WHAT IS APAC?
APAC (short for Asia-Pacific) is the region on earth that includes East Asia, South Asia, Southeast Asia, and Oceania. Among these countries, there are more than 3000 languages. India alone has 22 official languages.
Why localize in the APAC market?
The new market opportunity in this region is immense and continues to grow every year, with a growing middle class eager to try new products and services. Important emerging markets in this region include India, Indonesia, Vietnam, and the Philippines, along with older markets such as Australia, Hong Kong, Singapore, China, and Japan.
Over the past three decades, the APAC region has grown significantly based on solid principles, including expanding consumer markets and attracting foreign investment in manufacturing companies. These factors have helped the region to triple its share of world GDP to nearly 40% since 1960, with per capita incomes also rising sharply, leading to the formation of a new middle class and a large number of domestic consumers. The proportion of the population living in poverty has gradually decreased, and with significant improvements in health and education, life expectancy and educational attainment have increased. Technology and globalization have played a key role in this rapid growth, resulting in Asia-Pacific now accounting for more than a third of global trade.
This large region is a great opportunity for brands looking to expand globally. With such a diversity of cultures, religions, languages, and social trends, entering the Asia-Pacific region is a big challenge, but if successful, it will help businesses set foot in a new market. It is huge and promises a lot of business opportunities.
A development opportunity worth seizing – Vietnam Market
The rapid growth of the APAC region makes the region an attractive prospect for companies seeking global expansion. One of the prominent markets in APAC is Vietnam.
Here are the reasons why companies should choose Vietnam when looking for global expansion.
Economy: Stable GDP growth is marking Vietnam as an emerging market and an open economy, welcoming foreign investment. According to the General Statistics of Vietnam, GDP in the first quarter of 2022 was estimated to increase by 5.03% over the same period last year, and this increase was higher than the GDP growth rate of the first quarter of 2021 (4.72%). promises strong resilience after the pandemic.
International Trade: Develop trade agreements with Trans-Pacific Partnership countries and strengthen cooperation with the United States.
Foreign Investment: The Law on Enterprises and Investment favors FDI inflows with the addition of tax incentives. In 2021, despite the complicated development of the COVID-19 epidemic, FDI in Vietnam reached 31.15 billion USD, an increase of 9.2% compared to 2020. This shows that foreign investors are placing an order. great confidence in Vietnam’s investment environment.
Human resources: Currently, Vietnam’s population is about 98 million people, in which the labor force participation rate is about 68.7% (Q1/2021). This is an advantage in terms of the human resources of Vietnam. Vietnam (GSO, 2021). The quality of human resources has increased significantly in recent years.
Expansion: A gateway for international companies aiming to expand further into Southeast Asian countries.
Business practice: The World Bank estimates that Vietnam is gradually improving the business environment to make it easier.
This aforementioned information seems enough to realize the potential of Vietnam Market. Should you plan to expand your market, please take language and cultural features into consideration. Localization may help you a lot during the process.
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