Exploring and learning about the markets in South East Asia: Vietnam

The Leap4Growth project aims to support at least one hundred technology companies from Estonia, Latvia, Finland and Sweden in securing export deals in the Greater Bay Area (via Hong Kong) and Vietnam.

Vietnam is considered one of the most stable countries in Southeast Asia. Its single-party political structure has helped create a predictable environment and steady economic development. The contrast between the northern and southern regions remains visible. The north, where agriculture, industrial manufacturing and tourism dominate, is characterised by lower income levels. In the south, the economy is more innovation driven with a strong concentration of startups and a noticeably wealthier population.

Across the country, Vietnam has set its sights on accelerating the adoption of new technologies. Artificial intelligence and digitalisation are priorities, and the rapid introduction of digital solutions can already be seen in many sectors.

A hierarchical market shaped by national priorities

Vietnam’s market dynamics are rooted in a clear hierarchical decision-making culture, which is closely linked to its political system. Key public services such as healthcare, education and energy remain under state control, and the government actively protects the domestic market. At the same time, Vietnam is positioning itself as a global manufacturing hub with competitive labour costs while also prioritising digital transformation and innovation.

Because government priorities strongly influence private sector behaviour, foreign companies including those from the Nordic and Baltic region can find promising entry points when their solutions support national development goals. Vietnamese consumers tend to be cautious about adopting new technologies. They are more willing to try new products once someone in their immediate network has done so, which makes social proof an important factor.

Local expertise and trusted networks open the right doors

During a two-day visit to Ho Chi Minh City, the delegation met several potential market experts to discuss strategies for European companies entering Vietnam. Since European products are often seen as premium and therefore more expensive, careful planning is essential when approaching local customers. Nordic solutions are appreciated because they are associated with quality and innovation, although price negotiations require skill and patience.

The delegation also met representatives from the European Union and Nordic chambers of commerce, including Sweden. These organisations bring together companies with long term experience in the Vietnamese market. Their events are highly regarded by local partners and offer valuable opportunities for networking and establishing new business contacts.

Another highlight was the Vietnam Innovation Summit. Each project team member introduced their country and together they presented an overview of project activities. The accompanying expo provided an opportunity to meet both local and international companies and learn more about their experiences in the Vietnamese market.

Fast agreements and complex negotiations

Vietnamese companies tend to agree quickly in principle and are ready to sign initial documents. The negotiation phase can be lengthy. Cultural nuances often shape expectations and interpretations, which makes it important to clarify every detail. When a Vietnamese company signals readiness to engage, swift action is crucial. Timing plays an important role, and momentum can lead to rapid deal making.

Key takeaways

• A physical presence and strong local partners are essential.
• Business moves quickly when the timing is right. Outside that window progress can slow considerably.
• Vietnam is currently one of the most stable countries in Southeast Asia.
• Business relationships often rely on personal ties. Signing a memorandum of understanding is usually straightforward.
• European companies can succeed by offering high quality and innovative solutions supported by strategic planning.
• The country is safe and welcoming for business.

Ready to explore new markets?

Through the Leap4Growth project, companies from the Central Baltic area can access expert guidance, local networks and the opportunity to join future delegations to Vietnam.

If your company is considering its first steps towards Asian markets, now is an ideal moment to join the programme. A series of market focused webinars is planned for early 2026.

The dates for the next delegation to Vietnam are currently being confirmed. Delegation to Hong Kong will take place in the second part of March, 2026.

For questions or to express interest, please contact Anu Puusaag at anu.puusaag@tehnopol.ee

Register here.

The project is funded by the Central Baltic Interreg Programme.