Vietnam is not a market for inexperienced exporters or firms that do not have a well-established export department or business development unit. U.S. companies preparing to enter the Vietnam market must plan strategically and be persistent and consistent with face-to-face follow-up. Building relationships is important. It can take up to two years to make a successful sale in this market.
Depending on the sector, U.S. companies entering the Vietnam market may need to consider two marketing efforts: one for targeting the northern part of the country, which has a higher concentration of government ministries and regulatory agencies, and one for the south, which is the dominant industry hub. The two markets also differ in terms of consumer behavior and preferences.
To enter or expand in Vietnam, U.S. businesses may do so indirectly through the appointment of an agent or distributor. U.S. companies new to Vietnam should conduct sufficient due diligence on potential local agents or distributors to ensure they possess the requisite permits, facilities, workforce, and capital. Firms seeking a direct presence in Vietnam should establish a commercial operation utilizing the following options: firstly, a representative office license (governed by Decree No. 07/2016/ND-CP, allowing market research and business promotion activities for a 5-year renewable term); secondly, a branch license; and lastly, a foreign investment project under Vietnam’s Law on Investment 2020, as amended in 2025.
U.S. companies doing business in transportation, telecommunications, energy, environmental, water, civil aviation, financial services, and other infrastructure sectors are advised to develop strategies and capabilities for bidding on projects funded by Official Development Assistance (ODA), as Vietnam continues to receive ODA as a lower-middle-income country. Sectors prioritized for ODA funding are primarily infrastructure construction and modernization, environmental projects, and human resource development.