Why Vietnam?

First and foremost, before we look at the business opportunities available in Vietnam, it is important to establish the basis of locating in Vietnam. The business opportunities available in a country will only be attractive if the conditions in that country can justify the investment.

Over the 10-day trip to Vietnam, a number of companies visited have stated the key reasons as to why they have chosen to set-up in Vietnam.

TOTO Vietnam

1. Vietnam's economy is growing at a very fast pace.

2. The costs of operating/setting up in Vietnam is very reasonable (as compared to other countries).

3. The potential of the market is huge, especially over the next 5 to 10 years. Vietnam has a population of approximately 84 million people.

KinderWorld

1. Sizeable opportunity in the education arena

2. Cheaper rental and construction cost in Vietnam as compared to Singapore (KinderWorld started off in Singapore)

3. Stable political situation in Vietnam

Honda

1. Chance to get licence to operate and manufacture in Vietnam

2. Motorbike business viable as majority of the Vietnamese ride motorbikes instead of cars

3. Policy: If there is demand, Honda will produce. (Good to have factory close to customer)

Casarredo

1. Rising costs in Singapore and moving towards high-technology industries, which Casarredo is not.

CT&D Group

1. Central location of HCMC in the region. All major ports and airports are within similar reach from HCMC. Vietnam is the gateway between China and the ASEAN countries.

2. Human resources and fast-growing market. Skilled, motivated and cost-effective workforce. 84 million population with about 50% below the age of 25. High literacy rate of 92%. Each year there are more than 30,000 graduates from HCMC universities. English proficiency on sharp increase.

3. Abundance of natural resources. Agriculture remains important. Mining, oil and gas sectors are on the rise as other large export earning sectors. Gas power supply for the country's growing demand and industrial development. Vietnam is world's #2 rice producer, coffee exporter and #2 seafood exporter to the US.

4. Positive foreign investment environment. Most politically stable country in the region. Government supports investments with pressure for reforms. GDP growth nearing 7% and is set to increase. Main events for growth include, Doi Moi 1986, Normalisation of relations with the USA (1994), BTA with USA (2001), WTO entry (2007).

CONCLUSION

The most prominent factor is the huge market potential of Vietnam. In a country with a huge population, it is easier for a business to secure a substantial market share so as to reap profits. For instance, one product may not appeal to all consumers, but as long as that product is able to attract a segment of the consumer market (84 million people), the profits are significant.

Learning Points

Business opportunities in Vietnam

From the IBSM trip to Vietnam, I have learnt much about the country, not only in terms of culture, history, the people, but also about the business opportunities available in Vietnam. The business environment in Vietnam is actually very favourable for investors, especially for industries with government support (e.g. technology, infrastructure).

Vietnam, being one of the upcoming economies, has vast investment potential. The country still has much to develop, in terms of infrastructure, education, supporting industries, etc. It is at times like this, where opportunities are abound, waiting to be discovered. It would be harder to exploit business opportunities in more developed countries such as Singapore.

Moreover, it is a good location for entrepreneurs to give a shot a starting a business. The start-up costs are relatively lower, labour is abundant and cost-effective, cheaper raw materials, etc. Besides, as mentioned by Casarredo's host manager, there is an increasing number of supporting industries in Vietnam making it easier to source for materials. The business environment is improving at a significant pace, thus raising the attractiveness of business opportunities available in the country.

Over the trip, these are some of the business opportunities that I have come to know:

Infrastructure
Due to the under-developed infrastructure and the huge amounts of funds required to develop it, the government is strongly encouraging investments in infrastructure by offering various incentives. Many sectors which were previously state-owned, have now been liberalized to attract investment.

Power
The unreliable power supply in Vietnam is due to an excess in demand over supply. The nation's current power generating capacity is largely insufficient, as a result, the government is privatizing the sector. With the privatization of the power sector, which was previously state-owned, investors can participate in the energy market.

Roads

During the bus rides, I observed that a large part of roads was not paved. There was once when the bus was trying to make a U-turn on a soil road, the whole bus was tilted to the left and was stuck in the soil. In the end, the bus had to reverse all the way back.

Water
The water from the tap is unsafe for drinking unlike in Singapore. This presents opportunities for water purification companies like Hyflux. In the case of APB, they have their own water purification system due to the importance of water quality. If Vietnam’s water supply is clean, APB can save on the need for a personal water purification system. Investors can thus examine this aspect.

Logistics
The logistics industry is relatively new in Vietnam and is made up of several small scale companies. As a result, these companies are unable to handle large projects. Therefore, it would be a good opportunity for established logistics firm to enter the Vietnam logistics market.

Industrial Parks
The industrial parks provide ready-built infrastructure, reducing the start-up costs and time of new factories. Moreover, they usually offer excellent infrastructure and convenient distances from major airports/seaports.

Exporters
The HCMC export centre, wholesale centres, and night markets offer goods at cheap prices. Foreign sellers may source their goods in Vietnam for sale in their home countries at a high mark-up. On the other hand, Vietnam is a favourable location for factories of manufacturing companies as the government offers attractive tax benefits for 100% export-oriented companies.

Education
The Vietnamese value education deeply due to their belief in Confucius. Education providers such as KinderWorld and SaigonTech are prospering in Vietnam. Besides, with the huge population of 8.4 million people, education providers need not worry about the lack of demand.

Automobile
Motorcycles can be considered as an essential in Vietnam. Each family in Vietnam has at least one motorcycle, which gives us a rough idea of how huge the motorcycle market is. Besides, Honda mentioned that there's a rising demand for MUVs (6 seater cars) in Vietnam.

Manufacturing

As mentioned by Mr Pang of CT&D group, as most of the production in Vietnam is on a small-scale basis, there is a lack of quality control. The country is unable to engage in mass production due to the absence of huge storage facilities. Thus there are opportunities for investors to invest in large-scale production as well as warehousing.

Logistics

Trucks are used as the main mode of inland transportation by companies in Vietnam (TOTO, Honda, Yamaha, Hatay Brewery). Thus, the trucking business is a viable one. However, companies intending to enter this market should weigh the pros and cons due to urban congestion.

Beer

As the Vietnamese enjoy beer, beer consumption in Vietnam is high. Although beer is sold cheaply in Vietnam (as cheap as 20/30cents a can), the huge population in Vietnam makes up for it. (Meaning if you sell at a mark-up, you can sell less to earn a certain amount of profits. On the other hand, if you sell at low prices, you have to sell more to earn the same amount of profits, which the Vietnamese market is able to offer.)

Reflections

At Changi Airport, setting off for Hanoi, Vietnam.

On 18th September 2007, a group of 35 students a 3 lecturers headed off to Vietnam to begin the International Business Studies Mission (IBSM).

The only 6 from BFS

Vietnamese Cuisine

Sadly, Vietnamese cuisine didn't go well with me. Most of the food was fried, and I ended up with a sore throat. Fried spring rolls seem to appear for each and every meal we had.

And of course, not forgetting the famous "raw" spring rolls. Most of us passed on it after one try. Rice paper and thick bee hoon just don't match.

After a day packed with company visits, we thought we could rest and enjoy at night...

Probably to do some shopping?

Although there was nothing much to buy, I think I spent less than SGD60, including the call card which was around SGD18.

Or have late night supper?

But that was not the case most of the time...

... because we had to finish writing our journals!

Hanoi

Ho Chi Minh City

But all was fine, we still had our fair share of work and play (:

The common scene on the roads of Hanoi and HCMC. It seemed like a life-threatening gamble each time we had to cross the road.

Witness it yourself!

The long and arduous bus rides

which left most of us falling asleep.

Was looking forward to the cultural tours on day 5 & 6, but I was down with flu so didn't really enjoy :(

Goodbye Vietnam!

On the overall, I'd say the IBSM trip was a fruitful and enjoyable experience (:

Day One

Tuesday 18 Sept '07

We arrived at Hanoi, Noi Bai International Airport. Afterwhich, we proceeded to our dinner destination via coach. Along the way, I noticed that the streets in Hanoi are not brightly lit (street lamps are spaced far apart). There are very few high-rise buildings and the houses are tall and narrow, probably due to the French influence. I could see the interior of the houses from the coach as most of them did not have proper doors. Our tour guide, Canh, mentioned that most of the Vietnamese want their house to face a main road so that they can do business (e.g. sell noodles). From this aspect, it can be seen that the Vietnamese are very entrepreneurial.

The roads are packed with motorcycles, which is very different as compared to Singapore where there are more cars. Canh pointed out that this was because it is extremely difficult and costly (about USD1000) to obtain a driving licence in Vietnam.

Business Opportunities:

From the brief stay in Vietnam, I observed that business opportunities can be created by anyone, with or without large sums of capital. For example, as long as a family owns a house facing the street, they will start selling something to earn income. Thus, they are making full use of their time. They can go to work/school in the day, and tend the stall at night. I must applaud the Vietnamese for this, as we Singaporeans are usually dead beat from the stress of a single job, let alone moonlighting.

Day Two

Wednesday 19 Sept '07

Itinerary:
1. TOTO Vietnam Co. Ltd at Thanh Long Industrial Park
2. KinderWorld Kindergarten & Private School
3. 1st Networking Dinner

TOTO Vietnam

TOTO Vietnam is located in Thanh Long Industrial Park. The signboard shows some other tenants of the park.

The host manager of the day was Mr Bao, the production manager of TOTO Vietnam. TOTO is actually a Japanese company which produces sanitary wares and has operations outside its home country (i.e. engages in international business). The company exports to various countries such as German, China, Korea, Japan and Taiwan. The competitive edge of TOTO lies in its Ceramic Fine Ion Technology (Cefiontech), which creates a smoother finish thus making it easier to flush waste particles. Besides this, TOTO products are also recognised for their water saving and flushing ability.

Like most factories, TOTO identifies the different ranks using colours.

• Red Manager
• Blue Supervisor
• Yellow Leader
• Green Foreman
• No tag Worker

Personally, I feel that TOTO has come up with a very good system of ensuring employee satisfaction. There is a suggestion box within the factory and workers will be rewarded for their innovation (only the outstanding ideas). Hence, employees are given a chance to voice out their opinions.

As sanitary wares are bulky in nature, TOTO exports its products by sea while trucks are used for domestic distribution. Mr Bao mentioned that TOTO does not use air freight as it is very costly. The company's product market is 40% domestic and 60% exports.

He also mentioned that the biggest problem of operating in Vietnam is human knowledge. As the production of sanitary ware requires experienced handicraft skills, it takes time to train such workers. In the product line, time is of the utmost importance and a minute less can result in monetary losses. However, the countryside people in Vietnam do not have this mindset.

In Vietnam, the government grants privileges and incentives in terms of land, tax (e.g. on exports), VAT, etc.

Business Opportunities:

Labour intensive companies like TOTO may take advantage of the cost-effective labour in Vietnam. By doing so, they will be able to produce goods at a lower production cost and reap a higher profit margin.

In addition, the government supports foreign investments by granting privileges and incentives. Such grants can snowball to a significant amount of savings for the company, thus potential investors may want to consider locating Vietnam to enjoy such benefits. The government is also very supportive of exports as it wants to protect the domestic producers. Export-oriented companies will thus enjoy further benefits.

KinderWorld Kindergarten & Private School

When we got there, we had trouble crossing the road as it was sardine packed with motorcyclists. The first impression I had when I entered the school was positive, the classrooms were nicely decorated. However, the downside was that the stairs and pathways were all very narrow, creating "human traffic jams" at certain corners while we were touring the classrooms.

KinderWorld is owned by a Singaporean, Mr Ricky Tan. The school provides training for industries in high demand and is planning to open an educational hub in Hanoi (target of 1 million students). The principals and teachers are mostly from Australia and New Zealand, and lessons are conducted in English.

In order to cope with students of different language standards, KinderWorld has English Second Language (ESL) programmes to cater to slower learners. The aim is to have a smaller focus group so that students learn better. Although the kids belong to different nationalities (over 10), there are no racial tensions and they get along very well.

Business Opportunities:

As highlighted by Mr Tan, there is a huge demand for educational services in Vietnam. Hence, there are several opportunities in the education arena. Vietnamese value education very much due to their strong belief in Confucius. Moreover, as mentioned by Canh, all Vietnamese parents are willing to spend money to educate their children.

By entering a market with demand, the chances of success are higher as the product/service caters to the needs of the consumers. IB companies may also be able to have a higher mark-up as consumers are willing to spend.

1st Networking Dinner (Hanoi)

There were 5 guests speakers and they were representatives from the Singapore Business Association Vietnam (SBAV). All of them were from different industries such as education, banking (Citibank), telecommunications (Singtel), etc. The guest at my table was Mr Dennis Khoo, who was in the education line.

In Vietnam, language is one of the most prominent barriers for foreign investors. Even if they were to hire a translator, the essence of what was originally spoken may not be brought across. Thus, it is difficult to establish mutual understanding and misunderstandings may arise.

For foreign companies setting up operations in Vietnam, only 3% of the total workforce can be foreigners. The remaining 97% must be Vietnamese. This regulation is an effort by the government to create employment for the local people.

Business Opportunities

Mr Khoo mentioned that there is a demand of international schools by the youngsters. Even if the parents are not rich, they see the importance of education for their children. For example, the education institution Mr Khoo works at has a waiting list of 3 years due to the high demand. Therefore, demand for a product/service plays an important role in dictating the ultimate success of the business.

With Vietnam's recent admission to the WTO, many bilateral agreements have been signed. This enhances Vietnam's attractiveness as an investment location as current laws and restrictions will be subsequently liberalized to comply with WTO requirements. Exporting from and importing to Vietnam will be more favorable as tariffs will be lowered thereby increasing the profit margin.

There are more private sectors (e.g. Canon) located in Southern Vietnam, thus the government is encouraging more business in the North. This is probably due to over-crowding in the South, for instance, the Saigon port is facing congestion.

As for the infrastructure in Vietnam, land and electricity are expensive. Due to the shortage of power, the government is encouraging foreign companies to set up hydroplants. Companies in the energy sector may want to take on this business opportunity while helping Vietnam to achieve a stable power supply. On the other hand, water supply is relatively cheap and labour is cost-effective.

Day Three

Thursday 20 Sept '07

Itinerary:
1. Vinh Phuc Planning & Investment Department
2. Honda Vietnam
3. Yamaha Vietnam

Vinh Phuc Planning & Investment Department

The speaker was the Vice Chairman of Vinh Phuc Province. He was very hospitable and glad to have us visit Vinh Phuc. During his speech, he compared Vietnam with Singapore a number of times and has hopes that his country will be able to achieve what Singapore has. He was very encouraging as well and welcomes us to go back to Vietnam to invest. Thus, Vietnam is actually very receptive to foreign investment.

Vinh Phuc is located in the North-South of Hanoi (53km away) with a population of approximately 1.2 million. The total land area is 1,400 sq km, which is bigger than Singapore. Vinh Phuc is not very far from Noi Bai International Airport and Kunming, China. There are plans to build a new road connecting with the West from China to Vietnam.

Business Opportunities:

The province can be divided into 3 areas - mountainous, fertile soil and low land. Firstly, the mountainous area has good weather, thus it is suitable for tourism development. Vinh Phuc has plans to build huge resorts in this area (e.g. with Genting). Secondly, as a part of the province is near the Red River, the soil there is very fertile and thus good for agricultural development. The province intends to grow special agriculture in this area so as to boost tourism. Lastly, the low land is apt for developing the industrial aspect (e.g. build Small Medium Enterprises).

Currently, there are 120 projects from 16 countries with a total capital of USD1.5 billion. Despite the influx of foregn investment into Vinh Phuc Province, the province is still calling for investment in high-technology areas and infrastructure. Vinh Phuc is developing to become the IT hub of Vietnam. As the province is in the stage of transition from an agriculture to industrialisation, Vinh Phuc requires better infrastructure (electricity, communication, etc), and requires 1,500 workers to be trained for factories. Moreover, Vinh Phuc is offering various privileges and incentives for foreign investors, especially in human resource for education and healthcare services.

It may be easier to do IB in places like Vinh Phuc whose government welcomes foreign investment as there will be incentives and privileges offered. Companies will be able to enjoy government aid, facilitation of business permits, approvals, etc.

There is a range of opportunities available in Vinh Phuc Province itself. Businessmen can choose to invest in tourism and resorts, infrastructure construction, education, healthcare, IT, etc. Foreign companies can also look towards opening a factory in Vinh Phuc's industrial area or entrepreneurs may start SMEs. Hence, the opportunities are endless but ultimately, it is up to individuals to create them.

Honda Vietnam

The speaker was the CFO of Honda Vietnam. He gave us a brief presentation on Honda and its operations in Vietnam, after which we had a tour around the factory.

Honda has been established in Vietnam for 10 years (since 1996) but got its licence to manufacture automobiles only in 2005. The company started its automobile business in the subsequent year. Honda Vietnam currently has 2 dealers in Hanoi and 2 in HCMC. It is planning to open 2 new dealers in Central Vietnam (Da Nang and Vinh).

The production capacity is 1 million motorcycles and 10,000 automobiles annually. Daily production capacity is around 4,000 motorcycles. There are plans to build a second motorcycle factory next to the current factory with a legal capital of USD62.9 million. Honda Vietnam is 70% owned by Honda and Asia Honda, with the remaining 30% owned by VEAM (government).

There are over 20 manufacturers in Vietnam and Chinese motorbikes dominate the market due to its affordability (3 times cheaper than Honda). In 2002, the company tried to lower its production costs so as to have a more competitive pricing, sales increased significantly as a result. Honda's edge over Chinese motorbikes is its strict quality control (Chinese motorbikes can only last for 2 to 3 years).

In addition, Honda is also practices Corporate Social Responsibility (CSR). There are safety riding activities such as the "Toi Yue Vietnam" contest on VTV. Such actions are highly appreciated by the government and local people. Another event is the "Helmet Fashion 2005" which was aimed at encouraging the younger generation to wear a helmet while riding.

Social contribution is compulsary for companies operating in Vietnam. It can be through education scholarships and donations to funds for children protection. In Honda's case, it offers the Honda Foundation Award which is a scholarship to Japan for the local people.

The host manager mentioned that most Japan companies have factories in Vietnam. As for Honda Vietnam, it is the 5th Honda automobile factory in Asia. One of the reasons is the rising demand for MUVs (6 seaters) since 2003. In Vietnam, Toyota's Innova MUV dominates the market.

Honda's philosophy is based on the 3 Joys: Joy of buying, Joy of selling and Joy of creating. Thus, where there is demand, Honda will produce. Moreover, it is advantageous to have the factory located near to customers.

Yamaha Vietnam

Established in 1998, Yamaha is another Japan company producing motorcycles. For production purposes, the spare parts are imported (from Malaysia, China and Japan) and not produced in Vietnam. About 1,800 units are produced per day and the time taken to assemble a motorcyle is approximately 0.6 minutes, equivalent to 36 seconds.

Motorcycles are very popular in Vietnam and currently there are a total of 18 million motorcycles. Yamaha Vietnam's production is solely for the domestic market and not for export.

Yamaha Vietnam has a workforce of 2,500 workers and the workers are paid about USD80 per month and floor managers USD200.

On the way out, I saw a van filled with mooncakes and noticed that each of the workers carried a box of mooncakes home. Moreover, there were several buses and mini vans waiting outside the factory, and it seemed like company transport. I feel that Yamaha has done well by recognising the need to provide employee benefits. Small actions like this can go a long way as employees are contented with working in Yamaha.

Business Opportunities (Honda & Yamaha)

From the visits to these 2 companies, I have learnt of the popularity of motorcycles in Vietnam thus making it a lucrative market. However, there are also several competitors and certain government restrictions on foreign brands like Honda and Yamaha. For example, the government reduced the production volumn of foreign manufacturers thus affecting their sales.

Thus, although the Vietnam motorcycle industry is a viable one, investors should be prudent. Market timing is also very important. With so many competitors in the market, one should be cautious not to enter the market at a time where supply has outstriped demand.

Day Four

Friday 21 Sept '07

Itinerary:
1. Asia Pacific Brewery/Hatay Brewery
2. Ciputra International City

Asia Pacific Brewery (APB)

Taken while walking to the brewery from the coach.

Layout of the brewery.

Bar counter at the reception area.

L to R: Pauljean, Elena, Me, Michelle, Joanna, Karen

Our host manager for the day is Mr Duncan, and if I remember correctly, he is from Finland. He shared with us a lot about brewing beer and brought us on a tour around the factory. Unfortunately, no photos were allowed inside the factory, which I felt was the highlight of the visit.

I learnt that beer is made from wheat, rice and barley with the most important ingredient - water making up 95%. The remaining 5% is alcohol. Large amounts of water are used to brew beer as it is also used for heating and cooling.

The brewery site is 30 hectares in total and location is very important to APB. The site is 15 km from Hanoi and located next to a highway, facilitating transportation of raw material imports and distribution of beer. 50% of APB's sales is to Hanoi which has a population of 4 million, the remaining 50% is sold in the North of Vietnam.

As water is an important factor, APB has its own 60m deep wells as its water source. The water is processed by themselves and using state-of-the-art systems (reverse osmosis). This is due to the specific requirements of the water for brewing beer.

The power supply in Vietnam is not reliable and during summer there tends to be electricity shortages due to high air-con consumption. Hanoi is currently buying power from China but as safeguard, APB has on-site diesel generators as support. APB also has its own fire engines, just in case.

Each brew takes 6 hours and can produce 250 hectare litres of beer; APB produces 10 brews per day. APB also produces several brews at a time and includes Heineken, Tiger, Anchor and Bivina beer for domestic sale. There is a 5th variation which comes under Anchor beer but for export purposes. The brewing process consists of 4 steps: boiling, purification, fermentation and filtration.

Thereafter, the beer is pumped into bottles at the speed of 40,000 bottles per hour. Some of the machines used include packers, palletizers and labellers. It is then loaded into trucks for distribution.

APB is a USD63 million investment and has a total of 300 employees and they work according to shifts with 70 people per shift. Employees work for a total of 25 hours over 5 days a week. The host manager also mentioned that the equipment is only 5 years old although the buildings were completed long ago (delay due to the Asian Financial Crisis).

It was quite surprising to hear that beer in Northern Vietnam can cost as low as $0.20 which is impossible in Singapore. However, Heineken has a beer premium in HCMC thus it can be sold at a mark-up. One of the competitors is Carlsberg. There is no direct tax and local beer such as Saigon and Hanoi beer get alot of support.

APB's competitive edge is its future position, it has the strongest beer premium brand in Vietnam. Moreover, APB is a state-of-the-art brewery with efficient technology. The company is also looking towards developing its brand portfolio.

I noticed that there are alot of flowers around APB. The purpose of them is to tame down the strong smell that is produced by brewing beer. I felt that the flowers made the brewery look so much nicer!

Inside the Factory

It was interesting to see the bottling process and sky high stacks of beer cans. The machines moved the bottles around on conveyor belts which reminded me of sushi. There was some wastage though, as beer was split all around the floor.

Business Opportunities:

Mr Duncan mentioned that there is growth in beer consumption in Asia (including Vietnam) thus there are opportunities available. Despite the presence of strong competitors with established branding, the Vietnam market is huge (84 million people). Hatay Brewery managed to gain a foothold in the market due to the first-mover advantage. Brands under the brewery such as Heineken has had a long presence in Vietnam.

That said, it is at times like this where companies are still able to leverage on first-mover advantages as the market is not fully developed as yet. As compared to developed countries, the number of industries present in Vietnam are still not complete, and some are relatively new to the country. As mentioned by Casarredo, supporting industries are not readily available in Vietnam which makes it tougher to source for materials, but the situation is improving. Thus, investors will have to act fast before the supporting industries are fully developed. In conclusin, it is easier to exploit first-mover advantages in Vietnam, as compared to a developed country like Japan.

Ciputra International City

The grand entrance to Ciputra International City

Spot the Singapore flag on the left!

Rows of lovely houses

Extremely cosy interior

A model of the housing within Ciputra

I was surprised to see this "Durian Statue"

Ciputra even has facilities such as eateries, supermarkets, etc.

Very self-contained.

Swimming pool for residents

The project is a joint venture with USD2.1 billion investment capital. The Vietnamese government leased the land to Ciputra Indonesia for 50 years to create housing. Due to the rising demand for housing, the government applied to invite Ciputra Indonesia to build in Vietnam. Ciputra measures 323 hectares in total and the cost of one house is USD300,000, high-rise apartments are USD150,000 each. Interested parties need to book and a pay deposit in advance. The waiting time is approximately 6 to 7 years.

The houses are exclusive to the locals and are mostly rented to foreigners, 60% of the residents are foreigners. It is expected that 50,000 citizens will live in Ciputra in the near future. The estate is very self-contained with an international school which residents study at. Moreover, Ciputra has a big security team with 24/7 surveillance, ensuring safety within the estate.

Rental is about USD1,000 per month and foreigners can rent houses in Ciputra for up to 40 years. Houses are built with various concepts such as modern, traditional and European styles. All the furniture are imported from Indonesia.

Many of the rich Vietnamese hope to live here as it holds an international community. Locals living in Ciputra can mingle with the foreigners living there, as a form of cultural exchange which is good for their children. Ciputra organises many events during the year for residents, giving them a chance to mix around. For example, during the mid-autumn festival, Ciputra organised a big event for children.

Business Opportunities:

As mentioned above, there is a rising demand for housing. Since the government personally invited Ciputra Indonesia to build housing in Vietnam, the supply shortage should be rather severe. Property investments usually churn a high profit thus investors may want to cash in on this opportunity.

Besides, Ciputra is an ideal residential area for businessmen to network. As most of the residents are expatriates and rich locals, networking with them may just give rise to unexpected opportunities.