When David and Goliath befriend: the Partnership between a Vietnamese consulting firm and a top-tier global MNC
Our client, a technology-enabled global business services company, is a subsidiary of a California-based Fortune Global 500 corporation (Top 200). Founded in the 1970s, through a series of large mergers and acquisitions, the company has grown to become a multi-national giant present in over 125 geographies and employing over 200,000 headcounts worldwide. As a leader in the BPO industry, the company places its focus on enhancing customer engagement and improving business performance for the world’s best brands.
In early 2017, our client decided to venture into Vietnam, and later to Indonesia and Thailand, through the establishment of a local entity under the shareholding and directorship of a local partner, with aims towards acquiring the entity using a holding structure in the Netherlands later on. This is a strategic move for them, as though Greater China and Hong Kong have always been an important part of its global footprint, Southeast Asia was also presenting tremendous opportunities as a region of the tomorrows.
Previously, our client’s presence in the region was through a strong Asia-Pacific call center and BPO unit based in the Philippines, yet from a business perspective, Vietnam seemed like the perfect fit for expansion. With its abundance in labor force suitable for call center model and a high-growth consumer market that is learning to buy online, use credit, and generally willing to spend more and more on consumption purchases, Vietnam holds good opportunities to acquire key clients with massive numbers of transactions.
However, to expand into such a complex and multi-faceted market, our client needed a guiding hand from experienced consultants who could deliver with responsiveness, in-depth local expertise and high quality of advice on a par with the demands of a Fortune Global 500. After 06 months of extensive due diligence by our client’s global leaders and regional headquarters in India, Viettonkin had been appointed as the consulting firm responsible for all matters related to legal, accounting and payroll aspects of their expansion to Vietnam and Indonesia. Viettonkin conducted the legal procedures of establishing their local office in Vietnam (including the appointment of a local director) then orchestrated the acquisition process (which took 04-05 months as call center services were restricted for foreign investors) to turn the local Vietnam office into a 100% foreign owned company under their global holdings. A similar structure was later executed in Indonesia, and Viettonkin Indonesia’s legal team was responsible for the incorporation of their Indonesia office based in Jakarta.
Nearly a year from the establishment of the Vietnam office, the company has found that its decision to enter Vietnam was more than satisfactory. The Vietnam office had acquired key retainerships with the largest banks, credit institutions, e-commerce and ride-hailing companies in Vietnam. In Indonesia, the same success is gradually taking place.
Building on such foundation, our client sought Viettonkin’s support in establishing its second entity in Vietnam which specialized in debt management and collection services (using call center technology). Debt collections are highly regulated in Vietnam and especially towards foreign investors, so Viettonkin was pro-actively representing them in dealing with a wide range of local stakeholders, including the local police department and others, in order to ensure the success of the company incorporation and acquisition process. Through such efforts, the second entity is already up and running. We are in talks to continue with a number of future business projects within and outside of Vietnam. Viettonkin’s top management also frequently travels to the regional headquarters in India to meet and discuss with the regional and global leaders regarding the operations and future plans in Southeast Asia.
After a few years of collaboration, Viettonkin and the MNC are formulating a comprehensive strategic partnership in which Viettonkin shall represent them in all ASEAN countries with an aim towards developing key relationships with large corporations and growing their business in the region. This is a key highlight in the ever-growing relationship between Viettonkin and its client, proving that strong integration and tight-knit synergies between a medium-sized firm in Vietnam and a top-tier global MNC are absolutely possible.