HCMC – Vietnamese companies should focus on strengthening their position in the domestic market before pursuing overseas expansion, business executives said, arguing that Vietnam’s large population and still-developing consumer market offer greater near-term opportunities than foreign markets.
The comments were made at the Vietnam Vanguard Summit in HCMC on January 7, where senior leaders from government, business, finance and technology discussed Vietnam’s growth trajectory as it aims to become a US$1 trillion economy.
“The value creation is here,” said Olivier Langlet, group CEO of Central Retail Vietnam, explaining that most value creation for Vietnamese firms remains domestic at this stage of development.
Companies often underestimate the challenges of operating abroad, including differences in consumer behaviour, communication styles and business culture, according to Langlet.
Vietnam’s consumer market is still maturing, he said, and many segments are not yet ready to support rapid or premium-led expansion.
Modern retail penetration in Vietnam stands at about 13%, compared with around 55% in neighbouring Thailand, highlighting significant room for growth within the domestic market.
Langlet added that many international brands entering Vietnam struggle to reach profitability because spending per capita remains insufficient for certain product categories.
Nguyen Lam Thanh, general director of TikTok Technologies Vietnam, agreed on this view, stressing that domestic scale remains a key advantage for Vietnamese businesses, especially smaller and more agile firms. “100 million people is also huge,” Thanh said. “We have to focus on the domestic first.”
According to Thanh, large Vietnamese companies do not necessarily find it easier to succeed abroad, while smaller teams can adapt faster and capture niche opportunities.
Meanwhile, Jesse Choi, regional director for Sunwah Southeast Asia at Sunwah Group, said Vietnamese firms should also benefit from foreign companies expanding into Vietnam, rather than focusing solely on outbound expansion.
Chinese and other international firms setting up factories in Vietnam require local partners, particularly in software, localization and supply-chain services. Vietnamese companies can grow by serving these investors within Vietnam rather than focusing only on exporting or establishing overseas operations.
For example, Central Retail sources about 95% of its roughly 60,000 stock-keeping units from domestic producers and will continue to rely on local supply regardless of global trade disruptions.
Vietnamese manufacturers have shown resilience in recent years by adapting business models quickly, though consumption growth in mass retail remains more moderate than overall economic growth.
On exports, Vietnam has strong agricultural products but lacks consistency in quality, packaging, traceability and compliance needed to compete internationally at scale, Langlet said. He suggested firms should first invest in improving production standards and meeting domestic consumer expectations before targeting foreign markets.
Executives also highlighted compliance as a key requirement for sustainable growth. Inconsistent quality and weak compliance remain obstacles to modernising production. For small and medium-sized enterprises, compliance is the most urgent issue this year, while partnerships, rather than direct competition, will matter most over the longer term, according to Thanh.
The panel shared a view that Vietnam’s domestic market offers the most practical path for companies to build scale, professionalize operations and strengthen resilience before considering overseas expansion.
