This report is published by EqualOcean and provides a comprehensive analysis of the market environment, opportunities and challenges, business strategies, and development prospects for Chinese enterprises going overseas to Vietnam, aiming to offer decision-making references and practical guidance for Chinese companies.
1. Overview of the Vietnamese Market: Vietnam has a population of over 100 million, abundant labor resources, rapid economic growth, a high GDP growth rate, and a continuously optimized industrial structure, with the proportion of the service sector gradually increasing. At the same time, Vietnam's e-commerce market has great development potential, the consumption capacity of the middle class is gradually improving, and brand-building awareness is also strengthening.
2. Vietnam's Politics and Economy
- Political aspect: The "four-horse carriage" political structure has returned to normal, but there are contradictions between the northern and southern factions in the political arena, making the political situation somewhat complex. The warming of China-Vietnam political relations has created a favorable political environment for enterprises going overseas.
- Economic aspect: In 2023, GDP reached USD 476.3 billion, with a growth rate of 7.09%, and is expected to maintain a high growth rate in the future. However, Vietnam's population growth is slowing and aging is intensifying, which to some extent restricts economic development. Exports drive the development of the manufacturing industry, and export volume hit a record high in 2024, but the economy is overly dependent on foreign investment and faces risks such as weak global demand.
3. Vietnamese Culture and Business
- Cultural aspect: Vietnam is a multi-ethnic country, with the Kinh ethnic group being dominant, Vietnamese as the main language, and diverse religious beliefs. Its culture is influenced by various factors, society is centered on villages and families, Confucianism and egalitarianism coexist, and collectivist concepts are strong.
- Business aspect: Finance, real estate, and manufacturing are important engines of economic development. The manufacturing industry is developing well and is expected to transform towards high value-added industries; the real estate industry is showing a growing market scale; and the financial industry is expanding in response to increasing economic growth demands.
4. Strategies for Chinese Enterprises Going Overseas to Vietnam
- General strategies: Enterprises need to assess market trends and opportunities in Vietnam and make strategic plans in advance. Taking the energy storage industry as an example, Vietnam has development opportunities in renewable energy and energy storage. At the same time, companies should plan their organizations well, conduct market insights, and restructure products and services to meet the needs of the Vietnamese market.
- Channels and marketing: Sort out and build sales and supply chain channels, and enhance brand awareness and influence through various means, such as cooperating with local companies and participating in industry exhibitions.
- Localization and risk control: Promote the localization process, fully consider the needs of the Vietnamese market, and achieve sustainable development by utilizing ESG concepts. At the same time, control risks in policy, market, economy, and technology, and reasonably leverage capital to drive enterprise development.
5. Vietnam Overseas Index and Development of Chinese Enterprises in Vietnam
- Overseas Index: Vietnam's overseas index has a comprehensive evaluation score of 62.93, with advantages in growth potential, manufacturing attractiveness, and bilateral trade, but faces challenges in political stability and business environment.
- Enterprise development: Chinese enterprises' investment and business activities in Vietnam are increasing, bilateral trade volume continues to grow, and Chinese companies have many opportunities in manufacturing, infrastructure construction, e-commerce, etc., with distinctive industrial distribution in northern and southern Vietnam.
