Asia Pacific region - aprc-research

FEATURE
Meeting the MR needs
of Vietnamese SMEs
Multi-tasking and non-traditional
research approaches are required
when working in Vietnam, write
Tran Ngoc Dun and Tuong Tuan Thong.
Small and medium enterprises (SMEs), employing fewer
than 300 employees, account for a significant proportion
of national wealth and growth in less developed countries.
In Vietnam, a typical developing and emerging country,
the number of SMEs is reaching 400,000. They represent 99
per cent of the number of businesses of the country; employ
77 per cent of the workforce and account for 80 per cent of
the retail market.
Growth in the market research industry in Vietnam will come
from SMEs and not just the big multinational corporations. This is
because SMEs have been consistently the source of growth in Vietnam;
on average, their profits grow about 20 per cent each year.
SMEs in Vietnam receive great attention from the Vietnamese
government as well as non-government organisations (NGOs) in
initiatives designed to improve their competitiveness. Organisations
such as the Vietnam Chamber of Commerce and Industry (VCCI),
the World Bank and the Asian Development Bank (ADB) have
implemented a variety of programs supporting SMEs to help them
improve working skills for their employees and business management
skills for leaders.
In particular, recent initiatives by the Ministry of Trade and
Industry and VCCI have helped Vietnamese SMEs conduct professional
market research by financing part of the research costs.
This research, which has focused on finding ways for Vietnamese
brands to enter rural markets, has generated strong awareness
among SMEs about the benefits of using market research. Market
research agencies in Vietnam have been encouraged to participate
into these initiatives to support SMEs and also to promote the agencies’
names to this sector.
Until 2007, large businesses (mostly multinational) remained
the biggest spenders on research in the country. However, after
joining the World Trade Organisation (WTO) in 2007, many SMEs
in Vietnam have grown to be significant players in their industries.
Typical cases are Nutifood Nutrition & Dairy, THP Beverage and
Masanfood. These companies (established approximately nine to
10 years ago) have grown from small enterprises to become substantial
players, with research budgets that have grown significantly
and are now comparable with multinationals in the same category.
Before 2007, the list of top 10 advertising spenders included typical
names such as Unilever, P&G, Coca Cola and Pepsi. By 2010, THP
and Masan were ranked number one and number three respectively
in ad expenditure.
This illustrates how market research agencies that effectively
promote and sell their services to SMEs could potentially grow
alongside these companies.
16 Research News March 2011