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It goes without saying, but the markets in Vietnam and Japan, despite both being in Asia, are quite different. To succeed, you need to tailor your marketing and promotion strategies to fit each specific region. Therefore, in this article, we’ve summarized key points to consider for marketing and promotion when expanding into Vietnam.
Japan’s economy has grown alongside the development of media since the period of rapid economic growth. Therefore, even with the rise of digital media, traditional promotional methods such as newspapers, magazines, flyers, and direct mail still hold significant strength.
However, Vietnam, having rapidly developed as a burgeoning country during the rise of digital media, has a minimal presence of traditional print media. Digital and online platforms are the mainstream. There is no culture of direct mail or flyer distribution, and it’s uncommon to find a mailbox filled with promotional materials.
As mentioned in point 1, print media is weak, and digital and online platforms are dominant. In addition to widespread use of the web, social media platforms like Facebook and Instagram are very popular, with the majority of Vietnamese people enjoying these services.
Marketing and promotion via services similar to LINE, such as Zalo, are also active, and there is a high usage of apps.
Digital signage is prevalent throughout Vietnam, even more so than in Japan, often found in elevators of residential and office buildings.
Compared to Japan, conversion rates are very high, but the actual closure rate for services or products tends to be lower.
Japanese people are more meticulous when making inquiries or requesting information, often with the intention of closing a deal. In contrast, Vietnamese people tend to make inquiries even with minimal interest.
Because inquiries are made easily and frequently, there is often a lack of genuine interest, making it difficult to convert inquiries into actual sales.
In Japan, sharing content is often considered a reflection of one’s own thoughts, so people tend to be cautious about what they share. In contrast, Vietnamese people share and like content on social media very casually. However, just because something is widely shared doesn’t necessarily mean there is a high level of interest in it, similar to the observation in point 3.
In Japan, people rarely send messages to Facebook pages of businesses, and replies are not always forthcoming.
In Vietnam, however, the messaging feature on Facebook pages is extensively used. People frequently send questions via messages, and businesses are prompt in their responses. Additionally, messaging apps like Zalo, similar to LINE, are also commonly used for communication.
While Japanese consumers tend to buy high-quality items even if they are expensive, Vietnamese consumers are less likely to purchase based solely on added value (though it is not impossible).
When marketing in Vietnam, promotions such as discounts or “buy this and get a free gift” tend to elicit a stronger response. Free gifts, especially in consumer goods, are very common and highly effective.
Japanese people tend to price things roughly in dong because the unit of Vietnamese dong is inevitably large ( ie. 50 yen is 10,000 dong). However, for Vietnamese people, they are sensitive to even the slightest difference in price.
For example, while Japanese consumers might not notice much difference between 20,000 dong (100 yen) and 25,000 dong (125 yen), for Vietnamese consumers, this can represent a significant price gap that might reduce purchase rates. Pricing should be determined carefully, taking into account Vietnamese perspectives.
From our experience with various designs in Vietnam, it seems that Vietnamese people tend to prefer more flashy designs.
What might be considered “stylish” in Japan, such as very simple or minimalistic designs, might come across as “too plain,” “lack of color,” or “boring” in Vietnam. Instead, flashy designs with a sense of luxury, vibrant colors, and dynamic elements are more favored. Even bold color schemes that are uncommon in Japan are popular.
As discussed in the blog “The Pitfalls of Relying on ‘Japanese Quality’ as Your Strength When Entering the Vietnamese Market,” while “Japanese Quality” is valued by Vietnamese consumers, relying solely on this strength is not enough to succeed in the Vietnamese market. Localization that aligns with Vietnamese market needs, such as appropriate functions and pricing, is essential.
In Vietnam, good products, services, and marketing strategies can be quickly imitated. What you considered your strength can soon be copied, and the speed of new product and service launches is fast. Even if your strengths are initially welcomed in the Vietnamese market, similar products and new offerings will quickly emerge, leading to obsolescence and forcing you to exit the market. It is essential to continually innovate and strengthen your marketing efforts.
In this article, we discussed key points for marketing and promotion when expanding into Vietnam.
The fundamental principle of marketing activities is to “adjust to local perspectives rather than relying solely on your own knowledge.”
While the excellence of Japanese services and products is undoubtedly impressive, expanding them in Vietnam requires a deeper understanding of the local market.
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We are ALIVE based in Vietnam
This is a website design for a company in the garment industry, expertly crafted by ALIVE Vietnam.
In 2023, Vietnam's economic growth rate slowed to 5.05%, below the government target of 6.5%, due to the downturn in the export industry and the real estate industry. In 2024, however, the Vietnamese economy is expected to gradually recover, partly due to the government's economic measures.
In 2023, Vietnam's export industry was sluggish due to slowing demand from Europe, the U.S., and China, and there was a wave of restructuring among both local and foreign companies in the manufacturing and real estate sectors. On the other hand, it is a fact that we began to see articles and columns in the media reporting that the economy is gradually showing signs of recovery in 2024. In fact, Alive Vietnam has been receiving an increasing number of inquiries from companies wishing to market their products and services to the Vietnamese market.
Vietnam is expected to continue experiencing long-term economic growth. In recent years, the rising labor costs in Vietnam, coupled with the impact of the weak yen, have made "securing good talent at reasonable costs" one of the key challenges. Therefore, we have compiled various currently available data to provide an overview of "Vietnam's salary trends and what Japanese companies should do now to attract top talent."
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