In our last post, we outlined the basics of setting up a business in Vietnam. Today, let’s dive deeper into the crucial first step: market research.
Expanding into a new market like Vietnam presents a world of opportunities, but it also comes with challenges. To navigate this landscape successfully, comprehensive market research is indispensable. It serves as your compass, guiding you through the complexities of the market, assessing the feasibility of your business idea, and informing strategic decisions.

Why Market Research is Essential for Your Vietnam Venture
Market research is the bedrock upon which successful business ventures are built. It provides critical insights into:
Market Viability: Determining if there's a sufficient demand for your product or service in Vietnam.
Local Dynamics: Understanding economic conditions, regulations, and cultural nuances to navigate the market effectively.
Opportunity Identification: Spotting potential market gaps and areas where your business can excel.
Risk Mitigation: Identifying potential challenges and developing strategies to overcome them.
Strategic Decision Making: Informing product positioning, pricing, marketing, and overall business strategy.
The Breadth of Market Research
Market research encompasses a wide range of activities, including:
a.Product/Service Feasibility Analysis
Demand Assessment: Quantifying the potential customer base and understanding their needs.
SWOT Analysis: Evaluating your product or service's strengths, weaknesses, opportunities, and threats.
Competitive Landscape: Identifying direct and indirect competitors and analyzing their offerings.
b.Local Business Environment Analysis
Economic Indicators: Understanding GDP growth, inflation rates, and consumer spending patterns.
Regulatory Framework: Familiarizing yourself with relevant laws, permits, and compliance requirements.
Infrastructure and Logistics: Assessing the availability of essential resources and transportation networks.
c.Customer Segmentation and Profiling
Demographic Analysis: Defining your target audience based on age, gender, income, and location.
Psychographic Analysis: Understanding customer values, lifestyles, and buying behaviors.
Customer Journey Mapping: Visualizing the customer experience to identify touchpoints and opportunities.
d.Competitive Analysis
Competitor Profiling: In-depth analysis of competitors' strengths, weaknesses, target markets, and strategies.
Market Positioning: Understanding how competitors position their offerings and identifying gaps in the market.
Competitive Advantage: Defining your unique selling proposition (USP) to differentiate your business.
Gaining a Competitive Edge
Localization: Tailor your product, marketing, and customer service to the local market.
Partnerships: Collaborate with local businesses to expand your reach and distribution channels.
Marketing: Leverage various online & offline platforms to reach a wider audience and build brand awareness.
Pricing Strategy: Develop a competitive pricing strategy based on value proposition and market conditions.
Customer Experience: Provide exceptional customer experience across their journey with your products/service offerings to build engagement, loyalty and referrals.
Where to Conduct Market Research in Vietnam
There are a number of ways to conduct market research in Vietnam:
Desk Research: The first step should always be desk research, which involves collecting information from secondary sources such as government reports, industry publications, and market research reports, utilizing platforms like Statista, Euromonitor, and the World Bank for global and regional data.
Field Research: Once you have conducted desk research, you can then move on to field research, which involves collecting primary data through direct engagement such as surveys, interviews, and focus groups.
Hire a Market Research Agency: If you do not have the time or resources to conduct market research yourself, you can consider hiring a market research agency to do it for you.
When to Conduct Market Research
Pre-Decision Phase: Start market research during the early planning phase to evaluate the viability of your business idea and refine your strategy based on preliminary findings.
Pre-Launch Phase: Conduct detailed market research once you have a preliminary plan to validate your business model, understand consumer preferences, and gauge competitive dynamics.
Ongoing Research: Continue to gather market intelligence even after establishing your business to stay updated on market trends and adjust your strategies as needed.
CONCLUSION
Market research is an investment that can pay off in the long run by helping you to avoid costly mistakes and ensure the success of your business.
By understanding your target market, competitors, and the broader business environment, you can position your business for success in Vietnam. SOSP Consulting Group is committed to supporting your market entry journey by providing both inhouse market research and/or business matching services based on your requirement.
Contact us today to learn how we can help you unlock the potential of the Vietnamese market.
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