The economy of Vietnam is rapidly growing and with all these developments, you might want to hedge into this market. There are a lot of US companies preferring to outsource manufacturing to Vietnam and if you’re thinking of following the same suit or launching a new product or service, there are crucial aspects you need to consider.
Besides the logistics of hedging into this country’s market, you should carefully consider local circumstances and how to align your business model with them. To help you get started on this, here are 5 things to consider before entering the marketing industry in Vietnam.
Communicating and negotiating with local stakeholders
Market entry in Vietnam should be based on building strong relationships with local stakeholders that will build your brand. There are many cases where you should build relationships with local stakeholders, depending on the industry you’re in. If you’re in the business of manufacturing products and would like to outsource Vietnam’s services, you should build relationships with local manufacturers.
A popular international student assignment help states that if you would like to establish a B2C business, roles such as sales and marketing might be better suited with local skilled individuals. In any case, certain business etiquette principles apply when communicating and negotiating with local stakeholders.
For example, since they’re not native English speakers, they might come off blunt at times. Perhaps they might also not fully understand certain jargon and euphemisms you are used to.
That is why, when communicating with Vietnamese stakeholders, be forthright, and use simple terms. Remember not to be offended easily by questions or phrases said by local stakeholders.
Also, telecommunications is not the best communication method in negotiations and meetings. Therefore, try by all means to have a face-to-face presence to make the other party feel dignified.
As mentioned in business writing services reviews, another important aspect of communicating with Vietnamese stakeholders is to avoid cold-calling. Although this might work in Western countries, in Vietnam, it can lead to catastrophic results. Try to get an acquaintance to introduce you before laying out a business proposition. This will have better effects than cold-calling.
Establishing a representative office
A lot of first-time entrants of the Vietnam market have found establishing a representative office very rewarding. Although establishing this office does not allow them to trade freely or engage in profit-generating activities, it can help get a lay of the land. You can establish a representative office to conduct in-depth market research to determine how and when to enter.
The benefits of having an office like this one are that you are exempt from paying taxes and other obligations determined by the Vietnamese Ministry for Planning and Investment. At the same time, you will be building a positive company presence in the country, which builds up anticipation for your launch.
You can facilitate meetings at the representative office, which builds a professional image to other stakeholders. Establishing a representative office does not have a lengthy licensing process and it has very limited bureaucratic procedures.
If you are looking into hedging in the Vietnamese market for the first time, this is a great stepping stone. It is relatively low-cost and helps you gain a much better understanding of this market. Consider an investment of a minimum of $10,000 when establishing a representative office.
Marking your presence by creating a relevant mobile app
If you’re establishing a B2C business model, consider developing an app that will connect you and your clients. Mobile devices are the most common devices used by the population. Therefore, to create a positive footprint, develop an app, and publish it on Google Playstore.
This market is huge because a lot of Vietnamese people trust and download apps found on Playstore. Do not try to save face and create any app but ensure that it complements the business practices you’ are trying to hedge into. Another important aspect is to make it useful and relevant to local populations.
That might mean trying to westernize it less and make it more relevant for Southeast Asia markets. Creating an innovative app that adds value to consumers will improve their perception of your business. Keep in mind that internet infrastructure is still developmental in Vietnam.
Ryan Nortje, who launched a nursing essay writing service app in East Asian market, has an interesting point to share. As per him, you should consider an app that can run offline and that does not require fast internet speeds. These two aspects are major contributing factors to developing an amazing user experience for the Vietnam market. Also, make it user-friendly with design elements that allow your app to be used by people who are not technically inclined.
Considering e-commerce business models in Vietnam
E-commerce is a sector with huge growth potential in Vietnam but there are some special considerations to make. When building an e-commerce business model in this country to keep in mind the reservations locals might have.
This is not a common method of trading and that is why you should try by all means to cater to their concerns. For example, locals might be used to fitting an item, feeling its texture before making a purchase. In e-commerce, they do not have this privilege so try to meet them halfway.
For example, by explicitly showing the return policies you have. Another area of concern the Vietnam market has is the security of the transaction. You need to implement a secure and popular payment gateway that locals are accustomed to. In addition, you might also consider having cash on delivery payment system to build trust with customers.
Try to brainstorm other concerns that the market has such as purchasing items from certain countries like China. Be careful of even the little things because they go a long way into influencing the purchase decisions of Vietnamese citizens.
Fundamentals of digital marketing in Vietnam
Digital marketing is very important in any country or market because of its widespread reach. In Vietnam, there are a lot of digital marketing agencies and to succeed, they have directed much effort into social media campaigns. They have invested a lot of money into social advertisements and these campaigns have derived positive Return on Investment for companies.
Video adverts are one of the most effective strategies and they are paired with social media ad campaigns. The most common social media channels that are used for marketing purposes in Vietnam include Facebook, Instagram, YouTube, and Zalo.
All of these channels are used mostly for brand awareness and advertising promotions. They are also used to manage customer relationships. You can include social media marketing at the very top of your sales funnel because this channel can be used to drive traffic to a website or app.
Either way, this marketing campaign is the dominant one that you must invest much time and capital to. This applies especially to e-commerce business models that require more traffic to their website.
The bottom line
Entering the Vietnamese market varies depending on your industry and chosen niche. If you’re specializing in B2C transactions, the digital marketing strategy you choose must have a perfect social media campaign. Also, if you are launching an e-commerce business, try to identify and mitigate any concerns the local market might have. For example, mitigating skeptical perceptions of paying upfront by using cash on delivery system can be very effective and lead to positive growth.
Words by Michael Gorman, an experienced academic writer who has a glorious track record of working with the best essay writing websites and is currently working with an MBA essay writing service. His recently published work is on essay writing service reviews has been highly praised by the industry experts. He is currently writing a book on technology in college education and plans to release it around December.
Michael Gorman, the contributor of Vietnam Insider