Market entry strategy for exports to Vietnam

If Vietnam is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in Vietnam

Vietnam, in Southeast Asia has a population at around 100 million. Vietnam has experienced rapid economic growth in recent decades, becoming an emerging market in the region.

With a GDP per capita of about $3,500 USD in 2023, Vietnam’s economy is driven by agriculture, manufacturing, and services. Rice is a key agricultural product, and Vietnam is one of the world’s leading rice exporters. Manufacturing, particularly in textiles, footwear, and electronics, has seen significant growth. Tourism is also a growing sector, with its rich cultural heritage and natural attractions.

Vietnam imports machinery, refined petroleum, and electronic equipment, essential for its industrial and consumer sectors.

Important cities include Hanoi, the capital with a blend of Eastern and Western cultures; Ho Chi Minh City (formerly Saigon), the economic powerhouse; and Da Nang, known for its beaches and port.

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

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Entering the market in Vietnam in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.