3 issues Vietnamese businesses need to pay attention to when conquering the dream of reaching international level.

Conquering foreign markets is always the goal of many Vietnamese enterprises. However, the journey to go global still encounters some difficulties in terms of innovation and how to apply it to suit the needs and culture of international customers.

The role of enterprises today is not only in the process of national digital transformation, but also in exploring foreign markets. In 2022, according to statistics of the Ministry of Information and Communications, there were 1,400 ICT enterprises with “Made in Vietnam” technology products sold in foreign markets. This number is considered modest compared to the number and capacity of Vietnamese enterprises. While large enterprises with sufficient potential have invested directly in order to thrive in size and speed, small and medium-sized enterprises also mainly choose the method of implementation according to specific projects, suitable for their needs. its business size.

Three great potentials of Vietnamese enterprises

Vietnamese enterprises not only have the strength of dynamic and creative human resources but also have the ability to compete in price compared to the global market. This is the reason for Vietnamese businesses to have enough potential to go abroad and bring Vietnamese knowledge and technology to “open the world”.

Firstly, Vietnam is one of the countries with low labor and production costs. According to the report “Supply Chain Shift – A Closer Look at the Cost of Doing Business in Asia” by TMX, Vietnam’s average operating costs are currently the lowest in the region, just higher than Cambodia and Myanmar. . This makes it possible for businesses to provide products and services at a lower cost than their competitors in developed markets.

Second, Vietnam has abundant human resources, a young and dynamic workforce with about 50.74 million people of working age, many of whom are highly trained in the fields of science and technology. , sales and marketing. Vietnamese businesses can take advantage of the talents and intelligence of these employees to develop new technology products and services.

Third, with the rapid development of the economy, Vietnam is becoming one of the most potential markets that the international market is targeting thanks to its political and monetary stability; economic openness, abundant labor force and competitive labor prices. This can be seen in the inflows of investment capital into Vietnam: net foreign direct investment (FDI) inflows average 5% of GDP annually and this is by far the highest rate in the world. region (According to UNCTAD investment report). Vietnamese enterprises can fully take advantage of this opportunity to develop business activities and expand markets.

It can be seen that Vietnamese enterprises are having many competitive advantages in the “war” to bring products to the world. However, in order to take advantage of these competitive advantages, Vietnamese technology enterprises need to have an appropriate business strategy, and at the same time must focus on investing in research and development to improve the quality of products and services, meet the strict standards of the international market.

Three issues of Vietnamese businesses need to pay attention when going abroad

VINASA has just conducted a survey showing that: Accordingly, the three groups of issues that businesses are most concerned about when going abroad are the market (74.6%), market access strategy (72.6%), channels and approaches (68.3%). The next group of problems is the funding and experience of the previous businesses.

Firstly, about the market: According to the survey, Southeast Asia, the US, Europe, Japan, and South Korea are the markets that Vietnamese ICT enterprises prioritize when reaching out to the world. In particular, in Europe, because companies there lack human resources and products, they lack innovation, so the products of Vietnamese enterprises when they go there are evaluated as a “golden opportunity” for businesses. market exploration and development.

Second, about market access: Each country, each different region will have different markets. Therefore, businesses need to quickly connect to distribute products and develop widely. The problem is how to find the right distributors in different countries, get information to work quickly and save time searching for markets for businesses? Therefore, if Vietnamese technology enterprises want to succeed, they must have the right strategies and visions, such as choosing a strategy to go abroad, determining where to invest and cooperate, and must have a great demand for products or services. shortage of human resources. The selection of business partners, consultants and alliances is also an important factor in the process of enterprises accessing the market.

Third, about the approach: With the development of technology and the requirements for innovation with products, Vietnamese businesses need an effective and reasonable approach. Regardless of which enterprises plan to enter and penetrate the market, they must consider a form of coordination, joint venture building, etc. Through cooperation mechanisms to develop an appropriate approach management, thereby minimizing business risks.

Some countries in East Asia, for example, South Korea, each year also spend 3 billion USD on promoting trade in information technology, so they have programs to promote products abroad. for businesses and booths at international conferences. As for Vietnam, there is no immediate source of investment capital and it is still facing difficulties in developing a market access strategy; Therefore, in 2023, Vietnamese enterprises need to make breakthroughs and improve their position in the international arena. Investing in research and development to improve the quality of products and services, understanding the market and target customers, or finding partners in host countries are some of the ways to speed up and effectively deepen the penetration process. enter the market. In addition, Vietnamese businesses also need to fully meet the regulations and legal requirements of the markets they want to access, thereby understanding the market and having sustainable development strategies for businesses.

In the Vietnamese market, it is also necessary to build digital platforms to connect businesses with the labor market both at home and abroad, helping businesses solve the difficult problem of connecting and bringing products internationally without saving money. Save costs and avoid risks. In Vietnam, BambuUP is the open innovation connection platform that brings optimal solutions, valuable information and connects businesses, Start Vietnam closer to the international market, with programs like VIET Startup INTERchange or Challenge hub,…