Vietnam’s market research industry – Features and trends

Although the world economy is facing a global financial crisis, the forecasts for the growth of the market research industry in the coming years are still very optimistic. Most economists and experts in this field see the possibility of sustainable growth of 4-5% of the industry stemming from the actual needs of companies in the market.

According to Statista, revenue from the market research industry grew from $32 billion in 2008 to $73 billion in 2019.

Prospects and trends

The needs of customers are increasing rapidly and becoming more and more diversified, which has been and is promoting the strong development of the market research industry. Businesses need to understand consumers more to apply that understanding to communication, production development and new product ideas.

Currently, the saturation levels of market research are very different in different markets around the world. However, Vietnam is still in Group A with a spectacular market research growth of more than 10%, an impressive figure compared to the world average of 6.5%.

However, this industry in Vietnam is still quite nascent with the total expenditure on market research reaching only about $22 million, which is considered quite low compared to other countries in the region such as South Korea ($392 million), Thailand ($80 million) and Malaysia ($57 million). In terms of total expenditure on market research per capita, the figure for Vietnam only reached $0.25, Thailand $1.21, Malaysia $2.13, and Singapore $13.16.

Therefore, most experts admit that Vietnamese enterprises have not really invested in research activities in a methodical and professional manner, nor have they properly appreciated the essential importance of market research results for business strategy planning to survive and develop in the competitive period.

Market research services in Vietnam

Vietnam is open to allow foreign investors to provide market research services in Vietnam including:

• Services related to the collection of information about the prospects, potentials and current status of products on the market;
• Market analysis services;
• Services to collect economic and social information.

However, foreign-invested enterprises are not allowed to provide public opinion polling services on social, economic, political issues, etc.

To operate in Vietnam in this field, foreign investors can be present in the following forms:

• Setting up a representative office;
• Establishing a joint venture with a Vietnamese partner (provided that the foreign capital contribution does not exceed 51% of the joint venture's capital);
• Establishing a 100% foreign-owned enterprise

In addition, foreign enterprises operating in this field that do not have a commercial presence in Vietnam as mentioned above are also allowed to provide these market research services to customers in Vietnam through the cross-border supply.

Source: Statista

Compiled by VietnamCredit

Tag: market research service; market research in vietnam