The generally essential need to approach emerging target markets, often focused on CIVETS countries (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa) in several business sectors, achieving concrete results.
Vietnam represents a high potential target market: economic growth reported high level results, with a medium real GDP increase of 7% per year since 2004 until last two years. Economic performance has been also followed by lack of stability with a boost of inflation index [see CIA World Factbook for further info].
An interesting research on the perception of Italian brands in Vietnam highlighted the good potential for made in italy products, and performed a general analysis on the importance of market research investments considering cultural gap issues and the quick evolution of consumer patterns. Italian products are often perceived as luxury goods, so a key factor in any marketing approach should consider promoting high quality and affordable prices focusing on medium-high consumer segments.
AT Kearney, the world-class management consulting company, also reported similar attention on consumer patterns evolution: Vietnamese average profile is still focused on basic goods but will quickly involve higher product-segments.
Present business sure is real estate: huge investments focused on structured projects and important urban developing activities. A good example is Dao Viet Eco City project, realized following the success reported by innovative projects like Dongtan – China Eco City, or Zira in Azerbaijan, Palm Island in Dubai and Masdar City in Abu Dhabi. A five artificial isles area, 800 hectares large, designed according to a structured project made in Italy by T-Studio (the website appears to be under construction, unless the news reported a worldwide press coverage).
Another clarifying example is the south-korean project portfolio, with a financial outlook on VnEconomy, that involves major contract projects and urban development plans all over the country.
The country potential is doubtless very interesting, but the key business involves furnishing, construction and contract companies able to provide integrate or “turnkey” solutions.
Vietnamese jungle is a good place to start the long walk to CIVETS country.