PLATINCOIN is already in Vietnam! This is an important news for the entire PLC community. The territory of PLC is growing. That means there are more and more countries where we can work together on our common and important tasks: to help everyone achieve success and prosperity and contribute to the fighting of the digital gap.
What is waiting for our partners in Vietnam? Why this market is attractive? And what shall you know if you want to work in this country? We are here to tell you now.
Fast growth of economy
Vietnam which was fast feudal till recent time is changing rapidly during the last time. Here is the brutto national product changing during the last 20 years. Compare the numbers: in 2000 it was $160,9 billions, in 2014 it was 488,9 billions and in 2016 it was 561 billion dollars.
Another highly indicative figure is GDP (gross domestic product). In 2000 produced good and services were measured for 33,64 billion dollars. In 2016 the GDP of Vietnam was measured for 202,6 billion dollars.
The economic growth creates a favourable business environment, openness for new ideas and business models. As the result there is a big number of people ready to build their future right now and who only need opportunities. Partnership with PLATINCOIN and perspectives of the innovative platform fully meet these needs.
The active engagement of foreign investors is another reason for the rapid economic growth in Vietnam. During last years the government has simplified the legislation for the foreign entrepreneurs. According to the World Bank Vietnam has moved from the 82th to the 91st place in the ease of doing business index and these are 11 points Vietnam has made.
The government interest in the simplifying administrative procedures for investors is useful in itself. And we are especially happy it coincides the values of the Platin Genesis DMCC company and its goal to create a global community where people will feel comfortable to create their own business in the entire world independent from their nationality and citizenship.
The beginning of urbanization and demand for online education
The economy of Vietnam is concentrated on the agriculture. The country is planning to become a new asian leader in this field. But the online demography is telling that the country is heading toward urbanization and its informational potential is developing constantly. In accordance with data of the Internet World Stats 64 million of Vietnamese are internet users. And this number is really impressive taking into consideration that the country’s population is 92 million people.
And the number of users if growing every year. It’s hard to imagine but in 2001 this country was one of the most technologically retarded countries and the number of internet users was less than 1 million.
Vietnamese are well known for their love for social networks. Around 94% of internet users are Facebook users.
Due to their love for communication the vietnamese users especially positively react to creation of new forums and emergence of new opportunities for online communication for several topics. And the most important is that they are ready and want to learn, to receive new information through internet. And the learning materials of the PLC Academy is exactly what they need today.
A demand for online-business
Vietnam has a third place in the ranking of the trust to international online-brands. People are ready and they want to make online purchases. But at the same time Vietnam cannot meet this demand with its own sources.
Such a promising business niche as internet advertising is still almost empty. And in the meantime over 50% of vietnamese daily watch internet videos and are sensitive to the advertising, 70% of which they see on such platforms like Google and Facebook.
The market of e-commerce is growing together with the interest of vietnamese to different goods can be purchased abroad. But this market is not covered yet. The middle and small business is actively growing, but there is no online business. And there is a big demand for it. So we can predict a big interest in the PLC Business and PLC Market platforms in this country. In 2016 the market of electronic commerce was estimated in 2 billion dollars and experts predict its annual growth of 1 billion dollars.
Vietnam also has indications of the digital gap. For instance a middle aged vietnamese could not be able to make an online purchase because he could not simply understand how to do it. However people especially the young generation have growing requirements and only a qualitative product can meet them. So you only need to explain to your customer, how it works, in order to gain their trust.
Characteristics of the network marketing
Network marketing came to Vietnam in 1998. 20 companies working in the health and beauty segment have appeared on the market during the first six years of operations. In 2005 the act #110 setting the rules for direct sales came into effect. The rules shall protect consumers from unfair operations. In accordance to these rules the company shall provide customers with detailed and clear information about the product, take into considerations actual taxation and product quality requirements.
In 2012 77 companies working in network marketing were granted licences from the Trade Ministry of Vietnam. There are 38 companies registered in the capital of Vietnam, Hanoi and the biggest part of them received direct investments. But generally they are selling household chemistry and health and beauty goods.
The number of of statutory amendments adopted in 2016 limit and directly ban the operations of companies working with illegal schemes. This country pays significant attention to the statute of the company, tax payments as well as corporate ethics. But the work of legal companies is welcomed.
The amendments have slowed down a bit the development of the network marketing market in the country. In 20015 the growth was 11% and in 2016 it was 8% only. After after controlling and licence obtaining a company gets increased customer trust. That helped for instance Amway Vietnam Ltd achieve a 39% increase in profits.
Unemployment rate is also contributing to the development of the network marketing market. Many vietnamese want to try themselves in that area. According to Ha Thi Quynh Tram, the Chairwoman of the Vietnamese Direct Sales Committee (AVDSC) 125 000 new partners came to network marketing in 2016.
In that way the legislation really creates a friendly atmosphere for the companies which are fair with their customers and the government of the country.
According to the experts of AVDSC the market of Vietnam does not interfere with the development of the network marketing, all roads are open for the ones who want to develop a business in the country. You only have to comply with business ethic and three rules: you have to protect your customers, protect your suppliers and resolve disputes at as early a stage as possible.