Vietnam Market Entry Strategies Advisory

Despite its increasing attractiveness, Vietnam is a tough place for market entry due to its numerous idiosyncrasies and challenges notably information non-transparency.  Foreign firms planning to enter the Vietnamese market must plan strategically and should seek local help in: i) market understanding; ii) market entry strategy formulization; and iii) on-the-ground support in strategy implementation.

Vietnam market entry generally can be done via indirect and direct channels, with a phase-in option to start with indirect follow-by direct presence. The most common form of indirect entry is the appointment of an agent or distributor. Firms seeking a direct presence in Vietnam (commercial and/or manufacturing operation) should go straight to the FDI license for a subsidiary to be incorporated under Vietnamese laws.

A critical task in market entry strategizing is the pro-and-con analysis that would typically include the weighing, scoring and ranking of various market entry options (strategic choices) to arrive at workable recommendations enhance the client’s decision-making process.