Vietnam Market Entry Services Help SMEs Overcome Barriers

Entering Vietnam’s HoReCa market offers enormous potential for international SMEs looking to expand in the fast-growing foodservice and FMCG sectors.

With a market size of nearly USD 22 billion in 2024 and projections to more than double by 2033, HoReCa is often the first channel chosen for product testing and brand building.

Yet, the path is not without challenges—high operating costs and strict compliance requirements can quickly derail expansion plans. This is where Vietnam Market Entry Services become critical, helping SMEs reduce risks and accelerate success.

The crowded dining scene illustrates why Vietnam’s HoReCa market is a strategic gateway for international SMEs

Vietnam’s HoReCa market overview

Vietnam’s HoReCa (Hotel – Restaurant – Catering) sector is becoming a critical gateway for international FMCG brands. With a market size of nearly USD 22 billion in 2024 and projections surpassing USD 54 billion by 2033, HoReCa provides opportunities for direct product testing and brand building through customer experience.

For SMEs, however, entering this channel is not straightforward. The cost of operations and the pressure of compliance remain the two biggest barriers.

The cost challenge of entering HoReCa

1. Expensive operations

To access HoReCa, businesses must invest in:

• Logistics and cold chain systems to guarantee food safety.

• Sales teams and relationships with hotels, restaurants, and cafés.

• Marketing budgets for trade promotions and consumer pull.

For SMEs, these costs are often beyond reach in the early stage. Almost half of F&B operators in Vietnam expect to increase prices due to rising costs of raw materials, labor, and rent.

2. Opportunity costs

Some international brands that tried to build their own distribution networks spent 12–24 months before achieving results. In a market growing over 9% annually through 2033, such delays mean losing competitive advantage.

3. The optimal solution

Instead of building from scratch, SMEs can leverage Sales Outsourcing Vietnam and especially Vietnam Market Entry Services. This approach follows a “sales-first then marketing” strategy—focusing on revenue first before investing heavily in brand marketing.

High operational, sales, and opportunity costs make HoReCa entry challenging, pushing SMEs to seek smarter market entry solutions.

Compliance pressures in Vietnam

1. Sugar-sweetened beverage tax

Under the revised excise tax law, sugary drinks with more than 5g per 100ml will be taxed 8% from January 2027 and 10% from 2028. This forces beverage brands to rethink pricing and formulations.

2. Food safety and labeling

Vietnam’s supply chain is fragmented but increasingly requires:

• Food safety certifications, COA/CO, and Vietnamese labeling.

• Digital traceability systems and reliable cold chain operations.

• Consistent supply capacity, especially during tourism peaks.

  
  

3. Risks without local partners

Without a local distribution partner, SMEs risk delays of several months in regulatory approval, which slows down their go-to-market strategy.

Why SMEs need Vietnam Market Entry Services

Vietnam Market Entry Services – core benefits for SMEs

For international SMEs, Vietnam Market Entry Services deliver three key advantages:

1. Cost savings – avoiding heavy upfront investments.

2. Regulatory compliance – navigating excise taxes, labeling, and food safety.

3. Faster expansion – direct access to HoReCa while connecting to MT and GT.

Combining with Go2Market (G2M) Vietnam

The Go2Market (G2M) Vietnam model enables fast Vietnam market entry by outsourcing sales, testing products in HoReCa, and expanding to other channels once traction is achieved. This “fast entry, lean investment” model is increasingly popular among SMEs.

Go2Market Vietnam offers end-to-end Vietnam Market Entry Services, helping SMEs overcome costs and compliance barriers.

Strategic implications for SMEs

• Start with HoReCa: use the channel to validate products and create brand pull.

• Leverage Vietnam Market Entry Services: minimize costs, ensure compliance, and shorten time-to-market.

• Prepare for regulatory shifts: adapt recipes, packaging, and logistics to meet new tax and safety requirements.

• Work with an end-to-end distribution partner Vietnam: streamline operations from sales to legal to marketing.

  
  

Strategic takeaways for SMEs in Vietnam’s HoReCa market

The Vietnamese HoReCa market is a promising gateway for international SMEs, but also carries risks in costs and compliance. Only those that adopt a smart strategy—balancing cost efficiency with Vietnam Market Entry Services—will unlock the full potential of this fast-growing market and build sustainable brands in Vietnam.

With guidance from Go2Market (G2M) Vietnam, SMEs can reduce market entry costs, ensure compliance, and create a scalable foundation for long-term success in Vietnam’s HoReCa sector.