Developing Your Distribution Strategy for Vietnam

2 Introduction ALBERTO VETTORETTI Partner Dezan Shira & Associates Consumption inVietnam is on the rise.The steady flowof 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 toVietnam’s risingmiddle 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, cite difficulties in conducting appropriate partner vetting, and find operations constrained by time delays when transporting goods due to infrastructure difficulties. In this issue of Vietnam briefing magazine, we discuss current trends in Vietnam’s consumer goodsmarket.We highlight opportunities for newmarket 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 theVietnamesemarket 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 a t vietnam@dezshira.com. With kind regards, Alberto Vettoretti Credits Publisher / Alberto Vettoretti Managing Editor / Adam Pitman Editor / Maxfield Brown, Koushan Das, Kyssha Mah Design / Belén Rodríguez Reference Vietnam Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2018 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.indonesiabriefing.com www.vietnam-briefing.com www.china-briefing.com