Seminar seeks ways to enter North American market

The seminar, titled “Vietnamese enterprises entering the North American market: Navigating unforeseen challenges,” was jointly organised by the HCM City Department of Industry and Trade and Saigon Times Magazine.

Statistics reveal that North America represents a massive consumer market, contributing one-third of Vietnam's total export turnover in recent years. In 2023, Vietnamese exports to North America reached remarkable milestones, with the export revenue to the US surpassing US$97 billion, and that to Canada and Mexico each standing at US$5-6 billion.

Nguyen Ngoc Tram, CEO of IPGEEKLAB, a US-based one-of-a-kind IP laboratory, and senior advisor to the intellectual property expert committee at the American Intellectual Property Law Association (AIPLA), emphasised the importance of leveraging traditional multi-tier distribution systems and utilising e-commerce platforms to reach Canadian consumers.

She noted that the country's dispersed population and vast geography present challenges to distribution and delivery.

Tram also highlighted Canada’s stringent labeling regulations, which require bilingual labels in English and French, with detailed information, such as nutritional facts, ingredient lists, and allergen warnings.

For the US, she said the market offers high profit margins and a large consumer base but is fiercely competitive and demands superior product quality. The US legal system, tax structures, and contractual frameworks are complex, while its advanced online sales channels are highly popular among consumers.

Market preferences in the US are defined more by regions than state boundaries, making it difficult for businesses to seek shortcuts, Tram said.

There is no universal formula for success, so Vietnamese enterprises should adopt a practical approach by starting small, testing the market with a focused product lineup, and scaling strategically, she added.

Experts at the seminar underscored the importance of mastering logistics networks as a cornerstone of a professional export strategy.

Vietnamese businesses venturing abroad must adopt a realistic mindset and recognise the stark differences between domestic and international markets. Entering a new market, they noted, is akin to starting a new business - even for companies with domestic success.

To thrive in the North American market, Vietnamese enterprises must redefine their branding with practical, market-specific strategies, they said.

This requires a deep understanding of target markets, combining insights from internal teams, market research, and external experts. Brands should focus on specific customer segments rather than trying to appeal to a broad, undefined audience, they went on.