Park Han-sol reports on Korea's financial regulators, along with fintech and insurance. She previously wrote about the art world, from biennales and exhibitions to fairs and auctions, with a focus on Seoul and the figures shaping the scene. Before joining The Korea Times, she spent a year at ABC News' Seoul bureau, contributing to coverage of major Asia-Pacific events.
Book delves into Vietnamese way of doing business
"Doing Business in Vietnam" by Lee Ji-yeon / Courtesy of Gilbut Publishing
By Park Han-sol
By Park Han-sol
Busy streets filled with motorcycles zipping in all directions fit a scene most people could easily associate with Vietnam. With narrow roads and public transport services still in development, motorcycles have had a significant impact on local consumer trends.
A majority of urban consumers primarily prefer roadside shops to shopping malls as they can easily check out products while going riding their motorcycles. They resort less to impulse buying because they go directly to the shops offering products they are looking for rather than window shopping in malls, a conscious behavior that carries over to online platforms. Riding scooters under the scorching sun and a wave of street dust also influences women's interest in skincare and fashion.
In her book “Doing Business in Vietnam,” business consultant Lee Ji-yeon examines such cases of local lifestyles and business trends that have shaped the rising Southeast Asian nation based on her 15 years of experience in the country.
Lee has played a role in successfully launching Korean bakery franchise Tous Les Jours and cosmetics brand Innisfree in Vietnam. Tous Les Jours was launched as a bakery cafe as the Vietnamese people often drink coffee inside the shop but buy bread to take home. Innisfree's popularity there was partially due to its brand image of promoting natural beauty.
The author stressed the importance of understanding Vietnam's distinct values and culture and how they affect consumer trends, especially for global enterprises that aim to either start or expand their business in the country.
“There are two ways to reduce risks: glocalization, providing products that incorporate Vietnam's particularity to global universal values, and a flexible, step-by-step approach that breaks down different strategies at the entering stage and at the expansion stage.”
Vietnam, one of the fastest-growing markets in the world, is striving to become a financial hub with its higher proportion of young population and market potential. Despite the global pandemic, the country's growth this year is expected to reach 2.4 percent, among the highest figures in the world, according to the International Monetary Fund (IMF).
In order to better understand the Southeast Asian country's market and its consumers, she provides seven keywords, with four of them defining the country's long-lasting values and customs ― familyism, self-esteem and honor, naturalism and tolerance ― and others offering a glimpse of a globalized, changing lifestyle ― convenience, experience and innovation.
Lee emphasized Facebook as a means to do business, saying it's seen as an online extension of the country's relationship-centered culture and connections in the business world and word-of-mouth marketing strategy. She also stated cash on delivery service, which prioritizes the convenience of consumers, dominates the local e-commerce market.
Based on each keyword, she introduces 14 promising startups along with interviews with their founders, including Genetica specializing in premium gene analysis for Asian populations, sneakers brand Mot, social selling platform Ecomobi and the country's first unicorn VNG. Vietnam is economically vibrant and dynamic with the number of newly created businesses reaching more than 140,000 as of 2019, the author explains.
“Vietnam is an attractive market as it has a large young population curious about new products and services. But it can also be risky because it's always changing and looking for new things,” Christie Ho, co-founder of the local organic skincare brand Skinna said in an interview. “So it becomes essential to stay up to date and busily study and follow trends.”