Working With Distributors In Vietnam. Detailed Guide

Vietnam is one of the fastest growing countries in Southeast Asia in terms of economic development. It has favorable and well-established business environment with a lot of opportunities for both domestic and foreign companies. What is more, recently, UsNews published report, according to which Vietnam was the 7th among the best countries to start business. But if you haven’t got established presence in Vietnam, cooperating with a distributor will be the most efficient way to enter the market. In this article we are going to tell you about benefits of working with distributors in Vietnam and how to find appropriate one.

Benefits of working with distributors in Vietnam

1.Use of the current network of your distributor

Distributors typically have rich experience in selling different brands within the country. Thus, they have already built up a large network. After you establish partnership with distributor, your products will easily and quickly reach end consumers.

Such supermarkets as VinMart, Big C, 7-eleven have established their presence in big cities. These supermarkets work with distributors to sell imported goods, especially in the FMCG sphere.

2.Access to numerous sales channels

An experienced distributor can easily help you import the products and get access to a lot of sales channels. We can compare it with cross-border e-commerce platforms where you get access to the single sales channel.

Take Lazada as an example. There it is forbidden to sell food and supplements cross-border. Selling perishable food cross-border is extremely difficult as you have to assure refrigeration and pay the higher logistics expenses.

But thorough working with a reputable distributor, you will get an opportunity to sell both online and offline, which is beneficial for B2C segment. Although online sales are not as common for B2B sales, the distributor can sell your products to supermarkets, hotels, stores, and so on.

3.Main contact in Vietnam

Distributor is your main point of contact in the country that will manage all the sales for numerous end customers. This is time-consuming and reliable in terms of managing the selling process.

The distributor should not only be well-versed in the sales and marketing process, but also in assuring customer satisfaction. This can be particularly difficult for a company that has little or no experience in the Vietnamese market.

4.Product registration

Your distributor is aware of all requirements of importing food products in Asia. So, you can benefit from its knowledge and experience in registering products. This process includes registrations with the customs, facility inspections, product labeling, etc.

The registrations process itself is on a tedious task and may lead to problems during selling the products. Thus, this should be regulated by you and the distributor, that assures you have the right paperwork in place.

What to consider before signing a contract with distributor

Sales network

The distributor should have a large distribution network so that your products will be sold in large volumes. But it’s also important for you to be aware about what exact retailers the distributor sells your products to. You should also review the number of stores the distributor provide products to, the brands distributed, and annual sales volumes.

Many distributors are present on e-commerce platforms ass well. In this case you should check what platforms it is active on, clients’ reviews, customer service, and speed of delivery.

Geographic presence

Sometimes a distributor focuses on the certain regions. Conduct a market analysis to select a distributor and understand where the biggest sales potential is. Besides, it is highly recommended researching the competitive landscape, market trends, and applicable regulation in the particular region.

Awesome products Co.

Awesome products Co. is a Vietnamese distributor that can help you to start business in Vietnam and sell your products here.

We offer such services as comprehensive FMCG marketing support including merchandising, promo activities, and on-shelves promotions.

Awesome products Co. can also help your company to enter major marketplaces in South East Asia, Europe, and North America. We have a rich experience of selling our brands on Lazada, Shopee, Tiki, Sendo, and Amazon in different countries. We also cooperate with large supermarket chains like Big C, AEON, 7-Eleven, and many others.
Contact us and start your business in one of the most promising country in Southeast Asia!