International Marketing Report: Vietnam Market Entry Strategy

This report provides a comprehensive analysis of the international marketing landscape in Vietnam. It begins with an introduction to international marketing and the benefits of globalization, followed by a country overview of Vietnam, highlighting its population, geographical location, and economic integration. The core of the report focuses on a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing business operations in Vietnam. The political factors include the stable political environment and the role of the government. Economic factors such as the GDP growth, low unemployment rates, and purchasing power are discussed. Social factors like the young population and cultural trends are also analyzed. Furthermore, the report explores the technological advancements and the increasing use of digital media. Legal factors, including legislation and policies, are considered, followed by a conclusion summarizing the key findings and their implications for market entry strategies. The report concludes with a list of references.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
Country overview.........................................................................................................................3
PESTLE Analysis........................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International marketing involve overall marketing activities which are carried out in
different nations to customize the preferences of different people. The decision to globalise the
operations of company preferably helps to expand the market share of company by wide
spreading the operations across its periphery. As marketing activities are carried out in different
places due to which it is essential for manager to preview market competition, overview legal
legislation, analyse consumer behaviour as well as external environment condition to create
favourable actions. According to Arpit Srivastava (2017), mainly the large organisation gains the
advantage of economies of scale and participate to carry out portfolio investment in terms to
expand the operations of company which finally maximises overall profitability. This at the same
time can lead to complexity as well because due to the diversity it may becomes complicated for
internal manager to critically carry out research and gain detail insights about the market.
However, it may affect the diverse determinant associated with the offerings of company such as
price formation and advertisement to set desirable image of product within market. Also the
external factor like political instability as well as dynamic requirements of customer are not in
control of company due to which they need to deeply gain market insights and according bring
alterations (Czinkota and Ronkainen, 2013). Thus, diversification of business is an opportunity
for local community as it increase the employment and foreign direct investment which increases
the circulation of funds within economy. Furthermore, globalisation acts as an opportunity that
has increased interconnectivity by successfully diversifying operations in host country. This
report is based on conducting business environment and audit to internationally expand the
business operations within Vietnam. Therefore, for this PESTLE analysis is used in order to
explore diverse conditions based on which the business is diversified and strategies are build to
target the customers accordingly.
Country overview
Vietnam country is stretched over eastern cost part of the Indo-Chinese peninsula that
have population around 92.6 million who spoke Vietnamese, English as well as French.
Vietnam is the peaceful country which share its land with China, Laos and Cambodia. The
capital of Vietnam is Hanoi whose most famous city is Ho Chi Minh that attract wide percentage
of visitor or traveller. The country integrated with global economy due to which it was able to

immensely increase gross domestic product rate and consistently become one of the fastest
growing countries. Moreover, it share diplomatic relation with around 178 countries due to
which it has gained high recognition all over the globe. Participation of country in different
international corporation like United Nations, World Trade Organisation and Association of
South-east Asian Nations led company to raise its global ranking (Vietnam, country, 2020).
Furthermore, the residence of Vietnam has never faced a challenges in regards to poverty,
inadequate expenditure for the social welfare as well as corruption which enhances living
standard of local residence and provide desirable platform to attract different multinational
organisation.
Illustration 1: Vietnam country
Source: Vietnam country. 2020
PESTLE Analysis
It is a framework that involve external factors that can directly affect the operations of
company as well as cannot be controlled by business entity. It is essential for the manager to
constantly remains updated about the external surrounding in which business needs to be

operated. In addition to that to carry out international business the internal representative needs
to expand the functioning by diversifying the operations in new territory which makes it
necessary to understand the legislation, customer preferences as well as political condition to
gain detail insights and undergo the operations significantly within Vietnam market. It comprises
of different elements that are explained in context to the Vietnam country:
Political factor: It comprises of taxation policy, trade tariffs, fiscal policy as well as rules
and regulation which is necessary abide by both domestic and international company. Along with
that it is necessary for local authority to set new reform that needs to be imposed and accordingly
the strategies are reformulated (Pestle Analysis Of Vietnam, 2016). The Socialist republic of
Vietnam country is one of the communist part along with Cuba, China, Laos and North Korea.
This party came into the authority at 1945 and has successfully managed to keep the political
environment stable and mitigate the chances of corruption. Here press and media is strictly
restricted by the local authorities due to high control or bureaucracy of the government. This can
perhaps hide the cases of corruption from the local public which can negatively affect the foreign
business in order to incorporate the operations within Vietnam.
Vietnam has the mixed economy where most of the private companies incorporate out
their business on unique concept in order to meet out the requirements of customers. Along with
that government too plays an essential role in planning as well as governing the functioning of
whole country with the objective to enhance the operations of overall economy. This helps to the
promote the growth of large as well as small business. So it is the suitable options for start-up to
overview the opportunity and work for the convenience of Vietnamese. Generally, the political
condition of Vietnam country is stable due to which it is easier for different business to expand
their operation and accordingly build desirable strategy in order to operate successfully in
external market. On contrary, tight control of political party can affect the decision of
International business because they somewhere needs to restrict their operations which further
affect their profitability margin.
Economic factor:These factor involves inflation rate, foreign exchange rates, interest
rate, disposable income of the consumer that change the demand and supply model;s of
particular economy (Felzensztein and et. al., 2014). To maintain balance between demand and
supply it is vital for different business to analyse economic condition and sustain the interest of
local residence. Business to effectively expand their operations within Vietnam needs to evaluate

economy's performance that possibly generate long term effect in terms to maintain suitable
performance. Due to the wide opportunity for Vietnamese country has successfully maintained
the high economic growth. Also the Gross Domestic Product rate of Vietnam constantly rises up
leads to immense opportunity for different industry like retail, fashion, food as well as beverage
to gain viable amount of profitability by carrying out their operations within Vietnam. Thus, it is
the favourable opportunity for large as well as multinational organisation to carry out their
operations Vietnam where purchasable power of the people is high and spend in desirable items.
Although during the time of inflation when the prices of commodities goes up company need to
reformulate their strategy in order to participate effectively in different economic condition
(Fletcher and Crawford, 2013). This maintain the circulation of funds and attract Foreign Direct
Investment effectively due to which it has been determined that Vietnam is pretty safe country as
well as acts as a potential market for foreign businesses. Further, the main achievement that
company has gained is that it has very low unemployment rate which is below 2% in the past
consecutive years which enhances the lifestyle of people. This is the the favourable factor due to
which most of the international company makes efforts to carry out their operations within
Vietnam because they have potential customer for whom they can target and maximise their
profitability effectively. Furthermore, company often provide the employment opportunity to the
local communities due to which they can get the suitable pool of potential staff with whom they
can work in order to maximise their market share in new market.
Social factor: Some of the determinants of social factors includes cultural trend,
population analytics and demographic which are overviewed in terms to understand and
accommodate the buying trend of public. Generally the buying pattern and demand of customer
rapidly changes due to which it is essential efforts are put in to carry out research and
accommodate latest requirements of potential buyer (Johanson, 2013). The young population of
Vietnam are working age group which assist them to lead better lifestyle and get attracted to the
industry which matches up their requirement which constantly helps the home country to expand
their operations and internal company to expand their business. In Asian market Vietnam was the
only country that managed to enter up top 5 as Happy Planet Index in 2009. Moreover, the
people of Vietnam have optimistic approach towards the future as well as innovation due to
stable political regime and better economic growth.

Vietnam company comprises of abundant labour forces who are mostly unskilled usually
the lack of technical, language and behavioural skills amongst staff help them to get the low
floor jobs. Further, international firms usually find it hard the potential staff for the post of
managers, leaders as well as director as top position can be filled up employees that are
competitive enough in terms to handle the situation significantly (Majaro, 2013). However, the
lifestyle of the people are closed and informal due to which they are the desirable part of sharing
economy. International company immensely focused to cover the requirement of target market
and build up the favourable experience because the chances of dissonance can leads to negatively
influence which can further leads to negative publicity. Thus, shared economy can be either
offer advantage or restrict the operations of company in terms to maintain immense customer
base.
Technological factor: It involve innovation, automation or latest technique adopted by
company in terms to carry out rapid operations by matching up the overall productivity. The
company must look to spread the awareness and posses latest technology that help them to
favourable perform the roles within international market. Intensive research and development is
required for company to expand their operations in new territory and favourably improve the
position of company within prevailing market. Generally international businesses extensively
uses technology in order to build their competitive positioning within the host country. Capital
intensive technique help to product the supreme quality of produce due to which it is highly
preferred by local residence in terms to engage the customer. Along with that the use of digital
media has offers immense convenience in terms to opt for paid advertisement and widespread the
information significantly at different platforms (Paliwoda and Thomas, 2013). Theses paid from
of advertisement includes SEM, affiliate marketing, use of social media and so on that helps to
post up the performance of company and gain result at real time. Furthermore, almost all
industries like fashion, cosmetics and aviation have the software that is used to maintain database
of customer. This is used to gain detail information about the local residence and according the
offerings are provided through personalised messages.
Further, the use of technology is immensely rising within Vietnam amongst national and
international companies to appeal the interest of customer. Thus, to survive in intensive market it
is essential for the manager to use latest technology or innovation with the objective to gain
competitive edge over other rivalries. Usage of internet accessibility has also increased due to

which local resident remain updated about the innovation. Simultaneously it must not affect the
society other company can lose its internal and external stakeholder. Information technology
within the country was rapidly developed and assist company to access the data of customer and
according tap the untapped opportunity. Online transaction has immensely increased because the
people consider it as more safer form of transaction that heavily promote the existence of
business entity within market. Therefore, the company need to overview the competitors
performance and according bring out favourable alternative to cover diverse market successfully.
Legal factor: Legal factor as the name suggest involves legislation or policies that are
established by government and maintained by companies to accordingly shape the overall
operations. It include safety standard, consumer as well as labour laws that help to chart out the
strategies and promote ethical operation for the welfare of employees, environment as well as
society (Papadopoulos and Heslop, 2014). The government of Vietnam comprises of different
laws like Investment law, Enterprise law, global as well as regional agreements which needs to
be effectively adopted by almost all kind of enterprises in order to retain their performance and
carry out suitable performance. Although any change in the reform or addition of new policy is
challenging for the company to abide by to maintain the quality of operations.
Environment factor: Environment refers to the surrounding where the operations of
business take place without hampering external environment. This part of the Pestle is highly
significant for the industries like tourism and agriculture and the determinant of surrounding
environment highly influences their roles. Certain factors like climate conditions, geographical
location and so on needs to be evaluated by company to carry out progressive functioning.
Vietnam company have long coastal borders which makes it a vulnerable country due to which it
leads to high possibility of disaster, rise in sea level, and cause for climate change. So the
international enterprises of Vietnam needs serious consider the environment or surrounding
where they are thinking to incorporate the business. Usually travel and tourist sector finds
difficult to expand their business within the periphery of Vietnam due to high dependency on
climate and possibility of risk. Examining surrounding helps it to draft out the desirable planning
and operation's activities. Even the local resilience of Vietnamese have wide awareness about
their environment so they does not tolerate those internal business which can harm their
vulnerable environment as it increase the chances to cause disaster. Accordingly, the company
needs to take significant precautions to gain acceptance from local community. Automotive

industry that produces fully automatic cars can be highly practised by the society because it does
not leads to carbon emission and accordingly does not becomes the cause of climate change
(Turnbull and Valla, 2013). For instance, JSC limited which is the Taiwanese firm give huge
penalty as it immensely pollute the Thi Vai river which affected aquatic and human life.
CONCLUSION
From the above report it has been determined that it is essential for the global business to
effectively evaluate external market conditions before stretching their operations in host country.
Application of PESTLE analysis helps to give detail information about the countries like
Vietnam based on which company can determine political condition as well as opportunity lies in
new marketplace. Convenience of desirable infrastructure, adequate communication and
transportation facility favourably support the companies to carry out their operations in new
geographical market. Research and development department plays an essential role because on
the basis of this functioning whole planning and execution of business takes place in new
climatic condition. Therefore, there are various industries like automotive and retail that can well
structure their strategy and exploit untapped opportunity which leads to the possibility of long
term sustainable development.

REFERENCES
Books and Journal
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Felzensztein, C. and et. al., 2014. International marketing strategies in industrial clusters:
Insights from the Southern Hemisphere. Journal of Business Research. 67(5). pp.837-
846.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Johanson, J., 2013. International Marketing and Internationalization Processes—A Network
Approach Jan Johanson and Lars Gunnar—Mattsson University of Uppsala and
Stockholm School of Economics. Research in International Marketing (RLE
International Business). 234.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach
to World Markets. Routledge.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Papadopoulos, N. and Heslop, L. A., 2014.Product-country images: Impact and role in
international marketing. Routledge.
Turnbull, P. W. and Valla, J. P., 2013. Strategies for international industrial marketing.
Routledge.
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Vietnam, country. 2020. [Online]. Available
through:<https://www.britannica.com/place/Vietnam>
Pestle Analysis of Vietnam. 2016. [Online]. Available
through:<https://www.ukessays.com/essays/economics/pestle-analysis-of-vietnam-
economics-essay.php>