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 inconsistency or incompleteness.  Foreign firms planning to enter the Vietnamese market should plan strategically and 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 operations) 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 weighing, scoring and ranking various market entry options (strategic choices) to arrive at workable recommendations to enhance the client’s decision-making process.