How Global SMEs Can Overcome Key Barriers to Enter Vietnam in 2025

Vietnam offers one of the most promising opportunities for SMEs globally, with steady economic growth, a youthful workforce, and widening trade agreements. However, entering a new market always brings risk. Below are common challenges foreign SMEs encounter in Vietnam — and practical strategies to overcome them with GTI Partner by your side.

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1. Regulatory & Legal Complexity

Vietnam has made strides in improving its investment climate, but navigating local rules, licensing, and sector-specific requirements can still be a minefield. A recent proposed decree, for example, would expand police screening for projects in sectors like telecommunications or industrial infrastructure. Reuters

What to do:

• Conduct thorough due diligence or feasibility studies before committing capital.

• Engage a local consultant or partner to interpret laws, licensing, and regulatory obligations.

• Monitor ongoing reforms — such as trade and investment policies — as they may open new windows or create new obligations.

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2. Financing & Cost Pressures

SMEs expanding overseas often underestimate the costs involved. From setting up a legal entity, staff hiring, local taxes, to infrastructure — there are many hidden or unexpected expenses. Plus, currency fluctuations or capital access issues can be damaging. ClearSky

What to do:

• Prepare a realistic budget that includes unexpected costs.

• Seek incentive programs (tax breaks, grants) offered by the government or local authorities. Vietnam has special economic zones and industrial parks with favorable fees. Vietnam Briefing

• Explore financing options through local banks, or partner with local investors who understand Vietnamese capital practices.

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3. Cultural & Market Understanding

Every market has its own customer behaviors, preferences, decision-making styles, and competitive context. What works in your home country may not translate directly. Lack of local market knowledge is a top reason many SME expansions falter. Startups Magazine

What to do:

• Invest in market research: consumer insights, competitor analysis, pricing sensitivity.

• Build a minimum viable presence (pilot, focus group) to test your product/service.

• Learn local language and digital habits; ensure marketing is localized (not just translated).

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4. Local Operations & Talent

Getting your operations right — hiring, supply chain, distribution, local partnerships — can be just as challenging as legal or cost issues. Finding the right people who know your industry and the Vietnamese market is crucial. GTI Partner

What to do:

• Employ or partner with local experts who understand the regulatory, HR, tax, and cultural landscape.

• Focus on building good supplier networks, logistics, and reliable local partners.

• Use phased entry: start with smaller operations and scale once you understand what works.

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5. How GTI Partner Helps Turn Challenges Into Opportunities

At GTI Partner, we support global SMEs with exactly the resources needed to bridge gaps and reduce entry risk. Our services include:

• Feasibility studies & regulatory advisory so you know the costs and legal steps up front.

• Company formation, tax, and compliance services to set up operations smoothly.

• Sales outsourcing and local representation so you have trusted partners on the ground.

• Market localization support — marketing, consumer behavior, pricing, etc.

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Conclusion

Vietnam is high on opportunity for global SMEs in 2025 — but opportunity without strategy can lead to missteps. By understanding the common barriers and working with partners who have on-the-ground experience, you can enter more smoothly, mitigate risk, and start seeing returns sooner.

Ready to make your entry into Vietnam less risky and more profitable? Contact GTI Partner today for a free consultation to explore how your SME can succeed here.

Thẻ : business challenges foreign SMEs GTI Partner SME expansion vietnam market entry