Hi guys, my name is … and today I will represent my team to talk to you an exciting topic that is

Wal-mart and other Western retailers are considering about jumping into the Vietnamese
market and in this case I will become a knowledgeable consultant to give them some advice:
should they invest in Vietnam?
My answer to them is YES because of following reasons:
 Up to now, the Vietnamese retail market has gathered many large domestic and foreign
distributors, but the development is only the first stage, there are many opportunities
for investors coming later, as long as they have famous brand, differentiations and
applications of sales management technologies then they will easilly catch market share.
 The signing of agreements such as the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), the Free Trade Agreement with the EU (EVFTA),
Vietnam will commit to opening the market for services, investment, and distribution.
Therefore, this is a great advantage for foreign retailers to easily attack Vietnam market.
 Meanwhile, the majority of Vietnamese enterprises are small and medium-sized
enterprises with limited resources, only a few large Vietnamese enterprises such as
Saigon Co.op, Vingroup ... have enough capacity to compete. Hence, this is also a great
chance for large companies in the world like Wal-Mart, Amazon or Best Buy to make
outstanding contributions into Vietnamese retail industry.
 The demand for foreign goods of Vietnamese consumers is increasing. On average,
there are 10 people buying sweets, canned food and non-alcoholic drinks, then there
are about 4 people choose imported products. This survey was conducted by the
Vietnam Association of High-Quality Goods on a national scale, collecting more than
16,000 feedbacks. The survey also showed that after only one year in 2018, the
proportion of Vietnamese consumers who love and often buy domestic products has
decreased by 18% and 22% respectively, to only 60% and 70%. And the demand for
foreign goods is predicted to increase in the following years. This is a good sign for Wal-
Mart and other Western retailers to enter into the Vietnamese market.
Besides that, I would like to give them some suggest before they officially run business in
Vietnam:
 Wal-Mart or Amazon should launch a full-scale research into Vietnamese market
including following aspects:
o Meet the requirements for licenses and approvals
o Compliance with tax and financial obligations
o Defining goals and strategic planning. It is necessary to identify the strengths,
weaknesses, challenges and opportunities of enterprises when penetrating
Vietnamese market.
o Defining which business model they should apply for a new market. There are 3
basis forms for a multi-national company (MNC) go international: joint venture,
merge & acquisition (M&A), creating new foreign subsidiary. Each model type
has different pros and cons, so they need to consider carefully before jumping
into Vietnamese market.
 Take Auchan retail as an example, do you know Auchan retail? Auchan Holding is one of
the largest retail groups in France and Europe with nearly 360,000 employees in 18
 countries around the world. Auchan entered Vietnamese market since 2015, but only
after 4 years, this retailer had to give notice of dissolving from the market due to losses.
First, that business has not chosen the right customer segment. Typically, Parkson
closed due to the high-end sales segment but currently has a low income per capita in
Vietnam, just over 2,500 USD. It takes 5-10 more years, when Vietnamese GDP reaches
5,000-7,000 USD, then high-class goods will sell well. Secondly, choosing the wrong
customer segment has prevented the company from reaching the norm sales to
breakeven and become profitable. This situation lasted for that business and forced to
dissolve.
 So I hope Wal-Mart and other Western retailers will learn from that case of Auchan to
make decision effectively for Vietnamese market.
That’s all.