Exporting and Importing Success with Vietnam

Summary

There are many items that go into a successful import/export strategy.  One of the greatest components of the strategy may be to bring the right product or service to the right market at the right time.  This paper will help to expand the envelope.

Exports/Imports to/from Vietnam, Canada, and the European Union (EU)

The chart above shows that it is important to understand that even though one country may have main exports of a certain type, that isn't the only product the receiving country is importing.  While Canada is exporting minerals and telephone equipment, the European Union (EU) is exporting electrical equipment and machinery to Vietnam.  Conversely while the EU is importing footwear, knitted goods, and coffee/tea; Canada is importing footwear, seafood, and clothing.  The only products in common are the imports of footwear to Canada and the EU.

A company looking to build a business case to import or export from or to Vietnam should first seek to understand the market they wish to serve and then how their product can serve that market.  They can then move forward to develop their plan.  The following excerpt from Export 911 helps to build a greater understanding of how a company can be successful at exporting and importing.

Elements of Global Marketing Success

To be successful, it helps to know why so many export businesses do not succeed. Success cannot be rushed by high hopes. Rather, it comes incrementally.

Good Planning and Realistic Goals

Good planning and realistic goals are the primary keys to export and import success. An export plan is a road map used in reaching export goals.

In the case of exporting to offshore countries, new exporters must avoid the high expectation of completing a deal within the first three or four months of export operations. High expectations can breed profound frustration. It is not uncommon for export business deals to take more than six months to finalize. Some even take years.

Depth of Understanding the Foreign Cultures and Business Practices

The depth of understanding the foreign cultures and business practices separates export success from failure. Culture is not bad or better, it is merely different. Culture influences the product and service requirements and the business practices. Some business practices that are acceptable in the exporting country may not be acceptable in the importing country.

Reliability, Patience, Perseverance, and Hard Work

Without the buyers' trust, success would be impossible to achieve. Winning the confidence of the buyers is more important than quoting competitive prices. Be careful about the export commitment, stick to it once it is made. Broken promises erode trust. Reliability in fulfilling the contracts on time and at the desired level of quality is the best advertising tool.

Export endeavour is a continuous struggle for survival. It is full of ups and downs. It requires patience and perseverance. Being patient and persevering in the export endeavour is frequently rewarded disproportionately with sales contracts.

The success of an export business is often attributed to luck. Work harder and there will be more luck. The export success of Taiwan, China, Japan, South Korea, Germany and other countries (areas) is not a miracle, it is the result of hard work. The business miracle will not happen without working hard. However, success cannot be rushed by hard work.

Flexibility in the Product Modifications

Product requirements, like business practices, vary from country to country. Some products that sell well in the domestic market may not sell in foreign markets. Reasons for this could be different packaging and labelling requirements, specifications or consumer tastes. Product modifications, for example a change in the surface finish of a brass souvenir from the chrome-plating to the bronze-plating, can be costly in some countries. Some exporters may shun deals whenever product modification is involved.

Product modification is often necessary to meet foreign packaging and labelling requirements. Flexibility in meeting required modifications is essential to export success.

First to Identify the Emerging Needs

World markets change rapidly. Consumer needs for products and services change continually. For exports to be successful, it is vital to identify emerging consumer needs early and to offer product and service improvements to satisfy those needs. It is important to spot a new trend early and then lead it.

Sufficient Financial Resources

The up-front cost of exporting usually is high. It takes more time and resources to develop export markets. The payback can take longer, depending on the export market and the method and terms of export payment. Sufficient financial resources are necessary to sustain the export operation and to achieve export goals.

Winning Attitude

Have a winning attitude and the export business is more likely to succeed. Avoid misinterpreting over-optimism for a winning attitude. Over-optimism breeds irrationality. Irrationality leads to unrealistic goals. A winning attitude is a positive way of thinking and of doing things. It helps in winning the buyers' confidence in the exporter.

Making Sense of it All

All of this may seem like good sense and it is good sense.  The tough thing to remember is to keep that good sense in mind - even when the going gets tough.  When you are considering a product that you want to export or import, don't rely just on the top imports or exports of a country.  Rely on market research.  If you don't know anything about a particular market - get in touch with someone who does and find out whatever you can about that market.

For example toothpicks are not listed on the top three exports or imports to and from EU, Canada, or Vietnam but there might be a great toothpick trade going on.  You might have found a great store of toothpicks in the EU and there might be a great need for them in Vietnam - but that won't show up on charts.  That is why you need to understand the industry (the toothpick industry in this case) and the market (the Vietnam market in this case).  Seek out and work with people and businesses that can fill in the missing information and you too will have a better chance at being successful.  Don't be afraid to partner with companies or people you trust but be aware of the risks.  If you minimise the risks and take full advantage of the opportunities you are more likely to be successful in your venture.