Vietnam is one of the fastest-growing economies in the world, recording a GDP growth of 4.1 percent, with a projected GDP growth to 7.1 percent in 2024. In comparison, Malaysia’s GDP growth in 2023 stood at 3.7 percent and had a projected growth of 5.1 percent in 2024. Vietnam’s economy is primarily driven by three key sectors, which includes agriculture, manufacturing, and services.

The demand for fast-moving consumer goods (FMCG) in Vietnam is on the rise, particularly in health supplements and ready-to-eat foods. The food services industry has also seen a sharp growth, and is projected to be worth over $20 billion in the coming years. The growth of this sector has been attributed to digital transformation, as businesses increasingly adopt mobile payment systems to enhance convenience and efficiency for consumers.

Entering and navigating the Vietnam market requires experience and strategic planning. Given the competitive nature of the market, exporters should conduct market research to have a thorough understanding of the market. Exporters are also advised to study Vietnam’s import regulations, customs procedures, and documentation requirements. Additionally, exporters need to ensure compliance with labelling, safety, and quality standards.

Thailand is a challenging market to enter, but there is a strong demand for ready-to-eat foods, health supplements, healthy foods, and plant-based products. Although the country has strict tariff regulations, Malaysian exporters can benefit from the ASEAN free trade agreement, which eliminates at least 99 percent of tariffs. It recommended that exporters research local consumer preferences; for instance, Thai consumers are price-sensitive and rely on e-commerce to purchase their goods. Exporters also need to localise their brand and adapt their product branding to the Thai language, as most consumers do not speak or read English. To enter the Thai market, exporters are advised to collaborate with a local partner who can provide guidance and assist with documentation, as all documents are in the local language.

Among ASEAN member states, Myanmar was Malaysia’s seventh largest trading partner, export destination and largest source of import in 2024. While the market offers high returns to exporters, there are also significant risks, largely due to the political instability that has disrupted supply chains and regulatory processes. To succeed in the Myanmar market, it is essential for exporters to understand the local culture and business practices. Additionally, partnering with a reliable local partner is highly recommended to help navigate this challenging market.  

For enquiries, please contact:

MATRADE Vietnam
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MATRADE Bangkok
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MATRADE Yangon
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References
MATRADE Webinar (Growth Beyond Borders: Navigating Across Vietnam, Thailand And Myanmar Market)