Analyzing the Market Research Industry in Vietnam

Market Research Landscape in Vietnam

The market research industry in Vietnam has witnessed significant growth over the years, making it an essential component for businesses eyeing Vietnam as their next strategic destination. The value of the industry has increased from around 2 million USD in 1994 to approximately 25 million USD in 2009, according to an ESOMAR report (Asia Research). This growth can be attributed to various factors that drive the demand for market research services in the country.

Growth of Market Research Industry

The market research industry in Vietnam has experienced a consistent annual growth rate of over 15% in recent years (Asia Research). This growth can be attributed to several factors:

1. Foreign Direct Investment (FDI) Shifts: Vietnam’s positive growth prospects have attracted significant FDI shifts from multinational corporations, leading to increased demand for market research services (Asia Research).
2. Expanding Business Environment: As Vietnam’s business environment continues to evolve, both local and international companies are recognizing the importance of market research in understanding consumer behavior, assessing market viability, and making informed business decisions.
3. Rapidly Evolving Consumer Landscape: With a growing middle class and changing consumer preferences, businesses in Vietnam require accurate market insights to develop effective marketing strategies and meet customer demands.
4. Diverse Industry Sectors: Vietnam’s diverse industry sectors, including manufacturing, information technology, and agriculture, present immense opportunities for market research companies to provide specialized research services tailored to specific sectors.

Key Factors Driving Market Research in Vietnam

Market research plays a crucial role in facilitating business success in Vietnam. Some key factors driving the demand for market research services in the country include:

1. Assessing Market Viability: Market research helps businesses assess the viability of the Vietnamese market by providing valuable insights into consumer behavior, market trends, and competition. This information allows businesses to make informed decisions regarding market entry strategies.
2. Understanding Audience Demands: Proper market research enables businesses to understand the demands and preferences of the Vietnamese audience. By analyzing consumer behavior and preferences, businesses can tailor their products, services, and marketing messages to effectively target the local market.
3. Timing Market Entry: Market research assists businesses in determining the right timing for market entry in Vietnam. By identifying market gaps and analyzing market trends, businesses can strategically plan their entry to maximize opportunities and minimize risks.
4. Establishing Marketing Messages: Through market research, businesses can gain insights into the cultural nuances, values, and beliefs of the Vietnamese population. This information helps in developing marketing messages that resonate with the target audience, leading to more impactful and successful marketing campaigns.

In Vietnam, several market research companies, such as IMS, GfK, Nielsen, and TNS, provide a wide range of qualitative and quantitative research services, catering to various industries including healthcare, household appliances, and retail audit. These companies offer valuable market intelligence and actionable insights to support businesses in their decision-making processes.

By leveraging the expertise of market research companies in Vietnam, businesses can gain a competitive edge in the dynamic Vietnamese market and increase their chances of success.

Business Opportunities in Vietnam

Vietnam has emerged as an attractive destination for businesses, offering a range of advantages and opportunities. With its growing economy, diverse market, and favorable business environment, Vietnam presents numerous benefits for companies looking to operate in the country.

Advantages of Operating in Vietnam

One of the key advantages of operating in Vietnam is its cost-effectiveness compared to other countries in the region. According to Vietnam Briefing, Vietnam has become a highly effective alternative for relocation in Southeast Asia, attracting businesses aiming to reduce costs and diversify supply chains. The country offers competitive labor costs, affordable real estate, and a favorable tax regime, making it an attractive option for small and medium-sized enterprises (SMEs) seeking cost savings in their operations.

Vietnam also benefits from a high degree of regional diversity, which provides unique competitive advantages for different industries and types of businesses. The North, Center, and South regions of Vietnam each offer distinct benefits. The Ho Chi Minh City area, for example, provides a vibrant commercial center with a deep and diversified supply chain, while the Center of the country offers unmatched cost advantages (Vietnam Briefing). This regional diversity allows businesses to tap into different markets and tailor their operations to specific regional demands.

Furthermore, Vietnam’s pursuit of foreign investment, competitive costs, free trade agreements, and liberal investment environment have made it an ideal location for businesses seeking to reduce costs and diversify their supply chains (Vietnam Briefing). The country offers a solid business climate, a vision for its future, and a continuously improving business ecosystem. Additionally, Vietnam has a robust free trade network, with major agreements in place with countries such as the EU, RCEP, CPTPP, and others (Vietnam Briefing). This allows businesses operating in Vietnam to benefit from preferential trade terms and access to a wide range of markets.

Regional Diversity and Competitive Advantages

Vietnam’s economy has transitioned from a primarily agrarian economy to a more industrial and service-oriented one, with key sectors driving growth. These sectors include manufacturing (electronics and textiles), real estate, retail, and an emerging technology startup ecosystem (Market Research Vietnam). Each region of Vietnam offers unique competitive advantages for businesses operating within specific industries.

For example, the manufacturing and export sectors thrive in Vietnam. The country’s skilled workforce, cost advantages, and strategic location make it an appealing destination for companies looking to establish manufacturing facilities and export their products to global markets.

Another emerging sector in Vietnam is information technology and e-commerce. Vietnam is experiencing a digital transformation, with a surge in internet penetration and mobile usage, leading to significant growth in e-commerce and online services. This growth has reshaped how Vietnamese consumers shop and consume media, presenting opportunities for businesses in the digital space.

Additionally, Vietnam’s agriculture sector and traditional exports continue to play a significant role in the country’s economy. Vietnam is known for its agricultural products such as rice, coffee, and seafood, which are in high demand globally. Expanding agricultural production and exploring new markets for traditional exports can create business opportunities in this sector.

By capitalizing on the advantages of operating in Vietnam and understanding the diverse regional opportunities, businesses can tap into the country’s growing market and contribute to its economic development. Conducting market research, understanding consumer insights, and partnering with local market research companies in Vietnam will provide valuable support in identifying and seizing the business opportunities available in this dynamic market. To learn more about market research companies in Vietnam and the services they offer, visit our article on market research companies in Vietnam.

Emerging Sectors in Vietnam

Vietnam’s economy has been experiencing significant growth and transformation, leading to the emergence of various sectors that present promising business opportunities. In this section, we will explore three key sectors that are particularly noteworthy: the manufacturing and export sectors, information technology and e-commerce growth, and agriculture and traditional exports.

Manufacturing and Export Sectors

Vietnam has established itself as a global manufacturing hub, attracting industries such as textiles, garments, and electronics. The country’s competitive labor costs, strategic location, and improving infrastructure have contributed to its appeal as a manufacturing destination (SIS International Research & Strategy). With a skilled workforce and a focus on quality, Vietnam has become an attractive option for businesses looking to diversify their manufacturing operations.

The manufacturing sector in Vietnam has seen steady growth, driven by both domestic demand and export-oriented production. The government’s efforts to improve business regulations and promote foreign investment have further supported this sector’s expansion. As a result, Vietnam has become a top exporter of various products, including textiles, garments, footwear, and electronics.

Information Technology and E-commerce Growth

Vietnam’s information technology (IT) sector has been flourishing in recent years. The country boasts a young and tech-savvy population, which has fueled the growth of the IT industry. With a focus on software development, outsourcing, and digital services, Vietnam has emerged as a competitive player in the global IT market. The government has also been actively promoting digital transformation and supporting startups in the tech sector.

E-commerce is another area that has experienced rapid growth in Vietnam. With increasing internet penetration and a rising middle class, online shopping has gained popularity among Vietnamese consumers. E-commerce platforms and online marketplaces have emerged, providing opportunities for both local and international businesses to tap into the Vietnamese market. This growth in e-commerce has also driven demand for logistics and delivery services, creating additional business opportunities.

Agriculture and Traditional Exports

Agriculture has long been a significant sector in Vietnam’s economy. The country is one of the world’s leading exporters of products such as coffee, rice, and seafood. Vietnam’s fertile land, favorable climate, and agricultural expertise have contributed to its success in this sector. Despite the growth of other industries, agriculture remains a vital part of Vietnam’s economy, providing employment and contributing to the country’s export earnings.

Vietnam’s traditional exports, including coffee, rice, and seafood, continue to be highly sought after in international markets. The government has been supporting the development of modern agricultural practices and promoting sustainable farming methods to ensure the sector’s long-term growth. Additionally, there are increasing opportunities for value-added agricultural products and organic produce, catering to the growing demand for high-quality and sustainable food products globally.

As Vietnam’s economy continues to evolve, these emerging sectors offer exciting prospects for businesses. Whether it’s manufacturing and exports, IT and e-commerce, or agriculture and traditional exports, each sector presents unique opportunities for both local and international players. By understanding the market landscape and consumer trends within these sectors, businesses can position themselves strategically to capitalize on Vietnam’s economic growth.

Data Market in Vietnam

The data market in Vietnam is experiencing significant growth and transformation, driven by the country’s comprehensive digital transformation efforts and the rise of the ‘fourth industrial revolution’. Let’s explore the market size and growth projections, subsectors and competition, as well as government initiatives in artificial intelligence.

Market Size and Growth Projections

In 2020, Vietnam’s data market was valued at US$858 million. According to projections, the market is expected to reach US$1.82 billion by 2023, with a compound annual growth rate (CAGR) of 5.32 percent for the period of 2023-2027 (Vietnam Briefing). This growth reflects the increasing importance of data-driven solutions and technologies in the Vietnamese market.

Foreign players currently dominate the market, holding an estimated 70-80 percent market share. Key domestic players such as Viettel, VNPT, and FPT, among others, account for the remaining 20 percent of the market (Vietnam Briefing). The entry of foreign companies has contributed to the overall competitiveness and development of the data market in Vietnam.

Subsectors and Competition

Within Vietnam’s data market, two main subsectors with high levels of competition are cloud computing and artificial intelligence (AI). These areas have experienced significant growth and adoption in various industries, including banking and finance, e-commerce, and telecommunications. As companies increasingly rely on data-driven insights and digital solutions, the demand for cloud computing and AI services continues to grow.

Competition in the data market is fragmented, with no dominant company but rather a cluster of smaller firms. Major players in the server and storage system subsector include Hewlett Packard Enterprise (HPE), Dell, and Cisco. In the data security market, players such as FPT, SAP Asia Vietnam, IBM Vietnam, Viettel Cyber Security Company, and Microsoft offer data encryption, user authentication, and other security measures (Vietnam Briefing). This diverse competitive landscape presents opportunities for both domestic and foreign companies to carve out a share of the market.

Government Initiatives in Artificial Intelligence

Recognizing the importance of artificial intelligence (AI) in driving technological advancements, Vietnam’s government has issued Decision No. 127 on the National Strategy for Research, Development, and Application of Artificial Intelligence until 2030. The strategy aims to promote AI as a crucial field for development in the country, with the aspiration of Vietnam being among the top four countries in ASEAN in terms of AI applications by 2030 (Vietnam Briefing).

In addition, Decision No. 677 outlines a scheme for developing Vietnamese digital knowledge systems, emphasizing the importance of foreign companies with ICT knowledge contributing to information sharing. Companies operating in digital technology sectors can benefit from incentives such as a 10 percent corporate income tax (CIT) rate over 15 years, land rent reduction or exemption, a five percent value-added tax (VAT) rate, and tariff exemption for production inputs over a five-year period (Vietnam Briefing). These government initiatives create a favorable environment for the growth and development of the data market, including AI-related technologies and solutions.

The data market in Vietnam presents numerous opportunities for businesses operating in various sectors. As the market continues to evolve and expand, staying updated on the latest trends, technologies, and government initiatives is crucial for both local and foreign companies looking to capitalize on the growing data-driven economy.

For more information on market research companies in Vietnam, their services, and the importance of market research in Vietnam, refer to our article on market research companies in Vietnam.

Doing Business in Vietnam

When considering doing business in Vietnam, it is important to understand the business environment and investment climate of the country. Vietnam has established itself as a stable and rapidly developing destination for international business and foreign investment. Here we will explore the business environment, ease of doing business ranking, and foreign direct investment trends in Vietnam.

Business Environment and Investment Climate

Vietnam offers a positive business environment with several factors contributing to its attractiveness for business and investment. The country has a stable political system and a consistent track record of high-performing economic and market growth. Its economy is outperforming many other emerging countries of similar scale, making it an attractive destination for businesses looking to expand (Vietnam Briefing).

Vietnam also benefits from an ample workforce of young and skilled laborers, central proximity to East Asia’s top emerging economies, and a relatively open foreign direct investment (FDI) environment. The government has taken steps to create a business-friendly environment by implementing reforms and streamlining administrative procedures, making it easier for businesses to operate in the country.

Ease of Doing Business Ranking

According to the World Bank’s Doing Business 2020 report, Vietnam ranks 70th among 190 economies for ease of doing business. This ranking takes into account various factors such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency (Vietnam Briefing).

The government of Vietnam has been actively working to improve the ease of doing business in the country. Efforts have been made to simplify administrative procedures, enhance transparency, and create a more business-friendly environment. These improvements contribute to the overall ease of doing business in Vietnam, attracting both local and foreign investors.

Foreign Direct Investment Trends

Vietnam continues to be a magnet for attracting foreign direct investment (FDI). The country offers a strong FDI environment and has seen significant growth in recent years. In 2021, Vietnam’s FDI exceeded 2% of its GDP, highlighting the confidence of foreign investors in the country’s potential and business climate (Vietnam Briefing).

One of the key factors driving foreign direct investment in Vietnam is its robust free trade network. Vietnam is a signatory to numerous bilateral and multilateral free trade agreements, providing direct trade advantages with countries and regions including Australia, Brunei, Canada, China, EU countries, Japan, Malaysia, Singapore, South Korea, Thailand, the United Kingdom, and more. These agreements open up opportunities for businesses to access a wide range of markets and expand their operations.

As Vietnam’s economy continues to grow and its business ecosystem improves, the country remains an attractive destination for businesses looking to establish a presence in Southeast Asia.

When considering doing business in Vietnam, it is crucial to conduct thorough market research and gather insights to make informed decisions. Market research companies in Vietnam can provide valuable assistance in understanding the local market, consumer preferences, and industry trends. To explore the top market research firms and the services they offer, refer to our article on market research companies in Vietnam.

Market Research Companies in Vietnam

When it comes to conducting market research in Vietnam, there are several reputable market research firms that offer valuable insights and services to businesses. These companies play a crucial role in helping organizations make informed decisions and navigate the dynamic Vietnamese market. Let’s explore some of the top market research firms in Vietnam, the services they offer, and the importance of market research in the country.

Top Market Research Firms

1. Orissa International: Orissa International supports businesses looking to expand into major Southeast Asian markets, including Vietnam. They provide bespoke market research solutions and collect relevant data through interviews with key players in the market. Their expertise in market intelligence helps businesses gain a comprehensive understanding of the Vietnamese market landscape.

2. Milieu Insight: Milieu Insight is a leading consumer research and data analytics company operating in Southeast Asia, including Vietnam. Their one-stop insights platform, Canvas, offers industry-transforming solutions and insights. With their innovative approach, they help businesses gather consumer insights and make data-driven decisions.

3. Cimigo: Cimigo is a market research firm operating in Vietnam and Indonesia. They specialize in market entry research, providing insights on market size, target audience, opportunities, and risks. Cimigo adopts a multifarious mix of online, mobile, and personalized approaches to understand consumer motivations, enabling businesses to make informed market entry strategies.

4. Market Research Vietnam: Market Research Vietnam is a consulting firm trusted by multinational corporations and government agencies. They offer evidence-based strategic advice by collecting market information and providing expert analysis. Their recommendations help clients achieve enduring success in the Vietnamese market.

5. TITA Research: TITA Research, also known as Turn Insight To Action, is a leading local market research and consulting company in Vietnam. With a nationwide network, they successfully conduct studies nationwide, including large and complex projects. Their expertise and experience in the Vietnamese market make them a reliable partner for businesses seeking actionable market insights.

Services Offered by Market Research Companies

Market research companies in Vietnam offer a range of services to assist businesses in gathering valuable market intelligence. Some common services provided by these firms include:

• Market entry research: Conducting in-depth analysis of the market landscape, including market size, competition, and opportunities.
• Consumer insights: Gathering data and insights on consumer behavior, preferences, and trends.
• Competitor analysis: Evaluating competitors’ strategies, strengths, and weaknesses to identify market opportunities.
• Brand and product research: Assessing the perception and satisfaction of consumers towards brands and products.
• Feasibility studies: Conducting studies to assess the viability and potential risks of business ventures.
• Data collection and analysis: Collecting and analyzing data through various research methodologies, such as surveys, interviews, and focus groups.

Importance of Market Research in Vietnam

Market research plays a crucial role in understanding the Vietnamese market and making informed business decisions. Here are a few reasons why market research is important in Vietnam:

1. Market insights: Market research provides valuable insights into consumer preferences, behavior, and market trends. This knowledge helps businesses tailor their strategies and offerings to meet the needs of Vietnamese consumers.

2. Risk mitigation: By conducting thorough market research, businesses can identify potential risks and challenges in the Vietnamese market. This allows them to develop contingency plans and make informed decisions to mitigate risks.

3. Competitive advantage: Market research helps businesses gain a competitive edge by understanding their competitors’ strategies and identifying unique market opportunities. This knowledge enables businesses to differentiate themselves and stand out in the Vietnamese market.

4. Market entry strategies: For businesses looking to enter the Vietnamese market, market research provides essential information on market size, target audience, and regulatory requirements. This information helps businesses develop effective market entry strategies.

By leveraging the expertise of market research companies in Vietnam, businesses can gain valuable insights and make data-driven decisions to succeed in this dynamic and rapidly growing market.

For a comprehensive list of market research companies in Vietnam, visit our directory on market research companies in Vietnam.