Vietnam is one of the fastest growing markets in the world. PWC expects an average annual GDP growth rate of 5.1% until 2050. This growth is mainly attributed to the positive development of the local manufacturing sector. These developments lead to numerous opportunities for international companies in sales and purchasing.
Procurement:
Low wages, positive legal conditions and an advantageous geographic location let Vietnam become a workbench for the markets in East Asia and worldwide. Local manufacturers have become an attractive alternative to Chinese suppliers, especially in metal processing, electronics and textile.
Distribution:
Vietnam’s manufacturing industry has a high demand for machinery, equipment as well as other related products and services. Moreover, the ongoing industrialization process of the country creates an increasingly wealthy middle class, which appreciates German consumer goods. Because of rising wages the building sector is also booming. Demand of construction above and below ground for high-quality building materials and services are soaring.
Challenges in establishing business relationships in Vietnam
International companies usually do face two obstacles: Firstly, finding potential business partners through the internet is difficult because websites of local companies are often non-existent, provide insufficient information or are only available in Vietnamese language.
Secondly, even if data of local companies is available, contacting them constitutes an additional challenge. When calling Vietnamese companies in English, foreigners will often be turned away; e-mails usually remain unanswered. We are able to bypass these entry barriers and support you with an individualized business partner search.
Process of business partner search
Step 1: Finding potential partners
Our Vietnamese industry experts research potential partners based on predefined criteria. This process results in a longlist with enterprise names, address and standard contact data.
Step 2: Approach and evaluation of potential business partners
The long-listed companies are contacted via phone. The direct approach conducted by our Vietnamese staff and our good reputation in Vietnam are working as a “door opener” for you. We introduce your company and your partnership intentions to the long-listed enterprises. Afterwards, we evaluate their ability to cooperate and their interest into a cooperation with you. The result will be a final report, in which we introduce the interested and available partners with comprehensive company profiles and the findings of our evaluation.
Step 3: Travel planning and accompaniment during partner visits in Vietnam
As in many other Asian countries, the personal connection with local businesses plays an important role in Vietnam. Therefore, personal meetings and site visits with potential partners are highly recommended before establishing business relationships. This especially applies to sourcing projects, in which an on-site assessment of production facilities is essential. In this phase, we will make appointments as well as arrange a travel itinerary and accompany the visit to support you consultancy-wise as well as linguistically and culturally.
Optional: RFQ (sourcing projects)
In some cases, local companies in Vietnam are not competitive due to a lack of “economies of scale” as well as high input material cost. For some products we highly recommend to request offers before you come to Vietnam to visit potential suppliers (and thereby save costs if they prove to be non-competitive). Because local companies often answer to RFQs from non-personal contacts in a sluggish way we can support you with taking over this process.
Company report
By establishing relations with a new business partner, it may make sense to check the financial situation and creditworthiness. In collaboration with external databases we can generate comprehensive company reports. Click here for more information:
Our unique selling points
Vietnamese personnel: Without the knowledge of local language and culture, the entry in the Vietnamese market is usually difficult. Our experienced staff will solve these challenges for you.
25 years of experience: Our organization has been founded in the early 1990s; at a time when Vietnam just opened its economy. Since then we have moved along this country's path to prosperity and supported several hundreds of companies in trade and investment in and out of Vietnam. We would be much obliged to also provide you with the experience we gained through two and half decades of working in this fascinating country.
Market know-how: Certain markets in Vietnam are especially “en vogue”. Within these we were able to build up know-how and networks that you can profit from. These markets are:
- Metal processing (Sourcing)
- Garments (Sales/Sourcing)
- Machinery and Appliances (Sales)
- Automotive (Investment)
