One of the hottest emerging industries since the turn of the century is international trade and it is also ideal as a business start-up for the aspiring entrepreneur. This is especially the case when you look at how the economy in Vietnam has been showing positive growth since the mid-1990's. The basis for the existence of the import/export market lies in the fact that a country possesses an abundance of a particular commodity (i.e. merchandise, resources, etc.) that another country needs.
Import and export becomes a much more lucrative endeavor when you consider the fact that the world is becoming more and more technologically advanced every day. The harsh reality is that international trade is not suited for those adventurous entrepreneurs who are used to "flying by the seat their pants." This is big business when you consider the US market position as the world's largest importer.
This also validates starting an import/export business within Vietnam's economic market.
According to the US Department of Commerce, US imports have exceeded the $1 trillion mark while exports are hovering around $800 billion. Furthermore, America's trade deficit with Vietnam grew over 300% between 2002 and 2007. So it should come as no surprise that this could be a lucrative endeavor for the right individual positioned in the right market at the right time - and to use that familiar cliché, "timing is everything."
Three types of import/export businesses to consider
First and foremost, most individuals fall prey to the misconception that there are only two major players in the international trade arena - namely, exporters and importers. However, the following three are serious variations on this concept and are viable businesses for the industrious entrepreneur to consider:
Export management company (EMC) - this type of company handles the export operations of domestic companies that want to sell their products globally but don't possess the knowledge of the business.
Export trading company (ETC) - identifies what the types of products that foreign buyers want to purchase and then searches for domestic sources willing to export these needed products.
Import/export merchants - individuals who are free agent trade entrepreneurs that do not specialize in any one specific industry or product line and services directly from domestic or a foreign manufacturers in order to pack, ship, and resell them on their own.
