Former French Ambassador and his decision to become an entrepreneur in Vietnam: "In 10 years, you will have businesses capable of reaching the world like Korea"

Former French Ambassador to Vietnam Jean-Noel Poirier arrived at our meeting place by motorbike. He parked his motorbike and asked the restaurant owner if he needed to lock his neck like a “true Hanoian ”. After completing his term as French Ambassador to Vietnam, Mr. Poirier continued to stay in the S-shaped strip of land, working as a businessman because he felt that his “term” in Vietnam had not ended.

What is the difference between being a businessman and being a diplomat ? Very different. A diplomat is the face of a state, a nation, I have to do my best to introduce the strengths of my country. But I don’t need to sell any products. Now I have to “sell myself” (laughs). I have to convince companies that trust me to use my services and try my best to prove to them my abilities. Another difference is that when I founded the company, I had to do everything by myself, without a team like at the Embassy. I started from zero: from finding employees, building a team, thinking about the operating model, to doing procedures… There were up to 100 problems to solve. So I had to “learn more” about Vietnam, every day I learned something new about a field that I had never worked in for the past 30 years. And because every day is something new, I'm still very excited and eager.

Why did you decide to stay in Vietnam to “start a business”? There are many reasons why I decided to stay in Vietnam instead of becoming a businessman in France. First of all, I love Vietnam, I love Hanoi. I feel a connection with the Vietnamese people. I always feel the liveliness in every corner of the street. People live on the sidewalk: playing chess, cooking, cutting hair, selling goods, even taking a nap on the sidewalk... Hanoi is very busy, vibrant but still simple. This makes me excited, reminds me of Paris when I was young. In the 60s and 70s of the last century, Paris had many similar beauties to Hanoi now. In the simple neighborhood where I lived in Paris, there were many workshops making wooden furniture, tables, chairs, and interiors, similar to the area where I live now in Hanoi. There were many iron shops along the street and people cut iron right on the sidewalk. Paris is no longer like that because everything is made in China and Vietnam. Paris is now a very luxurious city. It can be said that Paris is beautiful, but a more beautiful place does not mean more charming. Paris is now attractive to tourists but sad. For me, living in Vietnam is much more interesting. I also like Hanoi because it has French culture, it has the "taste" of old France. Finally, Vietnamese people are very beautiful. I often say that in Europe, Italians are the most beautiful, Italian football players are very handsome. And in Asia, Vietnamese people are the most beautiful. They pay attention to dressing, care about elegance. Besides, compared to other Asian communities, Vietnamese people are quite friendly. Vietnamese people are very open. Any foreigner who respects Vietnamese culture can become friends with Vietnamese people.

Apart from cultural factors, as a businessman, what do you find attractive about the Vietnamese market? Vietnam's economy is growing very quickly, so there are many opportunities in all fields. For the past 15 years, Vietnam has always been among the countries with the fastest GDP growth rate. Since the Doi Moi process, Vietnam has developed sustainably, stably, very positively and has a lot of potential. Working in Vietnam, I can see a bright future. To me, Vietnam has many factors that attract investors. It is not by chance that nearly 30 billion USD of FDI capital is poured into Vietnam every year. I see that the labor force in Vietnam is very talented and hard-working, while the average salary of workers is still cheap when compared to other countries in the region. In particular, in 30 years of innovation and development, Vietnam has had a stable socio-economic environment while many Asian countries are facing population aging. Western countries face major social conflicts. This is a point that helps investors feel secure when building long-term strategies in Vietnam. In addition, the Vietnamese government is also very interested in foreign investors and creates the best possible conditions.

Finally, about human resources. 20 years ago, when I started my duties as Consul General in Ho Chi Minh City, Vietnam did not have many personnel with enough experience working with foreign companies. Now it is completely different. Vietnamese people today are very capable. They are not only fluent in English but also understand the international business environment as well as grasp all the needs and standards of foreign enterprises. This also partly shows that Vietnam'seducation is increasingly developing. For your part, how do you think you will play a bridging role to attract more FDI enterprises, so that they can see the attractiveness of the Vietnamese market and be confident in their investment decisions? From personal experience, I have found that most businesses always face difficulties when entering a new market. Those challenges come from cultural differences or inconsistent operating methods. And Vietnam is no exception. In my current role, I will explain why the company is facing this problem and provide them with the optimal solution. Normally, due to limited market research and lack of practical experience, foreign companies often encounter legal barriers and have difficulty understanding current regulations to establish a business in Vietnam. I also realize that in Vietnam, every day, new companies are established, so the level of competition is very high. This is a good sign to prove that Vietnam is constantly developing and the people themselves want to "reach out to the ocean". And that will be the time for me to become a bridge to make the investment process in Vietnam go more smoothly.

In fact, I always share with international friends, especially French businessmen, that Vietnam is a potential market with great potential for development. I am also convincing a French company to return to invest in this beautiful country. The Vietnamese government has also had systematic and effective policies to fight the Covid-19 pandemic. This has helped the national economy recover quickly and is a favorable condition for foreign investors.

As you just shared, in France now, goods are mainly produced in China and Vietnam. After Covid, many people also talk about diversifying production activities and Vietnam has become a destination chosen by many businesses. What do you think about this? Furthermore, what actions should Vietnam take to best take advantage of this wave? While the wave of foreign businesses withdrawing from China is taking place, Vietnam has become the top choice for these businesses. Currently, many companies are starting to build more headquarters in Vietnam and expand production activities. This is a good trend and a positive signal for Vietnam. However, along with development, I think there are still a few issues that need to be improved. I think Vietnam needs to pay attention to environmental protection for sustainable development, improve infrastructure... Vietnam, like some other developing countries, is facing the contradiction between rapid and sustainable development. For example, in the problem of waste and wastewater treatment, Western companies often use the best technology, while Vietnam will have to face the problem of how to optimize costs. Besides, I think production activities in Vietnam are still importing raw components from abroad, assembling domestically and then exporting. This limits added value. One reason is probably that Vietnam does not have large companies or domestic corporations with great potential like the chaebols of Korea. But this is only a matter of time. I believe that in about 5-15 years, Vietnam will have businesses capable of reaching the world . I believe in Vietnam's development potential. Vietnam has many favorable conditions. Vietnamese people are open, not afraid to communicate, work with foreigners and easily create relationships. This is a strength compared to people of other countries in the region.

You once said that French businesses see Vietnam in the future as being like Korea. Can you elaborate? Yes, I said so. And I hope French businessmen see this. If you look at the structure of the economy, the proportion of industry, agriculture , services, you will see similarities between Vietnam and Korea. When I was a student, Korea had decades of trade deficits. They imported machinery, raw materials to export. But then this balance quickly changed. Now Korea is one of the top 5 exporting countries in the world. The development is spread across all sectors. And the same trend is happening in Vietnam. The trade balance, quickly turned from deficit to surplus. Even during the Covid period, the situation is still very positive. If Vietnam follows the right path according to the Free Trade Agreements that Vietnam has signed, export activities will increasingly boom, along with extremely positive prospects for the economic sector. In addition, Vietnam is currently in a prosperous and strongly growing Asian region. This is very beneficial, giving your country a great opportunity to become a leading economy in the region. What can Vietnam do to become more attractive to foreign investors? I think it is softpower. Vietnam still lacks influence through cinema, literature, music , etc. Korea is the number 1 example in Asia on this issue. They have done it with TV dramas, music, fashion and contributed significantly to the economy. I think this is also a way to help Vietnam promote its image and become more widely known. Article: Lan Huong - Thuy Bao Graphics: Hai An

Market Pulse