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Thinking of expanding your business to Vietnam? Vietnam’s dynamic economy and rapidly growing market make it an attractive destination for foreign businesses. However, navigating this new landscape comes with unique challenges. Our expert, Hương LÊ – Director of Corporate Services and HR Solutions, provides valuable insights and strategies for foreign companies looking to successfully establish or expand their presence in Vietnam. 

In this case study, we will explore how we helped SVR, a global skincare brand, overcome challenges and build a strong local team in Vietnam. Read on to discover the three key success factors that led to their successful expansion. 

Ms. Huong LE Director of Corporate Services & HR Solutions

Determination: persistence is key to success

Expanding into a new market is never easy, and Vietnam is no exception. SVR faced initial hurdles, from understanding the local market to finding the right talent. Success in Vietnam doesn’t happen overnight. It requires determination and a long-term commitment to understanding the market and adapting to its changes. 

For foreign companies, entering Vietnam can involve legal and cultural barriers that require persistence to overcome. When SVR first arrived, they faced challenges in sourcing local talent and understanding local regulations. However, their persistence in building relationships and refining their approach eventually paid off, leading to their successful establishment in the market. 

Tips for staying determined: 
  • Stay patient as you learn about Vietnam’s business environment. 
  • Build local partnerships to navigate challenges more effectively. 
  • Continuously refine your business strategy based on market insights. 

Local expertise: understanding the legal and cultural landscape 

Having local expertise is crucial to avoid costly missteps in Vietnam. SVR’s journey highlights the importance of understanding Vietnam’s legal and cultural landscape before making significant business decisions. From hiring practices to compliance with local regulations, foreign companies need an insider’s perspective to operate smoothly. 

For SVR, we provided expert local knowledge to guide them through Vietnam’s labor laws, tax regulations, and cultural nuances. Our local experts helped SVR avoid potential pitfalls that many foreign businesses encounter, such as regulatory fines or employee turnover due to cultural misunderstandings. 

Key areas where local expertise matters:
  • Legal Compliance: Labor laws, tax regulations, and business permits. 
  • Cultural Awareness: Understanding Vietnamese business etiquette and communication styles. 
  • Market Dynamics: Knowing local consumer preferences and industry trends. 

Adaptation: aligning business strategies with local practices 

Every market has its unique characteristics, and adaptation is essential for success in Vietnam. For SVR, one of the critical factors was adjusting their HR management and operational strategies to fit local norms. Vietnam’s business environment is shaped by its culture, and understanding these dynamics can make or break your expansion efforts. 

We worked with SVR to help them adapt their management practices, ensuring that their recruitment and team-building efforts aligned with Vietnamese cultural expectations. This included creating an inclusive work environment and offering competitive benefits that resonated with local employees. 

How to adapt effectively:
  • HR Practices: Tailor your recruitment and management style to local talent. 
  • Customer Preferences: Customize your products or services to meet the expectations of Vietnamese consumers. 
  • Operational Flexibility: Be ready to adjust your business operations to local regulations and market demands. 

Case study: How we helped SVR build a local team in Vietnam 

When SVR, a global skincare brand, decided to expand its operations into Vietnam, they faced several challenges. From navigating complex labor laws to understanding local consumer behavior, SVR needed expert guidance to ensure their expansion was successful. 

Our Approach:

  • In-depth market analysis to understand the competitive landscape. 
  • HR consultation to help them recruit and retain top local talent. 
  • Legal and compliance support to ensure they met all regulatory requirements. 

Thanks to their determination, reliance on local expertise, and ability to adapt, SVR successfully built a local team that aligned with Vietnam’s business culture and operational environment. 

Watch Hương LÊ’s full review of how we helped SVR build a local team while overcoming operational challenges. Click here to watch the video

Le Vietnam et l'Asean - Validation de potentiel : diagnosis & focus panel for SVR
Le Vietnam et l'Asean - Validation de potentiel : diagnosis & focus panel for SVR

Final Thoughts

Expanding into Vietnam offers exciting opportunities, but foreign companies must approach the market with the right strategy. As this case study shows, determination, local expertise, and adaptation are key to successfully navigating Vietnam’s business landscape. Whether you’re setting up operations for the first time or expanding an existing presence, following these success factors will increase your chances of thriving in Vietnam. 

If you’re considering entering the Vietnamese market, contact us via hello@sourceofasia.com to learn how we can support your journey with tailored business development solutions!