Wegrow - Asian Startup Spotlight #7 🎙️ Hien Nguyen Lonc & PwC Vietnam Ltd 🇻🇳

PWC's business in Vietnam

HIN's decision to move to Vietnam is influenced by its growth potential and the opportunity to contribute to its development. Vietnam's progress over the past nine years is acknowledged, and the speaker highlights that the journey is ongoing. They've observed the growth of PWC's business and the increasing interest of foreign clients in Vietnam. Domestic enterprises have also flourished, transforming from small businesses to international players considering IPOs. The speaker encourages embracing Vietnam's youthful market and its potential for growth.

Retail trends and opportunities

Advice for those considering moving to Vietnam includes having a strong drive, being adaptable, and understanding that certain aspects of business might not be as mature. The speaker discusses retail trends and opportunities, emphasizing that Southeast Asia is a rapidly growing market, particularly in retail. Vietnam's retail landscape is unique, with challenges and differences from other Southeast Asian countries. The speaker mentions that predicting Vietnamese consumer behavior is uncertain, which presents opportunities for innovative business models to succeed. They touch on the evolution of fintech in Vietnam and its impact on financial services.

During the Q&A, the speaker is asked about offline and online retail in Vietnam. They express that while nothing is definitive, offline retail holds promise due to the dynamic and evolving nature of the market. The discussion is set to transition to online retail, specifically TikTok.

Unique aspects and challenges

The speaker discusses the retail market in Vietnam, highlighting unique aspects and challenges. They mention that traditional shopping malls might not be the main traffic drivers due to the evolving market. In terms of offline retail, competition from traditional retailers is intense, and the prevalence of motorbikes as opposed to cars influences shopping habits. Regarding online retail, it's still early in Vietnam, and the landscape could change significantly with the potential entry of players like Amazon. The speaker emphasizes that understanding the Vietnamese market and tailoring strategies to its nuances is crucial for success.

In terms of innovation, they mention examples like innovative second-hand car models and fintech products. They also highlight the success stories of retailers like Kong Kung, offering tailored baby care products, and My Son, a distributor of fashion retail brands. These companies have grown quickly by identifying local demand and matching it with suitable products.

When seeking advice, local companies might struggle with transitioning to external advisors due to their history of internal decision-making. Foreign retailers often need to align their strategies to Vietnam's unique conditions and consider the local culture when implementing innovative ideas.

The speaker discusses the challenges faced by retailers seeking consulting services. For retailers, the main challenge is ensuring a strong return on the money spent on consulting services and benefiting from the advice. A common issue for foreign retailers seeking consulting services is the disparity between macro-level perspectives and on-ground realities. Many foreign clients visit only major cities like Ho Chi Minh City and Hanoi, gaining a limited perspective. The speaker emphasizes the importance of engaging with local consumers through focus groups and surveys, as well as conducting thorough fieldwork to understand demand and supply in Vietnam's retail space.

They address a question about the market opportunities in Vietnam for both foreign and domestic companies, mentioning that while 2023 has been challenging due to various factors, there is hope for recovery in the second half of the year. Lastly, they touch on using CBR (Central Business District) and CBL (Central Business Location) for location selection in the retail industry and highlight the significance of understanding Vietnamese culture beyond just location considerations.

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