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Market Entry and Investment Advisory

Entering and doing business in new markets especially such emerging markets as Vietnam can be challenging and should be done with thorough study and planning. You should be aware of the new market’s dynamics, laws and regulations, local practices, market structure and potential, demographics and culture, competitive landscape, supply chain, product pricing, etc.

DCPA can help you whichever your goals are: to increase market share (in existing markets), to seek new markets (i.e. Vietnam), to intensify product offerings (in existing markets), to enter a new niche/ segment (in re-strategizing/ re-segmentation strategies), or to introduce new products in new markets, through a thorough portfolio of Vietnam market entry services:

  • Market Research and Analysis
  • Pre-feasibility/ feasibility study
  • Growth Strategies
  • Business Matching/ Partner Search
  • Trade Mission/ Validation Visit
  • Site Identification and Evaluation
  • Corporate Structuring and Establishment
  • Operation Set-up

Please roll down till end of the page for detailed description of these service items.

Market Research and Analysis

DCPA can assist you in obtaining the answers to your questions with our proven research methodologies and workable strategies related to immense business opportunities in emerging or new economies. Our market knowledge, business experience and analytics turn data into insight.

We conduct results-based, tailored market studies with a view to identifying the right market entry and growth strategies for Vietnam. We provide client firms with focused perspectives and analyses to enhance their decision-making, performance and growth.

DCPA understands that success relies on access to relevant and up-to-date information combined with reliable on-the-ground support. Although information appears to be increasingly accessible, it can be really challenging to acquire accurate, relevant and timely business information, notably in Vietnam where information transparency tends to be quite an issue. We possess functional research skills, nationwide coverage with hands-on connections, and practical knowledge of diverse industries to develop comprehensive analysis and provide definitive recommendations.

Typical assignments include:

  • Quick market scan or comprehensive market study
  • Specific market study on consumer/market trends, product opportunities, demand size and growth
  • Customized industry research with focus on supply chain, value chain, supply capacities and sourcing opportunities.
  • Market/industry updates focusing on recent developments or changes
  • Market entry opportunity assessment
  • Growth opportunities assessment
  • Player profiling, partner screening and identification
  • Competitive benchmarking and analysis
  • Identification of investment opportunities

Our work is generally both quantitative and qualitative, based on an optimal combination of desk and field research. Our fact-based and analytical approach leverages a deep understanding of the subject matter and ensures that the real issues are identified and explored.

Pre-feasibility or feasibility study

Once an investment opportunity is identified, DCPA conducts pre-feasibility or feasibility studies in Vietnam to clients to help assess the practicality and/or viability of aa business idea, plan or project and specifically evaluate whether the project could be successful from technical, operational, financial and legal perspectives with economic justification. The services help ensure our client’s investment in the project is worthwhile.

A typical pre-feasibility or feasibility study consists of the following tasks:

  • Establish suitable financial models for the project evaluation
  • Select and measure parameters of the models basing on reliable sources of data, such as capital expenditures (capex), revenue streams and cost structures, annual growth, years of operation, market size and trends, discount rates (WACC), etc.
  • Identify and determine criteria that are suitable for assessing the project’s feasibility;
  • Identify various scenarios with different levels of risks (normally comprising base case, better case and worse case) and accordingly determine the results of financial feasibility (essentially including IRR and payback period) for each scenario

Growth Strategies

Based on relevant market intelligence, DCPA helps identify business opportunities for clients and determine the most appropriate entry strategies for Vietnam market. The task typically includes the pro-and-con analysis of the following entry options:

  • Commercial alliance (i.e. distributorship, product licensing, franchising, contracted manufacturing, other strategic alliances or partnerships)
  • Strategic acquisition of a local established player
  • Greenfield investment (joint venture with a local established player or a wholly-owned FDI company)
  • A combination of one or more of the above options.

The pro-and-con analysis would typically include a weighing, scoring and ranking of options to enhance the client’s decision-making process.

Business Matching/ Partner Search

Once the client has opted for a market entry strategy for Vietnam, we will further assist client in implementation of the strategy, typically starting with business matching.

Partnering with the right people is crucial for any partnership. Our business matching services are designed to help clients find the right partner and understand the market potential and preferences in order to establish strong and profitable long-term business relationships. In a typical assignment such as this, we scan the market, identify and profile relevant partners, typically such as:

  • Joint venture partners
  • Suppliers or exporters
  • Distributors, agents or importers/ buyers
  • Partners to other commercial or strategic alliances, including M&A.

In certain instances, we conduct business matching under the format of trade missions, as described below.

Trade Missions/ Validation Visits

Our trade missions are organized to guide a group of business people, corporate executives or investors with regard to their business objectives in Vietnam. Based on clients’ specific requests, we will hold trade missions with a goal to identify potential business partners and match with the most suitors. The missions provide a unique opportunity for personal interaction to close the gap between the investor (or a business opportunity seeker) and potential opportunities. Such a mission typically includes collective meetings with various potential partners and relevant government authorities and optionally a reception event with all related business partners and industry players, plus one-on-one private meetings between directly interested parties for matching purposes.

Site Identification and Evaluation

DCPA helps clients carry out the business strategy (followed by plans) the client has opted for, starting with identifying candidate locations that fit site criteria we have developed along with clients. We can do this with our strong network with developers of industrial and commercial properties (industrial parks, office buildings, and plazas). These solid relationships also enable our clients to have strong bargaining power in discussions of lease agreements.

Based on various options available for clients, we also help you evaluate using a ranking analysis of the terms and conditions vs. other features.

Corporate Structuring and Establishment

Foreign ownership tends to be a sensitive and complicated matter in many emerging markets, including Vietnam. We will advise on various legal structures and incorporation methods that are legitimately available for you to accomplish your investment goals and assist you in choosing the optional structure and dealing will all the follow-on required procedures and tasks.

DCPA takes care of the corporate establishment procedures to save you time and resources, ensuring that your company is legally established at the required authorities, whether it is a 100% foreign invested or a co-shareholding with local partners. We focus on adding value to clients in difficult cases where some lobbying and/or special structuring capabilities are required, due to regulatory constraints, non-transparency or whatever else reasons. In delivering these services, we may work closely with our partner law firm to ensure the total legitimacy of the entity.

Operation Set-up

Vietnam currently offers international players numerous advantages within the Asian region for their expansion considerations: large and steadily growing population, low labor costs, central geographic location, good logistics conditions, as well as high economic and social stability.

When you consider establishing a new operational unit in Vietnam – whether it is a distribution/commercial operation or manufacturing facility, you may face numerous challenges, given your limited knowledge of the local market’s idiosyncrasies, business environment and mechanisms. Our Operation Set-up services can help you meet your business objectives, budgets and productivity targets and simultaneously provide a platform that allows for continued, sustainable growth in the new market.

We can help you with new operation establishment in the following typical aspects:

  • Legal structure and tax effectiveness considerations
  • Budgeting & financial projections
  • Site/ premise identification, evaluation and selection (distribution center/ warehouse, showroom, office, manufacturing plant); logistics solutions
  • Recruitment of key personnel (country head, functional managers, sales force, etc.)
  • Operating software or system
  • Machinery & equipment, stationery and devices
  • Choices of key contractors such as engineering consultant/designer and EPC contractor
  • Sales/marketing strategy, organization and support
  • Contracting and legal procedures
  • Other operational support (per client’s requests)

 

 

 

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About DCPA

Founded and run by deeply-rooted local professionals living and working many years in major cities of Vietnam, DCPA has built sound local insights and strong connections with local authorities of various fields and levels, domestic business communities and experts working across industry sectors. More about us..

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Ho Chi Minh City Office:

Address

Room 17-16, Tower B,                  Sunrise City View,                                33 Nguyen Huu Tho, Dist. 7, HCMC        

 

Phone

+84 02862 70 44  30

Fax

+84 028 5411 0610

Ha Noi Office:

Address

Level 2, Tower A,                                  Helios Tower, 75 Tam Trinh St.,      Hoang Mai Dist., Ha Noi

Level 4, V+ Business Center, 505 Minh Khai St., Hai Ba Trung Dist., Ha Noi

Phone

+84 02436 227 449

Fax

+84 024 3622 7450