Breaking into Emerging Markets: Vietnam as a Strategic Gateway in ASEAN
For Singapore SMEs exploring overseas expansion, Vietnam stands out as one of Southeast Asia’s fastest-growing economies, full of untapped potential and promising returns. With a young population, increasing consumer spending power, and rapid digitalisation, Vietnam offers compelling opportunities for Singapore businesses across various sectors.
Through the Market Readiness Assistance (MRA) Grant, eligible Singapore SMEs can receive co-funding support to ease the financial burden of entering the Vietnamese market. This article will explore why Vietnam is a strategic choice for internationalisation, how the MRA Grant supports this journey, and how working with a grant consultant can improve your expansion outcomes.
Why Expand into Vietnam?
1. Rapid Economic Growth
Vietnam has posted strong GDP growth over the past decade, averaging 6–7% annually. This growth is supported by its participation in major trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).
Such a stable and expanding economy provides fertile ground for Singapore SMEs to grow their international presence.
2. Young and Digitally Connected Population
With over 98 million people and a median age of just 32, Vietnam boasts a large consumer base that is increasingly tech-savvy and brand-aware. The country has a high smartphone penetration rate, and e-commerce is booming, making it a strong market for digital businesses, e-retailers, fintech firms, and lifestyle brands.
3. Growing Demand for Singapore Expertise
Singapore is regarded positively in Vietnam for its high standards in education, healthcare, urban planning, and technology. Businesses that can offer solutions in these areas are well-positioned to establish credibility and market traction quickly.
Sectors Where Singapore SMEs Thrive in Vietnam
1. Education and Enrichment
Vietnam’s middle class places a high value on education. Singapore enrichment centres, language schools, and tuition providers can thrive by offering premium and curriculum-based learning options.
2. Technology & SaaS Solutions
Vietnam is actively developing its digital economy. Singapore-based IT, cybersecurity, and software development firms can tap into this growth by providing B2B SaaS or digital transformation tools to local enterprises.
3. Healthcare and Wellness
Healthcare standards are improving in Vietnam, and consumers are spending more on wellness, beauty, and preventive care. Clinics, health supplements, and skincare brands from Singapore are well-received.
4. Consumer Retail and E-commerce
From fashion and lifestyle products to food and beverage franchises, Vietnam’s consumer class is embracing global brands. Singapore SMEs with a strong online presence can gain market share via localized e-commerce platforms.
How the Market Readiness Assistance (MRA) Grant Helps
The MRA Grant provides up to 50% co-funding, capped at S$100,000 per new market, for eligible activities that support market entry. Vietnam qualifies as one of the 14 target markets eligible under the MRA scheme.
The grant covers:
- Overseas Market Promotion:
Includes digital marketing campaigns, online advertisements, and participation in Vietnamese trade exhibitions or pop-up stores. - Overseas Business Development:
Covers business matching, in-market lead generation, and support in identifying local partners or distributors. - Overseas Market Setup:
Includes legal and tax advisory, incorporation costs, and IP protection services.
Challenges in Expanding into Vietnam
Despite the many advantages, entering Vietnam without a plan can be risky. Here are some common challenges that SMEs should prepare for:
1. Complex Bureaucracy
Business registration and licensing in Vietnam can be time-consuming and differ depending on the industry and city. Delays and red tape are not uncommon, so it’s important to understand regulatory requirements.
2. Language and Cultural Barriers
While English proficiency is improving, many business discussions still happen in Vietnamese. Miscommunication can be a risk without proper translation and localisation support.
3. Partner Reliability
Finding the right local distributor or joint venture partner is critical. Without due diligence, SMEs may end up in unproductive partnerships.
4. Different Business Norms
Vietnamese business culture emphasizes relationships (or guanxi), hierarchy, and face-saving. SMEs must invest time in building trust and understanding local etiquette.
The Role of a Grant Consultant in Your Vietnam Expansion
A grant consultant can play a pivotal role in helping you leverage the MRA Grant effectively for Vietnam. Here’s how:
- Assess Eligibility and Strategy Fit:
Evaluate your company’s goals and determine if Vietnam is the right fit based on sector demand, budget, and timing. - Structure the Application:
Prepare a compelling MRA proposal that aligns with Enterprise Singapore’s guidelines, increasing approval likelihood. - Vendor Coordination:
Help you connect with qualified service providers in Vietnam, such as market research firms, branding agencies, and legal experts. - Claim Submission Support:
Guide you through the post-project documentation and disbursement phase, ensuring all invoices and proof-of-work meet ESG standards.
Steps to Apply for MRA Grant for Vietnam Expansion
- Identify Business Goals – Define what success looks like in Vietnam (e.g., X number of partners, online sales revenue, store launch).
- Engage with Service Providers – Get quotations and scopes of work for eligible MRA activities.
- Prepare Application Documents – With your grant consultant, complete the forms and supporting documents.
- Submit via Business Grants Portal (BGP) – Await Enterprise Singapore’s assessment and approval.
- Execute the Project – Carry out your marketing, research, or setup tasks.
- Submit Final Claim – With detailed documentation, including reports, invoices, receipts, and proof of deliverables.
Real-World Example: Singapore EdTech Firm Entering Ho Chi Minh City
A Singapore-based EdTech company used the MRA Grant to enter Vietnam by:
- Conducting market research to identify suitable age groups and subjects
- Partnering with a local education agent
- Launching social media campaigns targeted at parents in Ho Chi Minh City
- Securing a pilot enrichment program in a local school
With the MRA covering 50% of the total cost, the business could validate its concept with minimal upfront risk.
Final Thoughts: Seizing Growth in Vietnam with MRA Support
Vietnam is not just another emerging market — it’s a strategic gateway to the greater Indochina and ASEAN region. With the right guidance, SMEs from Singapore can navigate this market’s complexity and reap long-term rewards. The Market Readiness Assistance (MRA) Grant offers financial support to help your business expand with confidence.
By partnering with a grant consultant familiar with Vietnam’s local dynamics and the MRA framework, you position your business for a smoother, faster, and more effective entry into one of Asia’s most exciting markets.