Marketing Australian products and services in Vietnam
Seeking an appropriate local importer or distributor as a partner is very crucial for Australian exporters to achieve success in their business in Vietnam. Obtaining valuable support from this local partner in relation to setting up the business and dealing with complicated import procedures will lead to easier market access. Australian exporters should undertake thorough market research to identify potential buyers and reliable distributors, as financial information on companies is generally not available.
Australian exporters and investors should also be aware of Vietnam’s frequent regulatory changes. Regular updates of policy changes are advised to help exporters adjust their marketing strategies accordingly and timely.
The distribution value chain for industrial sales includes food processing companies and intermediary local traders or consignee importers and international trading firms. Direct sales with frequent market visits are recommended for this market segment.For consumer goods, the distribution channel includes importers, wholesalers and distribution points such as supermarkets and food retail outlets.
The emergence of supermarkets in major urban centres offers opportunities to Australian suppliers of consumer goods for direct sales to these distribution points.
Vietnam has 11 major seaports, including Ho Chi Minh City in the south, Hai Phong in the north and Da Nang in the centre. More container ports are planned to open and another project is ongoing to reduce traffic congestion in inner Ho Chi Minh City by relocating its eight port facilities to outlying areas by 2020. Container handling activity is focused in the two main shippingcenters of Ho Chi Minh City and Haiphong, including their respective satellite ports of CaiMep-ThiVai and Cai Lan. These locations make up 97 per cent of Vietnam’s total container handling volumes.
There are two Vietnamese airports that deal with cargo handling for international markets: Tan Son Nhat Airport (TSNA) in Ho Chi Minh City and Noi Bai Airport (NBA) in Hanoi. A third airport, Long Thanh Airport located approximately 40 km northeast of Ho Chi Minh City Tan Sot Nhat Airport is currently under construction and is expected to be operational by 2020. TSNA has two cargo terminals including Tan Son Nhat Cargo Services (TCS) and Saigon Cargo Service Corporation (SCSC).
The majority of Logistics Service Providers (LSPs) consider trucking costs to be higher and standard of trucking service delivery to be lower in Vietnam relative to China, India, Malaysia and Thailand. Most of the trucking companies are small and operate second-hand trucks that are subject to poor maintenance.
(Source: Austrade, Agribusiness to Vietnam, 07/2016)