vietnam presentation uo c gsb

BANYAN WAY. TRANSFORMING SUCCESSFUL EXECUTIVES INTO GREAT LEADERS.


THE VIETNAM WAR


Village Children:

Nowhere to run


Then and Now

Same village, new faces


Saigon Street Scene:

Execution of a VC suspect

http://search.aol.com/aol/redir?src=image&requestId=d76fe838c70e1335&userQuery=Vietnam+War+photos&clickedItemURN=http%3A%2F%2Fmain.kundupapa.net%2Fdata%2Fupimages%2Ff7.jpg&moduleId=image_details.jsp.M&clickedItemDescription=Image%20Details


Then and Now

Same street today

http://search.aol.com/aol/redir?src=image&requestId=d76fe838c70e1335&userQuery=Vietnam+War+photos&clickedItemURN=http%3A%2F%2Fmain.kundupapa.net%2Fdata%2Fupimages%2Ff7.jpg&moduleId=image_details.jsp.M&clickedItemDescription=Image%20Details

http://www.trekearth.com/gallery/Asia/Vietnam/photo857044.htm


30 April 1975: The Fall of Saigon

Entering the Presidential Palace


Then and Now

Same palace, same tanks,

but now a tourist attraction

http://members.virtualtourist.com/m/p/m/128820/


Evacuation of the US Embassy


Then and Now

US embassy building razed and now a

single storey building behind high

concrete walls. A block away, this ultra-

modern glass tower housing a Korean

department store.

http://members.virtualtourist.com/m/p/m/cf4c5/


T-shirt for sale, Long Hai beachfront


The Big Picture

• Vietnam vis-à-vis ASEAN and Other Nations

• Key Vietnam Demographics

• Investment Fundamentals

Where the USA Stands

• Top 20 Investor Nations

• Selected US Companies in Vietnam

• Key Concerns & Issues

General Operating Principles

• Patience & Relationships + Case Studies

• Managing Ambiguity + Case Studies

• Lobby for Change + Case Studies

Plus: Selected Vietnam Consumer Snapshots


2006 Population GDP Export

Country Mil %Gr $/Cap %Gr Ex:GDP %Gr

Vietnam 84.2 1.3 723.9 8.2 65.0 38.6

Brunei 0.4 3.5 30928.8 3.8 48.7 23.5

Cambodia 14.0 2.5 436.2 5.0 42.6 12.2

Indonesia 222.0 1.3 1640.4 5.6 28.5 21.4

Lao PDR 6.1 2.5 574.9 7.3 7.2 138.0

Malaysia 26.7 2.1 5880.4 5.9 102.8 14.8

Myanmar 57.3 2.3 208.6 7.0 29.4 12.5

Philippines 86.9 2.0 1351.5 5.3 40.0 14.0

Singapore 4.5 3.3 29499.6 7.9 205.3 18.2

Thailand 65.2 0.7 3167.8 5.0 62.9 18.5

ASEAN 567.4 1.5 1889.3 5.8 71.4 18.6

Source: ASEAN Secretariat

N.B. – 2nd largest rice exporter, 2nd largest coffee , largest peppercorn, + shrimp, rubber, wood products


.

Source: ACNielsen quoting an AT Kearney Study

http://www.bugbog.co.uk/exotic_places/vietnam_travel.html


Age in Yrs 0-9 10-19 20-29 30-39 40-49 50-59 60+

% of Pop 21 21 18 15 12 6 7

60% born after the war

% Literacy Male Female Total

15+ Yrs Read & Write 94 87 90

Source: ACNielsen

Literacy slightly skewed towards males

Source: UNESCO

HH Exp F & B Savings Education Trans/Com Utilities Others

% Split 35 32 10 10 7 6

They save as much as they spend on food and beverage

Source: ACNielsen. Data for AB income only. Savings include compulsory social and health insurance (8pp).

High school girls in ao-dai


STRONG FUNDAMENTALS IN PLACE:

1. Fastest growing economy outside of China

2. Stable political environment

3. Large, literate population with high savings rate

4. Hardworking easily trainable labor force

5. Geo-politically important location Street scene, Hanoi


Rank Nation # of Proj $B Cap* Rank Nation # of Proj $B Cap*

1 Japan 735 4.824 11 USA 306 0.816

2 Singapore 452 3.686 12 UK 79 0.643

3 Taiwan 1550 2.972 13 Russia 47 0.609

4 South Korea 1263 2.606 14 Cayman Is 19 0.570

5 Hong Kong 375 2.132 15 Switzerland 42 0.530

6 Netherlands 74 2.029 16 Australia 124 0.366

7 BVI 275 1.366 17 Bermuda 5 0.193

8 France 178 1.128 18 Germany 80 0.160

9 Malaysia 200 0.995 19 Philippines 27 0.085

10 Thailand 142 0.816 20 Sweden 11 0.014

* Implemented capital in US$ billion. Source: Vietnam Ministry of Planning & Investment (2006 Stats)

USA only #11 in terms of implemented capital as of 2006


Abbot Labs Baxter Dow Chem Halliburton Nike

ACNielsen Bloomberg Effem/ Mars IBM Pepsi

AIG Insurance Bristol Myers Eli Lilly Intel Pfizer

AON Ins Cargill Ernst & Young J & J Philip Moris

AT&T Citibank Exxon JPMorgan P & G

Avon Coca Cola Fedex KimberlyClark SCJohnson

B Mckenzie Colgate GE Energy KPMG Time Warner

Bates DHL Gillette Land’OLakes United Airlines

* Registered AmChamVietnam members


1. Lack of familiarity with the market

• Different culture and language

2. Underdeveloped legal system (“lack of transparency”)

• No written historical precedents

• Laws subject to different interpretations by

ministries and agencies

3. Underdeveloped commercial system

• Banking, finance, and accounting

4. Perceived corruption

5. Short-term: High inflation/ overheated economy

Reunification Day, HCMC


• Negotiations are the platform for building relationships. • Many long meetings full of polite courtesies and tea.

• Items previously agreed raised and renegotiated. “Nothing is agreed until

everything is agreed.”

• More to build the relationship and test your commitment to it rather than a

negotiating tactic to wear you down

• Case Study 1: Asian vs Western Investments in Vietnam

• Case Study 2: J&J Professional Marketing Program

• Contracts considered to be mere formalities.

• Agreements reached during the meetings are what’s binding,

not the contract.

• Case Study: URC Distributorship Agreement

• Never cause the other to lose “face”. • Case Study 1: Rice Wine + Snake Heart with the My Tho Gen Sec

• Case Study 2: Never Say Never – PS Toothpaste MOU with Peregrine Restored Sword Lake, Hanoi


• Learn to manage ambiguity.

• Lean on relationship to resolve issues and not on the contract.

• Be flexible. Bend on certain terms of the contract knowing that when it’s your turn to

ask the other party will also bend.

• Case Study: Minh Phuong Minimum Fee

• Negotiate hard but politely.

• Better to overstretch than ask for what’s “reasonable”. • Know what you can give up or when to walk away.

• Case Study: Bargain Shopping at An Dong Market

• Use the “lack of transparency” in the legal system to advantage.

• Case Study: Kraft’s Oreo vs URC’s Cream-O

• Current inflation worries do not upset the fundamentals.• Case Study: Inflation in the ’80s/ sacks of dongs (“Vietnamese have bigger dongs”), 1996 Crisis

At the fruit market


• With Vietnam’s accession to the WTO (2007), umbrella for actively pushing

for laws to reform legal and commercial systems exists. • Government is pragmatic and listens

• Case Study: Personal Anecdotes Then & Now (2-tier Pay, Travel, Cyclo & Car)

• Government committed to anti-corruption campaign.

• Case Study: Dept of Trade PMU-18

• TDA (Trade & Development Agency), OPIC

(Overseas Private Investment Corporation), and

Exim Bank in Vietnam. Insurance against

sovereign risk available. Family of 5 in a cyclo

Cyclo

Ride


Socio-Eco

Class

% of Pop in

HCMC +

Hanoi

% Product Ownership

Motorbike Car Computer Cellphone Color TV Fridge

AB 31 99 8 82 94 98 99

CD 52 80 3 40 70 98 93

EF 17 55 0 7 36 96 24

Motorbikes are the primary means of

transportation and cell phones have

quickly passed from status symbol to

daily necessity.

Rush hour in downtown HCMC

Source: ACNielsen


Countries

(In US$)

Total

Food

Spend

Fresh Food

Amount % of Total

Vietnam 133 92 69

Thailand 152 63 41

Malaysia 142 67 47

Indonesia 89 46 51

Philippines 76 38 50

Compared to their neighbors, the Vietnamese spend a larger

proportion of their food money on fresh stuff suggesting more

traditional, even healthier, eating habits.

Asleep in the market Source: ACNielsen


Source: ACNielsen

Topics/ % Confide In Family Friends

Personal Health 73 23

Sexual Relations 12 56

Money Issues 66 37

Study/ Career Issues 56 77

Personal/ Physical Development 33 44

Trends and Fashion 16 78

Outside of health and money issues Vietnamese youth seem more

likely to confide in their friends when it comes to other personal and

intimate matters such as sexual relations, and study/ career issues.

Teens in scooter hats


Executive Coaching & Development Company dedicated to transforming

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• Country GM and CMO/ Senior Marketing Exec for P&G, Kraft, J&J, Wrigley

• China, India, SEAsia (Singapore, Philippines, Vietnam), Brazil

• Proven 5-step proprietary process called BanyanSCOPE© starting from

assessment of needs all the way to ensuring that positive changes in leadership

skills and behaviors, once made, become part of habit.

Contact: (312) 618-0206. [email protected]

mailto:[email protected]


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Author of Elegant Leadership

Tristan de la Rosa brings an uncommon blend of masterful real-world experience and rich multi-national & multi-cultural

insight to the Executive Coaching field.

He has decades of leadership experience in some of the world’s largest and most respected companies. Starting out as Brand Manager at

Procter & Gamble, Tristan rose to Chief Marketing Officer and eventually Country Managing Director positions in companies that include Kraft

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Tristan has turned this passion for people development into a fulltime practice with his own executive coaching and leadership development

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speaker at international business fora hosted by the World Trade Center of Illinois and by the Chicago GSB.


[email protected]

(312) 618-0206

mailto:[email protected]

vietnam presentation uo c gsb

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