SOLVAY BUSINESS SCHOOL MASTER IN MANAGEMENT PROGRAM MMVCFB 6 MARKETING STRATEGY FOR FDI CONSULTING SERVICES OF INVESTCONSULT GROUP – HCMC BRANCH THESIS TUTOR : Assoc.. 59 CHAPTER 3 MAR
PROBLEM CONTEXT
OBJECTIVES OF RESEARCH STUDY
The objectives of the research study are described as follows
This article reviews existing literature on services marketing and provides an overview of the foreign direct investment (FDI) consultancy service market in Vietnam, highlighting key success factors and common challenges experienced by FDI consultancy service providers It examines market trends, identifies opportunities for growth, and analyzes the reasons behind successful and unsuccessful cases, offering valuable insights for businesses looking to enter or expand in Vietnam's dynamic FDI consultancy sector.
Secondly, to introduce about InvestConsult-HCM, its services and to access the current marketing activities of the company on FDI consultancy services during the last three years
To develop an effective marketing-mix strategy for InvestConsult-HCM’s FDI consultancy services, it is vital to integrate insights from services marketing literature with a thorough analysis of the company’s internal strengths and external opportunities in the current market By leveraging a strong understanding of customer needs, competitive positioning, and market trends, InvestConsult-HCM can optimize their product offerings, pricing, promotional activities, and distribution channels to attract and retain foreign direct investment clients, strengthening their presence in the consultancy sector.
Finally, to give some solutions and recommendations on how to get more FDI inflow into Vietnam.
SCOPE AND LIMITATION OF RESEARCH STUDY
This research will concentrate on the marketing strategy for FDI consultancy services of InvestConsult-HCM after Vietnam becomes the 150 th member of the World Trade Organization (WTO) by end 2006
InvestConsult Group operates nationwide with main offices in both Hanoi and Ho Chi Minh City The company’s head office and the InvestConsult Development Research Institute are based in Hanoi, while its Ho Chi Minh City branch serves clients in the South This article will analyze and highlight the marketing strategies and activities specifically conducted by the Ho Chi Minh City branch of InvestConsult Group.
InvestConsult Group specializes in comprehensive FDI consultancy services for foreign investors in Vietnam, guiding them through all administrative procedures required to obtain investment licenses or certificates With expertise in both pre-license and post-license processes, InvestConsult Group assists international enterprises in successfully establishing and starting their investment and business ventures in Vietnam.
This research addresses the evolving investment environment in Vietnam following its accession as the 150th member of the WTO, highlighting significant changes and ongoing needs for adaptation within the country's business landscape.
METHODOLOGY
To conduct the study, a combination of desk study and field survey was used
The desk study encompassed reviewing legal instruments, collecting information from mass media, online sources, legal databases, and reference papers, as well as analyzing and validating findings The process included drafting and reviewing research documents and other related tasks, ensuring thorough examination of all relevant materials for comprehensive results.
Reference papers, international research papers, publications, related studies… were used as valuable inputs for the research
In late 2006, the author led a team at InvestConsult-HCM to survey clients’ perceptions and satisfaction with the company’s services, aiming to enhance clients’ understanding and inform future marketing strategies The survey targeted 90 clients who had engaged with InvestConsult-HCM at least three times or for a minimum of two years; 42 completed questionnaires were returned Responses were analyzed using SPSS software, with the research focusing specifically on feedback related to FDI consultancy services.
In-depth interviews were also held with 02 similar local service providers (Vision
& Associates and FISC) in order to obtain some valuable information on the issues in study
- Literature reviews on services and service marketing
- Overview on FDI consultancy market in Vietnam
- Success and failing experience of some FDI consultancy service providers in Vietnam
- Introduction of Investconsult Group – HCMC Branch and its services
- Current marketing activities of Investconsult Group – HCMC Branch in FDI consultancy services
- SWOT analysis on Investconsult Group – HCMC Branch
Marketing-mix strategy for FDI consultancy services of InvestConsult Group – HCMC Branch
The thesis includes the following key parts:
• Chapter 1: Overview on service marketing and the market of FDI consultancy services in Vietnam
• Chapter 2: Introduction of InvestConsult-HCM and its FDI consultancy services
• Chapter 3: Marketing strategy for FDI consultancy services of InvestConsult- HCM
STRUCTURE OF THE STUDY
OV O VE ER RV VI IE EW W O ON N S SE ER RV VI IC C E E M M AR A R K K ET E TI IN NG G A AN N D D
SE S ER RV VI IC CE ES S I IN N V VI IE ET T NA N A M M
1.1.2 Characteristics of services and their marketing implications
1.1.3 Role of services in economy
1.1.4 Services in the development of enterprises
1.2 An introduction of service marketing
1.3 FDI consultancy market in Vietnam
1.3.2 Sketching out consumers of FDI consultancy services in Vietnam 1.3.3 FDI statistics in Vietnam
1.4 Experience of some companies in providing FDI consultancy services in Vietnam
1.4.3 Lesson learned from success and failing experience
AN INTRODUCTION TO SERVICES
1.1.2 Characteristics of services and their marketing implications
1.1.3 Role of services in economy
1.1.4 Services in the development of enterprises
1.2 An introduction of service marketing
1.3 FDI consultancy market in Vietnam
1.3.2 Sketching out consumers of FDI consultancy services in Vietnam 1.3.3 FDI statistics in Vietnam
1.4 Experience of some companies in providing FDI consultancy services in Vietnam
1.4.3 Lesson learned from success and failing experience
OV O VE ER R VI V IE EW W O ON N S SE ER R VI V IC CE E M MA AR R KE K ET TI IN NG G A AN ND D T TH HE E
MA M AR RK KE ET T O OF F F FD DI I C C ON O NS SU UL LT T AN A NC CY Y S SE ER RV V IC I C ES E S I IN N V VI IE ET TN NA AM M
A service is often described as a deed, process, or performance provided by one party to another, without transferring ownership of any physical asset According to Philip Kotler, a service is an intangible act that may be linked to a physical product but remains fundamentally distinct from goods This understanding emphasizes the non-material and experiential nature that sets services apart from tangible products.
1.1.2 CHARACTERISTICS OF SERVICES AND THEIR MARKETING IMPLICATIONS
Services have four major characteristics that greatly affect the design of marketing programs
Intangibility sets services apart from physical goods, as services involve performances and efforts rather than tangible objects Because services cannot be seen, touched, or sensed like products, customers often seek evidence of service quality in aspects such as location, staff, equipment, communication materials, symbols, and pricing Service providers must focus on managing these tangible cues to help customers evaluate and trust the service, effectively making the intangible aspects of service more apparent This approach is crucial for building customer confidence and reducing uncertainty during the purchasing decision.
1 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition service marketers are challenged to put physical evidence and image on their abstract offers
The service experience is shaped by inseparability, which highlights the close connection between the service provider, the customer, and other customers involved in the process Unlike manufacturers who operate apart from their customers, service providers must design their operations to accommodate direct interactions These interactions, known as critical incidents, significantly influence customer satisfaction and retention, presenting opportunities for both positive and negative outcomes.
A key distinction between goods and services is heterogeneity, which refers to the variability in service delivery from one interaction to another Unlike goods, services are produced and consumed simultaneously, meaning customers are directly involved in the process This real-time involvement makes it challenging to apply quality-control measures before service completion and can lead to inconsistencies, especially when customers themselves contribute to quality issues.
Perishability sets services apart from goods, as services cannot be stored, reserved, or inventoried While goods can be kept for future sale, any service capacity unused at the time of availability vanishes, making services time-sensitive and non-recoverable.
1.1.3 ROLE OF SERVICES IN ECONOMY
The service sector has become a vital part of global and Vietnamese economies, with its influence touching every area of daily life Driven by ongoing demographic shifts, social trends, economic developments, and political factors, the expansion of services is set to continue.
Vietnam's service sector has contributed significantly to economic growth, yet its development has lagged behind other countries Currently, services make up less than 40% of Vietnam's GDP, which is considerably lower than the 50% average for low-income nations and 71% for developed economies This slow structural shift highlights the sector's limited competitiveness and the need for modernization to compete globally.
Figure 1.1: GDP structure of Vietnam in 2005 and 2006
Source: General Department of Statistics
In Vietnam, services such as housing, transportation, communication, health care, education, and sanitation play a crucial role in poverty reduction and meeting the basic needs of the population The government has traditionally led the provision of these essential services, shaping a regulatory and business environment focused on public welfare Recently, evolving socioeconomic factors are driving significant changes in policy and service delivery across the country.
2 Report of MPI-UNDP Project VIE/02/009 – Trade in Services, Comprehensive Development Strategy for the Services Sector in Vietnam, March 2005
GDP Structure in 2005 (current price)
Ariculture, Forestry and Fishing Industry and Construction Services
GDP Structure in 2006 (current price)
The Agriculture, Forestry, and Fishing industries, alongside Construction Services, are influenced by various national-level factors, including internal dynamics like economic recovery and efficiency, and external pressures such as growing international competition, regional integration, and multilateral negotiations In recent years, trade has emerged as a key driver for growth and development within these sectors.
Over the past eighteen years, Vietnam has transformed its services sector through comprehensive reforms introduced under the “Doi Moi” policy, which aims to develop a market economy guided by socialist principles The government’s strategy has led to significant updates in legislation and administration, driving market liberalization and fostering competition among service providers These changes have shifted the country toward a more market-driven services economy, supporting stronger economic growth, improved living standards, and reduced poverty rates.
1.1.4 SERVICES IN THE DEVELOPMENT OF ENTERPRISES
In order to be successful in starting and developing business, the entrepreneurs obviously engage business development services, including consultancy services
A study by the Vietnam Chamber of Commerce and Industry, the GTZ-SME Promotion Project, and SwissContact estimated the value of Vietnam’s business development services market at $27 million in 2002, growing at an annual rate of approximately 10% This sector is emerging, with limited awareness on both the supply and demand sides Ha Noi and Ho Chi Minh City dominate the market, accounting for 90% of the total share, with 60% of expenditures on business development services coming from Ho Chi Minh City, primarily driven by foreign-invested companies.
The general local population, including entrepreneurs and government officials, often lack sufficient and accurate understanding of the value and significance of services, particularly consulting services Vietnamese entrepreneurs rarely engage professional consulting services, instead relying on employees or personal connections for their business needs Many consider purchasing these services unnecessary, regardless of the potential advantages or the essential role such services play in modern business operations.
Foreign investors from industrialized countries often seek to outsource services and engage external expertise to enhance their business operations in Vietnam They rely on consulting firms to access additional resources, skills, and knowledge, aiming to mitigate risks associated with surveying, investing, and conducting business This need is heightened by perceptions of Vietnam's legal framework as inadequate and less protective for foreign investors, making professional consulting services an essential component of successful market entry and ongoing operations.
AN INTRODUCTION OF SERVICE MARKETING
Marketing encompasses various definitions, primarily viewed as the strategic planning and execution of pricing, promotion, and distribution to facilitate exchanges that align with personal and organizational objectives The American Marketing Association emphasizes these aspects, while Philip Kotler describes marketing as a social and managerial process where individuals and groups satisfy needs and wants by creating, offering, and exchanging valuable products or services.
Marketing thinking developed initially in connection with selling physical products Yet one of the major mega trends has been the phenomenal growth of services
3 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition, Page 6
Service businesses differ from those offering physical products due to their intangible, inseparable, variable, and perishable nature, making traditional marketing strategies less effective When a customer visits a bank for a loan, they experience not only the tangible aspects like the building, furniture, and equipment, but also interact with staff, such as the loan officer, while observing other customers However, much of the service process occurs behind the scenes, supported by an organizational system that remains unseen Together, these visible and hidden factors contribute to the complexity and variability of the service experience.
Figure 1.2: Elements in a Service Encounter
Advertising Billing and payment Sales calls Media stories Word-of-mouth comments Random exposures to personnel and facilities Market research studies Not visible to customer Visible to customer
Other services The Service Business as a System
In view of this complexity, Gronroos has argued that service marketing required not only external marketing but also internal and interactive marketing (see Figure 1.3)
4 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition
Figure 1.3: Three types of marketing in service industry
External marketing involves activities such as preparing, pricing, distributing, and promoting services to customers, ensuring visibility and accessibility Internal marketing focuses on training and motivating employees, empowering them to deliver better customer service Interactive marketing highlights the importance of employees' skills in client interactions, as clients evaluate service quality based not only on technical expertise but also on the effectiveness and attitude during service delivery.
Some services make it difficult for customers to evaluate technical quality, even post-purchase, leading to increased perceived risk Because services often rely on experience and credence attributes, consumers tend to trust word-of-mouth over traditional advertising when choosing a provider Key factors influencing their judgment of service quality include price, staff professionalism, and tangible cues Satisfied customers also tend to develop strong loyalty toward their service providers.
Competition in service markets has intensified, making marketing a crucial factor that separates successful companies from those that struggle As a result, businesses in the service industry now recognize the significant impact of effective marketing strategies in driving growth and staying ahead in the marketplace.
Three types of Marketing in Service Industries
Effective company marketing involves clearly identifying business strategies and targeted objectives to achieve growth As competition in the service industry intensifies, adopting precise service marketing techniques is essential for standing out and attracting customers.
EXPERIENCE OF SOME COMPANIES IN PROVIDING FDI
1.4.3 Lesson learned from success and failing experience
OV O VE ER R VI V IE EW W O ON N S SE ER R VI V IC CE E M MA AR R KE K ET TI IN NG G A AN ND D T TH HE E
MA M AR RK KE ET T O OF F F FD DI I C C ON O NS SU UL LT T AN A NC CY Y S SE ER RV V IC I C ES E S I IN N V VI IE ET TN NA AM M
A service is typically understood as a deed, process, or performance offered by one party to another According to Philip Kotler, a service is any act or performance that is essentially intangible and does not result in ownership of any physical item The production of a service may be independent of or connected to a tangible product.
1.1.2 CHARACTERISTICS OF SERVICES AND THEIR MARKETING IMPLICATIONS
Services have four major characteristics that greatly affect the design of marketing programs
Intangibility is a core feature that sets services apart from goods, serving as the foundation for other unique service characteristics Unlike physical goods, which can be seen and touched, services are performances and experiences that cannot be directly sensed Because services lack physical attributes, customers often rely on cues such as location, staff, equipment, branding, and pricing to judge quality Service providers must therefore focus on making intangible elements more tangible by managing visible evidence of service quality, helping customers feel more confident in their purchase decisions.
1 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition service marketers are challenged to put physical evidence and image on their abstract offers
Inseparability is a key aspect of the service experience, highlighting the close interaction between service providers, customers, and other participants during service delivery Unlike manufacturing, where producers rarely interact with buyers, service operations require providers to design their processes around the customer’s presence These direct encounters, known as critical incidents, significantly influence customer satisfaction and retention, offering important opportunities for service improvement or the risk of customer loss.
A key distinction between goods and services is their heterogeneity, meaning service transactions can vary significantly in consistency Since services are delivered in real time and customers are directly involved in the process, any issues that arise cannot be addressed with quality-control measures before reaching the customer In some cases, the customer’s own involvement may contribute to the quality challenges of the service.
Perishability sets services apart from goods because services cannot be stored, inventoried, or reserved for future use Unlike tangible goods, which may be kept and sold later, any unsold service capacity disappears once lost, making services inherently perishable.
1.1.3 ROLE OF SERVICES IN ECONOMY
The service sector has become increasingly significant across the globe and in Vietnam, shaping nearly every part of daily life Driven by ongoing demographic, social, economic, and political shifts, the rapid expansion of services shows no signs of slowing down, marking its crucial role in both local and international economies.
Vietnam's service sector has become a key driver of economic growth but remains less advanced and competitive compared to other countries Despite its development, the sector contributes less than 40% of Vietnam’s GDP, falling short of the 50% average in low-income nations and the 71% share typical of developed economies The country’s economic structure has shifted slowly, resulting in the service sector lagging behind regional and global benchmarks.
Figure 1.1: GDP structure of Vietnam in 2005 and 2006
Source: General Department of Statistics
In Vietnam, services like housing, transportation, communication, healthcare, education, and sanitation have played a critical role in reducing poverty and meeting the population’s basic needs This social significance has led the government to take the lead in regulating and providing these services, shaping a unique business and policy environment As Vietnam’s economic landscape evolves, a range of dynamic factors continue to influence the development and implementation of service sector policies.
2 Report of MPI-UNDP Project VIE/02/009 – Trade in Services, Comprehensive Development Strategy for the Services Sector in Vietnam, March 2005
GDP Structure in 2005 (current price)
Ariculture, Forestry and Fishing Industry and Construction Services
GDP Structure in 2006 (current price)
The agriculture, forestry, fishing, and construction services industries are being shaped by both internal factors like economic recovery and efficiency improvements, and external pressures such as rising international competition, regional integration, and multilateral negotiations In this evolving landscape, trade has emerged as a key driver of growth and development at the national level, significantly impacting the performance and progress of these vital sectors.
Over the past eighteen years, Vietnam has made significant reforms in its services sector under the “Doi Moi” policy, which focuses on transforming the economy towards a market-oriented system with socialist principles These changes have included major updates to legislative, regulatory, and administrative frameworks governing service activities The government’s market liberalization measures in the services sector have been designed to boost competition, increase efficiency, and support sustainable economic growth, ultimately aiming to improve living standards and reduce poverty nationwide.
1.1.4 SERVICES IN THE DEVELOPMENT OF ENTERPRISES
In order to be successful in starting and developing business, the entrepreneurs obviously engage business development services, including consultancy services
Vietnam’s business development services market was valued at approximately $27 million in 2002, with an annual growth rate nearing 10%, according to the Vietnam Chamber of Commerce and Industry, GTZ-SME Promotion Project, and SwissContact The industry is in an early growth phase, with limited awareness among both providers and clients Ha Noi and Ho Chi Minh City dominate the market, accounting for around 90% of the national share, and entrepreneurs from Ho Chi Minh City—especially those from foreign direct investment (FDI) enterprises—make up 60% of total spending on business development services.
Awareness of the value and significance of services, particularly consulting services, remains limited and often inaccurate among both the general public and key groups such as entrepreneurs and officials in Vietnam Most Vietnamese business owners have yet to develop the habit of utilizing professional services and rely instead on staff or personal networks for support Despite the potential advantages and widespread relevance of consulting services, they are generally seen as unnecessary, leading to a low demand and limited integration into standard business practices.
Foreign investors, mainly from industrialized nations, are increasingly looking to outsource and contract services in order to enhance their business performance by leveraging external expertise and resources These companies seek consulting services to mitigate potential risks associated with surveying, investing, and operating in Vietnam This need is heightened by concerns over Vietnam’s underdeveloped legal framework, which is perceived as insufficiently protective by many foreign businesses.
1.2 AN INTRODUCTION OF SERVICE MARKETING
Marketing involves planning and implementing strategies for pricing, promoting, and distributing ideas, goods, and services to achieve both personal and organizational objectives According to experts like the American Marketing Association and Philip Kotler, marketing is a social and managerial process that enables individuals and groups to fulfill their needs and wants by creating, offering, and exchanging valuable products with others.
Marketing thinking developed initially in connection with selling physical products Yet one of the major mega trends has been the phenomenal growth of services
3 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition, Page 6
Service businesses differ from physical product businesses due to their intangibility, inseparability, variability, and perishability, making them harder to manage with conventional marketing strategies When a customer visits a bank to obtain a loan, they encounter both tangible elements like the building, interior, equipment, and staff, and intangible aspects such as the complex organizational processes operating behind the scenes The final service experience is shaped by numerous interconnected factors, creating challenges for consistent service delivery and emphasizing the unique dynamics that distinguish the service industry.
Figure 1.2: Elements in a Service Encounter
Advertising Billing and payment Sales calls Media stories Word-of-mouth comments Random exposures to personnel and facilities Market research studies Not visible to customer Visible to customer
Other services The Service Business as a System
In view of this complexity, Gronroos has argued that service marketing required not only external marketing but also internal and interactive marketing (see Figure 1.3)
4 Philip Kotler (1994), Marketing Management, Prentice-Hall International, 8 th edition
Figure 1.3: Three types of marketing in service industry
MAIN SERVICES OF INVESTCONSULT GROUP
2.3 FDI consultancy services of InvestConsult-HCM
2.3.1 Evaluation of the results on providing FDI consultancy services of InvestConsult-HCM for the last three years
2.3.2 Process for implementing FDI consultancy services of InvestConsult- HCM
2.3.3 Marketing activities of InvestConsult-HCM to the FDI consultancy market
2.3.4 Marketing organization at InvestConsult-HCM
2.3.5 SWOT Analysis on InvestConsult-HCM
IN I NT TR R OD O DU UC CT TI IO ON N O OF F I IN NV VE ES ST TC CO ON N SU S U LT L T G GR RO OU UP P – – H HC CM M C C
BR B R AN A NC CH H A AN ND D I IT TS S F FD DI I C CO ON NS SU UL LT TA AN N CY C Y S SE ER RV VI IC CE ES S
2 11 HHISISTTOORRYY AANNDD DDEEVVEELLOOPPMMEENNTT OOFF IINNVVEESSTTCCOONNSSUULLTT GGRROOUUPP
22 11 11 E ES ST TA AB BL LI IS SH HM ME EN NT T H HI IS ST TO OR RY Y
The history of InvestConsult Group is closely linked with the implementation of the
The concept of founding a professional consulting company in Vietnam took shape in 1987, during the country’s “Doi Moi” reform period Mr Nguyen Tran Bat, who currently serves as Chairman and General Director, played a key role in establishing the Bureau for Promotion and Development of Intellectual Property Activities This bureau later evolved into the Investment & Intellectual Property Consultancy Company (INVESTIP), managed by the State Committee of Science and Technology, which is now part of the Ministry of Science and Technology.
In 1989, with support from Vietnam’s National Center for Scientific Research, Mr Bat and his colleagues founded InvestConsult Ltd, pioneering foreign investment consulting services in Vietnam By expanding and shifting its business activities to focus on investment consultancy and technology transfer, InvestConsult became one of the country’s earliest firms to offer expert guidance to foreign investors.
With almost 18 years of experience, InvestConsult Group stands as one of Vietnam’s premier consulting firms, offering a broad range of services across investment consultancy, business law, intellectual property, business management, financial advisory, and administrative support The group employs 220 full-time staff and works with over 100 collaborators across its offices in Hanoi, Ho Chi Minh City, and Can Tho, ensuring comprehensive, local expertise for clients nationwide.
Established in late 1989, InvestConsult’s Ho Chi Minh City Branch delivers comprehensive consultancy services for foreign investment, targeting projects in the Southern Region to strengthen the firm's presence in Vietnam’s leading investment and commercial hub With a team of over 60 skilled lawyers and consultants specializing in legal, economic, financial, technological, trading, and business management fields, the branch has played a significant role in driving the ongoing success and expansion of InvestConsult Group.
22 11 22 VI V IS SI IO ON N A AN ND D M MI IS SS SI IO ON N
InvestConsult Group aims to foster creativity and drive sustainable development, with a vision to establish itself as a leading, reputable consultancy in Vietnam The founders are committed to expanding the group’s reach internationally and making meaningful contributions to the nation’s growth and innovation.
InvestConsult Group operates with its head office in Hanoi overseeing the Northern Region, while its Ho Chi Minh City branch manages the Southern Region, covering areas from Thua Thien-Hue to the Mekong Delta The InvestConsult Development Research Institute, a key member of the group, specializes in research on Vietnam's development, economic and social trends, legal matters, globalization, and strategic expansion of the Group.
The head office oversees seven subsidiaries and departments, delivering consultancy services to businesses across the Northern Region of Vietnam In the Southern Region, the Ho Chi Minh City Branch administers two subsidiaries and four departments, including an office in Can Tho City, offering professional consultancy services for investors and enterprises These comprehensive regional networks ensure effective support for the Vietnamese business community.
Figure 2.1: Organization Chart of InvestConsult Group
2 22 MMAIAINN SSEERRVVIICCEESS OOF F IINNVVEESSTTCCOONNSSUULLTT GGRROOUUPP
InvestConsult Group plays a key role in supporting both foreign and local enterprises in Vietnam, guiding them through pre-license and post-license administrative processes The firm stands out for its in-depth consultation, providing clients with comprehensive knowledge of the legal environment, detailed analysis of business opportunities, and recommendations for optimal investment structures InvestConsult Group is committed not just to the initial setup of businesses but also to their long-term growth and sustainable development, offering thorough, tailored advice based on each client's unique circumstances.
InvestConsult Intellectual Property Agency Ltd.
Project Consulting Dept CanTho Office
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Below are some main services of InvestConsult Group (which includes several groups of services):
22 22 11 LE L EG GA AL L S SE ER RV VI IC CE ES S
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InvestConsult Group has specialized in legal consulting since its founding, building a reputation over 18 years of service With more than 60 lawyers and legal professionals across two law firms, InvestConsult Group stands as the largest local law firm in Vietnam, providing expert legal solutions to its clients.
InvestConsult’s lawyers bring years of expertise working with foreign clients and major international law firms like Deacons, Baker McKenzie, Clifford Chance, and Freshfields The firm’s high-quality legal services stem from strong teamwork between its lawyers and consultants As Vietnam becomes increasingly integrated into the global market, many key lawyers at InvestConsult have joined organizations such as the Inter-Pacific Bar Association and Law Asia, enabling regular collaboration and knowledge-sharing with international peers Most InvestConsult lawyers are also active members of the Ho Chi Minh City and Hanoi Bar Associations, solidifying their reputation within Vietnam’s two main legal communities.
InvestConsult delivers not only insightful legal advice but also effective practical solutions to help clients navigate legal challenges arising from inconsistencies in a transitional legal system This approach ensures clients overcome obstacles smoothly and benefit from strategies tailored to changing regulations.
- Employment, Labour Relations and Trade - Union Matters
InvestConsult IP Agent, one of Vietnam's top five industrial property firms, was established in 1989 when senior experts from the Bureau for Promotion and Development of Industrial Properties Activities joined InvestConsult Group With a team of 45 experienced trademark and patent attorneys, InvestConsult IP Agent delivers comprehensive intellectual property services The firm’s senior lawyers are active members of the International Trademark Association (INTA), the Asian Patent Attorney Association (APAA), and the Vietnam Intellectual Property Association (VIPA), ensuring expert representation and industry-leading knowledge in all aspects of intellectual property protection in Vietnam.
FDI CONSULTANCY SERVICES OF INVESTCONSULT-HCM
InvestConsult Group stands out for offering comprehensive, multi-disciplinary consulting services to investors, covering areas such as business opportunity identification, market surveys, project preparation, legal and financial advisory, technology transfer consultancy, industrial property rights protection, dispute resolution, and management consulting This article focuses specifically on the FDI consulting services provided by InvestConsult-HCM, which guide foreign investors through the process of obtaining investment licenses and certificates required to commence official business operations in Vietnam.
2.3.1 EVALUATION OF THE RESULTS ON PROVIDING FDI CONSULTANCY
SERVICES OF I NVEST C ONSULT -HCM FOR THE LAST THREE YEARS
2.3.1.1 Business results of InvestConsult-HCM for the last three years
The Asian financial crisis of 1997 led to a significant drop in FDI inflows to Vietnam, which directly impacted InvestConsult-HCM’s revenues from 1998 to 2000 However, the company’s fortunes improved starting in 2000, and by 2004, InvestConsult-HCM achieved a milestone with revenues surpassing one million US Dollars—a 133% increase over the previous year This upward momentum continued over the next three years, consistently recording annual revenue growth and maintaining a strong financial performance.
Figure 2.2: Business results of InvestConsult-HCM for the last 03 years
Revenue from FDI consultancy services
InvestConsult-HCM’s total revenue structure has shifted over the years Prior to 2005, FDI consultancy services consistently contributed less than 30% of overall revenue, with most income generated from legal and consulting services focused on tax optimization, incentive applications, and FDI project restructuring However, in 2006, FDI consultancy services accounted for 41% of total revenue, driven by effective marketing strategies and Vietnam’s increasingly favorable environment for foreign investment.
2.3.1.2 Total new FDI projects to which InvestConsult-HCM rendered consultancy services for the last 03 years
Figure 2.3: FDI projects to which InvestConsult-HCM rendered consultancy services
Investment Capital No of projects
Over the past three years, InvestConsult-HCM has supported several new FDI projects in Vietnam, with the peak number of projects occurring in 2005, totaling 25 However, 2006 saw the highest registered capital among these projects, approaching $700 million USD These results align with overall FDI inflow trends in Vietnam during this timeframe Notably, in 2006, revenue from FDI consultancy services accounted for 41% of InvestConsult-HCM’s total income.
In 2023, only 17 foreign direct investment (FDI) projects were launched, featuring major ventures such as the joint collaboration between Saigon Port and PSA Singapore investing $165 million in Thi Vai International Port, and the partnership between Phong Phu Corporation and ITG USA pouring $85 million into a textile-dyeing-garment complex in Da Nang Highlighting the scale of investment, the Kumho Asiana Plaza Project in Ho Chi Minh City attracted nearly $250 million for its commercial, office, and residential compound Additionally, larger-scale housing development projects further contributed to the growth of the sector.
Major infrastructure projects in Ho Chi Minh City are nearing completion and are set to be submitted for Investment Certificates, which is expected to significantly boost the city's FDI inflow in 2007 and drive notable revenue growth for companies operating in Vietnam.
2.3.1.3 Evaluation of clients on FDI consultancy services of InvestConsult-
In late 2006, the author led a survey with the InvestConsult-HCM team to assess client perceptions and satisfaction with the company’s services Feedback from this survey aimed to enhance clients’ understanding of InvestConsult-HCM’s offerings and provide actionable recommendations to strengthen the company’s marketing strategy.
The survey targeted clients who have engaged with InvestConsult-HCM’s services at least three times or for a minimum of two years, resulting in 42 completed questionnaires out of 90 distributed—a response rate of 46.7% The questionnaire covers four key areas: client awareness of InvestConsult and its services, satisfaction with the services used, evaluation of InvestConsult’s staff, and client recommendations For this thesis, only responses related to FDI consultancy services are analyzed, providing detailed client statements about their experiences with InvestConsult-HCM.
The questionnaire presented five statements about InvestConsult-HCM, inviting respondents to evaluate their understanding of InvestConsult and its services, its professionalism, its supportive impact on their business, the continuous enhancement of its image, and its prestige within consultancy businesses Participants could respond to each statement by selecting from four available options, providing valuable insights into InvestConsult-HCM’s reputation and effectiveness in the consultancy field.
(1) Totally Disagree; (2) Disagree; (3) Agree; (4) Strongly Agree
Figure 2.4: Statistical record of clients’ statements of InvestConsult-HCM
The Inco's image constantly enhanced
According to the survey results shown in Figure 2.4, most clients recognize InvestConsult as a professional firm and appreciate its positive support for their business, as these statements received scores above 3 However, there is less consensus among clients regarding their understanding of InvestConsult's services, the ongoing enhancement of its image, and its prestige compared to other consultancy businesses, since these aspects scored below 3.
The survey indicates that the vast majority of clients recognize InvestConsult-HCM as a professional company that consistently supports their business needs, emphasizing the importance of maintaining these strengths Nonetheless, it is vital for InvestConsult-HCM to enhance its brand image and reputation within the business community while proactively communicating its full range of services to both existing and prospective clients.
(b) Evaluation of clients on FDI consultancy services of InvestConsult- HCM
The Questionnaire features 12 primary services detailed in Annex A, allowing clients to select the services they have experienced and rate their satisfaction using a four-point scale: Totally Dissatisfied, Dissatisfied, Satisfied, and Totally Satisfied This feedback system enables a comprehensive evaluation of service quality and client satisfaction, helping to identify strengths and areas for improvement.
According to Figure 2.5, only two services provided by InvestConsult-HCM—“Legal services on retainer basis” and “Market research & information providing”—received average scores below 3, indicating client dissatisfaction By contrast, all other services received positive client feedback, reflecting higher satisfaction and approval among those surveyed.
InvestConsult-HCM’s “Business registration certificate for local enterprises” service stands out with the highest client satisfaction, despite local enterprises comprising only 15%-20% of the client base Although the service fees for these clients are set above those of other local consultancy providers, the professional and high-quality support consistently leaves local businesses satisfied Foreign investors also leverage this service to establish nominee enterprises in Vietnam while awaiting market liberalization, particularly in service industries With deep expertise in local regulations, InvestConsult-HCM effectively guides investors on business strategies and risk management, making it a preferred partner for both Vietnamese and foreign clients.
The "Technology transfer agreement, franchising, licensing" service achieved the second highest ranking at InvestConsult Group, reflecting its strong reputation as a traditional offering that has been refined to meet current market demands This evolution highlights InvestConsult-HCM's ability to deliver professional, high-quality solutions that consistently result in high client satisfaction.
- The services which are closely linked to FDI consultancy services, such as