Netflix is mulling over establishing an office in Vietnam after conducting a risk evaluation following years of negotiations with authorities, making the streaming giant the first US-headquartered tech behemoth to maintain an official presence in the country.
Netflix’s proposed office in Vietnam could officially open in late 2023, an inside source revealed.
“The company is in the early stage of planning for a local entity in Vietnam after completing an assessment in late 2022 that evaluated the security and political risks of operating an office in the country, including the handling of user data and sensitive content,” Reuters reported.
In December last year, Vishal Sarin, Netflix vice president, met with representatives of the Ministry of Planning and Investment's Office, to discuss the opening of a representative office in Vietnam.
"Netflix currently does not have a representative office in Vietnam but has gradually invested in Vietnam by licensing more than 200 local movies, hiring Vietnamese partners to dub and make subtitles for these movies," said Vishal.
According to a report by Google, Temasek Holdings and Bain & Company, Vietnam's digital economy is said to boast the fastest growth in Southeast Asia, with gross merchandise value rising 28 per cent on-year to $23 billion in 2022. This figure illustrates the country’s vast potential and the main reason for Netflix's desire to capitalise on this opportunity.
Since March 2022, when cross-border businesses in Vietnam started to declare and pay taxes, local authorities have collected more around $145 million from 42 companies. Of these, there are six major foreign corporations comprising Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple, accounting for 90 per cent of the market share in revenue of e-commerce services and cross-border digital platforms in the country.
| ||Netflix considering opening office in Vietnam |
Netflix leaders met with representatives of Vietnam's Ministry of Planning and Investment (MPI) to discuss conditions for establishing a wholly-foreign-owned enterprise in Vietnam.
| ||Vietnam fixed on clawing back e-commerce taxes |
E-commerce tax from businesses and sellers will continue to be collected in 2023 as part of ongoing efforts to ensure cross-border giants declare profits and pay their taxes.