When entrepreneurs consider expanding their businesses in Asia, a popular choice is often China. However, Asia is not only China and ROI does not come only from there. Many western companies are instead entering the so-called “emerging economies”, such as Vietnam, Cambodia, Thailand, and Indonesia. This month we are looking at some key figures of Vietnam.
Growing Economy and Ubanisation
The opening of foreign investments and ownership back in 1987 has enabled the country to have steady and outstanding GDP growth, averaging 5.5% annually. More recently, the implementation of a set of policies to modernise the industry 4.0 (new digital industrial technologies), and the economic free trade agreement between EU and Vietnam signed in June 2019, significantly improved the ease of doing business within the country (currently ranked #70 among 190 economies).
New, different Consumers
Vietnam enjoys a very young population and a growing level of education: about 40% is below the age of 24, and in the past 20 years the percentage of Vietnamese receiving higher education went up from 10 to 30%. More importantly, purchasing power is rapidly growing too,
and the middle-class currently accounts for approximately 33 million people (up from 12 million back in 2012). This young crowd is embracing new technologies, is aware of current trends, is more and more educated on products, and able to distinguish quality. Western brands, especially Italian and French, are perceived as trendy and of high quality, suggesting market opportunities.
As in many emerging markets, although internet penetration is very high and e-commerce is gaining popularity, physical retail stores are still a “must-have” for any brands approaching in the country.
Texere in Vietnam
Having the right partners is key when choosing to adventure in foreign markets. Although Vietnam’s retail sector holds the potential for growth, competition is high and finding, negotiating and establishing a long term relationship with local distributors, can be very challenging.
Texere has been operating in the region since 2013, and through this time we were able to understand the markets and establish important cooperations across the Asian continent. Our acquired knowledge can be fundamental for businesses that are new to this region.
Here are two great examples of our past activities in Vietnam:
In 2018, we organised a very successful workshop with our old partner Moroso and brought together local young designers and gave the opportunity to learn about fabrics through the upholstery of miniature models of Paper Planes armchair. Find out more
Whether you are looking for more market information or wish to test your brand in a specific region, get in touch with us today for a free consultation: firstname.lastname@example.org
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