SIGNIFICANT SECTORS There are major opportunities in oil and gas. Most of the crude oil produced is for export. State-owned Petrovietnam has more than 76 petroleum contracts with over 50 international companies and many UK companies already supply equipment and services to this sector. “Retail is another important sector

for us,” adds Brownbill. “Surveys suggest that in excess of 20m Vietnamese have a similar purchasing power to the average Australian. The young people in Vietnam do not leave home as early as Western youngsters, so if they have a good job they have plenty of disposable income. “Vietnam has now achieved what the

UN defi nes as middle-income status – GDP per capita of over a thousand dollars a year – but it is a country of extremes, with very rich individuals, a growing middle class and also extreme poverty. As overseas development assistance begins to fade, the government is looking to alternatives like PPP to fund vital infrastructure projects.” The PPP framework has passed into

law and now projects will need to be identifi ed, with transport, drinking water supply and fl ood prevention the likely front-runners. “Education and training, particularly

English tuition, is in great demand,” says Brownbill. “There is no common language in southeast Asia so everyone needs to speak English to do business with their neighbours. Vocational training is a growth

area, where several UK companies are active helping to provide the skills needed across a range of service sectors. “Financial services is another growing

area. Less than 20 per cent of Vietnam’s population has a bank account. The Vietnamese tend not to have mortgages, but use gold bars as currency for property deals. It is said that there is $23bn-worth of gold in the country. Five foreign banks, including HSBC and Standard Chartered, have a presence in Vietnam following the opening of this sector to foreign investment in 2008. Given the traditional mistrust of banks, it is important to establish your brand at an early stage. Prudential is a leader in life insurance and broke into the market initially by pitching its products to the Vietnamese as a way to save for their children’s education.” Other areas of interest to UK

companies include ports, logistics and infrastructure, with underground train systems planned for Ho Chi Minh City and Hanoi, and, in the longer term, a high-speed rail link between the two cities. The high demand for power has created instability in supply in most parts of the country, although there are considerable resources of coal, oil and gas, hydropower and uranium. There is also potential for biomass, wind and solar power sources, offering opportunities for UK renewable energy companies. At 23 per cent, internet penetration

is among the highest in the developing world. Telephone subscribers (both mobile and landline) reached nearly 160m last year, up 44.4 per cent year-on-year.

GDP HAS DOUBLED BOTH DECADES SINCE 1986

GLOBAL SERVICES HUB Singapore is a leading provider of services such as international banking, trade and maritime fi nance, insurance, treasury operations, asset and wealth management within the region. The country is fast emerging as an

optimal destination for shared services. Centralising activities such as IT, fi nance and logistics offers benefi ts such as lower operating costs, consistent service levels

springboard: | www.ukti.gov.uk | page 27