Developing Your Distribution Strategy for Vietnam

Published: December 2018

In this issue of Vietnam briefing magazine, we discuss current trends in Vietnam’s consumer goods market. We highlight opportunities for new market entrants, analyze best fit distribution models for varying stages of commitment, and review the processes required to find an effective local partners to fill gaps in marketing or distribution.

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In this issue:

  • An Introduction to Vietnam’s Consumer Market
  • Distribution Models Compared
  • How to Find a Good Distribution Partner

Consumption in Vietnam is on the rise. The steady flow of foreign investors into the country has, and will continue to, propel economic growth over the coming decade. Increasing economic activity has significantly increased local spending power, with an increase in the expenditure for both urban and rural consumers. In the first nine months of 2018 alone, Vietnam  experienced an 11.3 percent of increased spending. This growth in consumer activity has undoubtedly created openings for businesses to provide new service and product are available.

While opportunities abound for companies catering to Vietnam’s rising middle class, investors often find the Vietnamese market difficult to penetrate. Even the most seasoned companies struggle to understand cultural barriers that affect contract negotiations and enforcement, site difficulties in conducting appropriate partner vetting, and find operations constrained by mindful of time delays when transporting goods due to infrastructure difficulties.

In this issue of Vietnam briefing magazine, we discuss current trends in Vietnam’s consumer goods market. We highlight opportunities for new market entrants, analyze best fit distribution models for varying stages of commitment, and review the processes required to find an effective local partners to fill gaps in marketing or distribution.  

Dezan Shira & Associates has a growing team of pre-market entry specialists throughout Vietnam, providing our clients with years of combined experience assisting foreign enterprises to navigate the nuances of the Vietnamese market and select optimal locations for investment. For questions on how to assess market opportunities, compare options for establishment, or to identify and vet local partners, please contact us at vietnam@dezshira.com.


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