Tau, drawing attention for its ability to serve food, clear tables, and offer refreshments to guests in the lobby.

AI Applications Beyond Robotics

Robots are only one aspect of AI’s application in Vietnam’s tourism industry. In recent years, businesses and local authorities have increasingly embraced digital transformation and AI to stay ahead of trends and enhance service delivery.

Among the most popular AI tools is the chatbot, which interacts with customers across platforms like Messenger, Zalo, WhatsApp, and official websites. These bots provide instant support, answering frequently asked questions about flights, accommodations, services, and prices. Leveraging AI, chatbots analyze customer behavior to offer personalized recommendations for destinations, tours, and travel itineraries, while also communicating in multiple languages to cater to international visitors.

AI is also pivotal in processing and analyzing customer data. Advanced algorithms filter and identify travel preferences and habits, enabling businesses to anticipate trends and adapt strategies to meet customer needs. This technology helps optimize pricing strategies, ensuring competitive rates that attract customers while maximizing profits.

Moreover, AI supports tourism enterprises in managing distribution channels. Platforms like Traveloka and Agoda utilize AI to dynamically adjust prices, streamline inventory management, and enhance revenue strategies. Automated systems monitor global distribution networks, update prices, and refine distribution plans to maximize profitability.

A Promising Future

AI’s applications extend beyond pricing and logistics. The technology is also being used to create and optimize content, such as images, videos, and service descriptions, to attract target audiences. This capability improves marketing efforts and enhances customer engagement across various platforms.

Looking ahead, AI is expected to play an increasingly vital role in Vietnam’s tourism industry. From personalizing travel experiences and minimizing security risks to optimizing passenger distribution and crafting detailed itineraries, AI holds immense potential to transform the sector.

AI also empowers businesses to refine promotional materials, websites, and marketing content, enabling them to effectively reach diverse customer demographics both domestically and internationally.

As AI becomes more prevalent in Vietnam’s tourism sector, it opens up exciting opportunities for innovation and growth. This technological advancement promises to drive Vietnam’s tourism industry toward a more sustainable, efficient, and customer-centric future.

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Vào những ngày cuối tháng 11 vừa qua, chuỗi sự kiện phát động dự án “Đến Trường An Toàn” của Prudential đã diễn ra sôi nổi tại 6 điểm trường tiểu học thuộc hai tỉnh Gia Lai và Yên Bái, đánh dấu cho sự mở dầu của hàng loạt hoạt động kỷ niệm 5 năm triển khai dự án tại Việt Nam. 

Trong bối cảnh tỷ lệ tai nạn giao thông liên quan đến học sinh vẫn còn cao và tình trạng an toàn giao thông quanh các khu vực trường học chưa được đảm bảo, công ty TNHH Bảo hiểm Nhân thọ Prudential Việt Nam đã phối hợp với Ủy ban An toàn Giao thông Quốc gia, Bộ Giáo dục và Đào tạo, cùng Quỹ Phòng chống Thương vong Châu Á (AIP) để phát triển và triển khai dự án từ năm 2019.

Sau 5 năm triển khai, dự án “Đến Trường An Toàn” đã gặt hái được nhiều thành quả đáng tự hào với những con số ấn tượng, ghi dấu một hành trình ý nghĩa với những đóng góp quan trọng trong việc nâng cao nhận thức về an toàn giao thông (ATGT) cho học sinh tiểu học và cộng đồng.

Trong năm học 2024 – 2025, dự án “Đến Trường An Toàn” tiếp tục được triển khai với mục tiêu củng cố các kiến thức và kỹ năng liên quan đến ATGT của các em học sinh tiểu học, từ đó hình thành thói quen tốt cho trong việc chấp hành các quy định về ATGT. Dự án hướng tới mục tiêu mở rộng quy mô đến 23 trường học, mang lại lợi ích thiết thực cho hơn 15.000 học sinh và 800 giáo viên. 

Sự kiện được tổ chức tại các trường tiểu học Phan Chu Trinh, Lê Lợi và Nguyễn Trãi (tỉnh Gia Lai, từ ngày 25 đến 26 tháng 11) cũng như các trường Minh Quân, Việt Thành và Hưng Khánh (tỉnh Yên Bái, từ ngày 28 đến 29 tháng 11) đã thu hút sự tham gia của tổng cộng 3000 học sinh, giáo viên cùng phụ huynh cùng đại diện các bên liên quan.

Trong 5 năm qua, những nỗ lực không ngừng của dự án đã tạo tác động tích cực đến hơn 12.000 và 580 giáo viên tại 16 trường học thuộc 6 tỉnh thành, qua một chuỗi các hoạt động toàn diện. Không chỉ dừng lại ở việc đẩy mạnh giáo dục mà các hoạt động trong khuôn khổ dự án còn tập trung vào việc cải tạo cơ sở hạ tầng giao thông quanh trường học, giúp giảm thiểu rủi ro cho học sinh. Đặc biệt theo số liệu từ Ủy ban ATGT Quốc gia, tại Quảng Ngãi, tỷ lệ tử vong do tai nạn giao thông đã giảm 47% trong quý 1 năm 2023, minh chứng cho hiệu quả rõ rệt và sức ảnh hưởng từ những nỗ lực của dự án.

Các em học sinh tham gia các trò chơi tương tác sáng tạo theo các chủ đề liên quan đến ATGT như Ô chữ kỳ diệu, Đuổi hình bắt chữ, Hỏi nhanh – Đáp gọn, Sắc màu giao thông,v.v…

Nhân dịp kỷ niệm 25 năm phát triển tại Việt Nam, dự án “Đến Trường An Toàn” tiếp tục đóng góp vào việc thực hiện sứ mệnh của Prudential tại Việt Nam khi chung tay xây dựng một xã hội văn minh, nơi ý thức về an toàn giao thông ngày càng được nâng cao, bảo vệ tương lai cho thế hệ trẻ.

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Source: Vietnam Insider