There are certainly many opportunities for investors to tap over 90 million aspiring consumers with fast-growing incomes. This is underlined by a getting-more-favorable investment climate in which legal framework becomes more comprehensive, flexible, and predictable; which investors from public and private sectors are treated more equally and fairly. On the demand side, the middle and affluent consumers whose income is from VND 15 million (USD 714) and above a month, are not just growing in numbers, but also spreading out to other provinces and cities besides big cities like Hanoi and Ho Chi Minh city (Boston Consulting Group). Also, the minimum wage has been increasing over years, which helps improve the living conditions as well as affect the consumption trend. On the supply side, many foreign investors on different areas such as retail, food, garment and textile, cosmetic, real estate, energy, infrastructure, agribusiness, and electronics have been joining the market.

 

Among many sectors, we have identified four key potential ones that the Peruvian enterprises might be interested in. They are i) seafood materials for processing, ii) fruit and vegetable sector, iii) herbs and natural products, and iv) materials for garment and textile industries. Notice that there are still-negotiating cooperation agreements on these above issues between Peru and Vietnam. Besides, both nations are negotiating members of the Trans-Pacific Partnership (TPP) agreement. Once all of these agreement are finished, they will be expected to open up many opportunities for both Peruvian and Vietnamese firms.

 

Despite all potentials mentioned above, still-low awareness and understanding of the Vietnamese consumers against the Peruvian products and services are the biggest challenges. Difference in culture of doing business and consumption style are worth being studied thoroughly to get into the market.