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Vietnam Economy 2022 | NEXT BIG Asian TIGER | Opportunities in Business, Manufacturing and Exports - YouTube
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Hey, guys, welcome to this new video today,
we're going to talk about Vietnam as the new
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tiger of Asia in terms of business
opportunities, investment, manufacturing and
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exporting. And to talk about this important
subject, I invite Andrew and Vinh who are
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kind of experts about this whole industry.
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They are both from the US, so they know a
lot about that, they are quite updated about
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the last changes and the different
regulation that happened.
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So they will be able to digest these for
you.
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If you remember Vinh, we've been talking
withbefore in a previous video about
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manufacturing in Vietnam.
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So you can consider this video as an update
oneyear after.
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And Andrew have been living in China and can
share about his perspective of being
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involved in this environment.
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Maybe, can you guys get started by yourself
?
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So Andrew first ... Hi, everyone.
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I'm Andrew Hubert and I run a podcast called
Globalism 2.0 where I talk about the new
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economy, the new global economy that we all
find ourselves in.
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I started working overseas in ...
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well a very long time ago, like nineteen
ninety.
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Yes I am old. I've been living in Asia for
over 20 years.
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And I've been training how international
negotiators, managers and leaders can
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communicate and influence more effectively
in Asia.
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Greetings everyone. My name is Vinh and I
moved to Vietnam about three years ago, so
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the first year was in Danang and then two
years in Saigon or Ho Chi Minh City.
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And I'm involved with manufacturing, supply
chain and exports.
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So talking a bit now about the subject of the
US-China trade war, can you give a few
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updates about what's happened recently?
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I know you just tell me there was a news
that is very hot.
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Can you share it ? It's unwrapping even as
we speak?
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So the US and China had their first talk
underthe new administration, of course.
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So the new administration had their first
summit with China in Alaska on March 18.
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And people were impressed at the they
thought there was a lot of conflict with the
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people. China watchers and outsiders were
very impressed by how direct the
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confrontation seemed to be.
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And there's some truth to that in their.
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The upshot is the Biden administration is
bringing the US back to a human rights based
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kind of high road diplomacy, and this is a
big shift from the transactional trade
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oriented. Approach that the Trump
administration took in a lot of ways, this is
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we're back on we're back to the old
relationship between the US and China.
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And the reason I'm chewing out that I'm not
sad about anything.
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And so the US and China are back to the old
relationship where they are a great nation
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competition, and it's a little bit more
acrimonious than it has been in the past.
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But on the other hand, it's very systematic.
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There is a plan and both sides seem to be
heading towards a state level competition.
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So we may see a little bit of decoupling on
the US side.
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Now, the interesting thing is this has been
a long time coming and the EU and Europeans
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have been and Southeast Asia has been trying
to stay on the sidelines and it's just not
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happening anymore. And the EU hasn't brought
in on the side of the line.
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And it looks like now the EU and the United
States and the UK and Australia are creating
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sort of a unified front.
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And they are.
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Approaching or conflicting with time out,
depending on your point of view, China is not
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too happy about it and they have reacted
very negatively to accusations that they are
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practicing, that they're practicing human
rights abuses in western China among the
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leaders. What is your perspective Vinh about
this current situation in the recent update
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about the Alaska talk ?
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Sure. So those that had a lot of hope post
Trump, it seemed pretty obviously that China
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was very offended and it didn't look good at
all.
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And it's just a sign of things to come is
not going to be easy.
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It's not like in during the Trump years
where it was a very aggressive Trump had the
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trade war. He was competitive against China,
anti China.
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And everyone thought, well, Biden is now the
newly elected president, things will get
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better. But it was very obvious that the
Chinese are still quite offended.
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And they were quite angry at even at the
meeting.
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And they were even telling the US, you have
no right to tell us what to do.
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You have no right to tell us we're breaking
any human rights laws.
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You cannot stop China from progressing for
developing.
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And it is quite obvious that there's a lot
of friction.
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And I think that's the of the summary of
what we'll see coming ahead.
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And so now making the link with Vietnam, what
will be from your perspective, the
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opportunities there ?
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It can be related to the manufacturing
sectors in Vietnam, the trades or exports.
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Do you think it will be like a continuation
of a more and more companies moving from
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China and relocating to Vietnam?
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I think so. As we've seen the last 10 years,
there's always this progression of Chinese
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manufacturing moving down to Vietnam.
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So we are seeing that.
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But with Trump's tariffs, it's kind of
magnified.
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It's accelerating the situation.
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And as China and the United States continues
to have this animosity to have this trade
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war, we don't trust each other.
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I think the reputation is the lowest it's
been in history.
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And that means there'll be new opportunities
for Vietnam to continue to attract foreign
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direct investment, to continue to do more
manufacturing.
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And so I think it's a good thing for
Vietnam.
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Ok, and can we talk a bit now maybe Andrew,
about the new EU trade agreements that
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Vietnam signed end of last year if I
rememberwell ?
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Southeast Asia and Asia have been just very
active on trade agreements and Europe and the
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UK have been trying to get involved.
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Vietnam sits right in the middle of ASEAN,
and ASEAN is the key economic union in the
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area. Singapore is the heavy lifter, but
Vietnam and Thailand and Malaysia are all
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emerging as a major manufacturing sectors.
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Southeast Asia's been taking the ASEAN
model, which is all economics, all trade
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facilitation, no human rights, no global
warming, no nothing but transaction.
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And they've been extending that out.
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And now the EU has just signed a big trade
agreement with with ASEAN that basically
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extends all the U.S.
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trade agreements, preferential trade
treatment that ASEAN members receive that
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gets extended to the EU.
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And also for the French, one of the big
sticking points was the ASEAN was not always
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accepting French provincial labels and
designations of location.
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And in the new agreement, they are calling
champagne champagne.
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They are respecting the local names.
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And for the French French luxury brands,
that's been a big deal.
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So there's been a lot more interest in
manufacturing.
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Yes, because the trade agreement, the
tariffs are disappearing.
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But for Europe in general and the French in
particular is a lot more interest in
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marketing into into ASEAN because ASEAN is
going to be the third largest middle class
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market by population, by iconographic in the
world, starting with twenty, twenty five.
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So it's a huge manufacturing center and all
the of the embassies are moving here.
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But it's also a tremendous market that now
the EU has preferential treatment.
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It doesn't.
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So we're still sort of a disadvantage.
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So, yeah, let's see how this middle class
like gets more and more power of buying and
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how the foreign companies, especially
French, French companies, can maybe see that
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you can export to Asia and especially
Vietnam.
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But actually, there are still opportunities
in Vietnam to manufacture and to export.
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This is the main topic I wanted to discuss
with you guys today.
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Vinh, can you share with me exactly which
sectors or which type of products which
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location even in Vietnam?
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There are plenty of manufacturers and
factories currently exporting ?
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I think Vietnam historically has done a
really good job in textiles, wood, furniture,
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kind of the lower labor types of products,
maybe home and garden baskets, wicker
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furniture, things like that.
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Also shoes and sewing.
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That's probably what they're known for most
in terms of high end manufacturing, not so
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much, but it's happening slower.
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I think China is still ten, fifteen years
ahead compared to Vietnam.
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I know Samsung and Electronics in general is
getting more popular in the north near Hanoi
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or outside that area.
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And as we'll see the next three, four or
five years to come, it's only going to
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increase. So though Vietnam does more the
lower types of labor intensive manufacturing,
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I think things will change in five to ten
years as it starts to get more foreign direct
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investments and start investing in
machinery, machinery, automation and
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technology, AI and things like that.
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I just want to jump in.
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One area where Vietnam is making a big push
is electronic vehicles and then fast the
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pretty much the only car company.
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Yeah, yeah.
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Here they've got every electric vehicle and
they've announced a couple of partnerships
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and after the next one, Tesla.
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But they've, they are making a big play to
get into the market and that might put
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Vietnam. We don't want to be in the auto
parts business and they're OK, but it pays a
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lot of competition and this could give them
a little bit of a bump in that very, very
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profitable area. Ok, so let's say I'm a
French person, I have a bit of money and I
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would like to invest in Vietnam to surf this
growth and opportunity for manufacturing,
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which advice you would give to that person
so he can get involved and maybe find
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specific type of products or an area where
he can invest in Vietnam ?
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Good question. I think it really depends on
your niche specifically.
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So if you're looking for wood furniture to
export or is it clothing, you want to figure
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that out? And then I would reach out to
businesses are companies that might be able
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to you could partner with.
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But honestly, I think Vietnam was a little
bit behind the times in that they're not so
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good at customer service or speaking with an
international.
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Clientele, so I think the third thing you
could do is maybe attend a trade show and
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there's various trade shows throughout the
year, normally during without covid times,
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and you can go to the convention center,
whether it be in Ho Chi Minh City, Saigon
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here or even in Hanoi, they have the Vietnam
Expo.
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And then specific, if you're looking for
machinery, outdoor furniture, clothing and
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textiles, you can search that on Google.
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And then they have the certain dates.
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And then I would attend a conference like
that or a trade show and then get more
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information. Ok, so it's a way to really
touch the product.
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I need to talk to some stuff while speaking
in English.
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Right. And you can really negotiate the
price, maybe get get some samples, see if you
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can private label them.
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So I guess it's a good first step.
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Yes. Yeah, that's probably easiest.
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What would you like advice for investors
looking to manufacture global opportunity in
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your charm? Eurocham is a great resource.
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It's expensive to join Eurocham, but they
have a lot of events, a lot of online stuff
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now because of it, and they publish a lot.
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So you can reach out.
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And a lot of times you can get the names of
people in your industry.
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If you're from the EU, from the United
States and you're coming to a place like
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Vietnam, you don't know the lay of the land,
other expats or great resource.
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So I like LinkedIn, but you might prefer
Facebook or some some other social media hook
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up with the people who have already done
this, learn from their mistakes.
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And people are very helpful in these times
because we're all locked down here in Vietnam
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so no one can talk to it.
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And it's not a steady stream of newcomers at
these happy hours I used to have.
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So now we're really willing to reach out and
spend time with people on these message
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boards and groups.
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Ok, thank you.
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Thank you. I hope you guys get some tips and
some update from us, people who are really
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following the news and now aware of all the
opportunities in these manufacturing sectors
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and getting them for the next year.
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You can check into this picture.
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That will be some need some resources so you
guys can know that to be more about the
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subject and maybe reach in there with the.
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Thanks again, guys, for this interview.
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And I see you again in a new video.
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Thanks, Guillaume.
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