Netflix Inc, the US-based streaming service, is reportedly preparing to open an office in Vietnam, according to sources.
This move would make Netflix the first major US tech firm to establish a direct presence in the Southeast Asian country of 100 million people. Despite strict internet regulations, Vietnam’s rapidly growing middle class has made it an increasingly attractive market for technology companies.
Netflix’s interest in Vietnam follows years of negotiations with authorities, during which the company conducted a comprehensive risk assessment of the country’s security and political risks, as well as the handling of user data and sensitive content.
While Netflix has declined to comment on its plans, sources indicate that the company is currently in the early stages of planning a local entity in Vietnam.
Sources indicate that the office may launch by late 2023. However, establishing a presence in Vietnam involves going through a prolonged regulatory process, which might result in some delays.
Vietnam’s 2018 cybersecurity law mandates foreign companies earning online revenue in the country to establish a local office, but only ByteDance has complied. Even though Vietnam is a top-10 market for many social media providers, Netflix’s entry may signal a shift and inspire other US tech firms to follow suit.
Vietnam’s digital economy, involving fintech, e-commerce, and online entertainment, is expected to surpass $50 billion in annual transactions by 2025. Therefore, tech giants consider Vietnam a crucial market for expanding their global reach. In 2022, the government collected $78 million in taxes from Google, Meta, Netflix, and TikTok.
Tech giants consider Vietnam a crucial market due to its rapidly expanding middle class in Southeast Asia.