All eyes these days are on Vietnam -- a densely populated developing economy with a young, abundant labour force, strong manufacturing sector, stable political system, low inflation, stable currency and steady foreign direct investment (FDI) inflows.
A multitude of opportunities await investors who understand the economic and social dynamics at work in the country of 96 million people, say experts from Ipsos Business Consulting.
Gross domestic product (GDP) in Vietnam expanded by 7% last year, its fastest rate in a decade, with growth of 6.6% this year, moderating to 6.3% annually until 2023.
"Vietnam is among the fastest-growing economies in the region with a focus shifting to manufacturing and service sectors. The country is in a transition period with more established infrastructure and has great potential to be captured at an early stage," said Phong Quach, country manager for Ipsos.
Quality of life and average incomes have improved substantially, reflecting the country's shift from a highly agrarian economy to an industrial and market-based economy since 1986.
"An average of 1.5 million Vietnamese joined the global middle class each year since 2014. Initiatives to shift the export structure to higher value-added products transforms Vietnam to a trade surplus country since 2014," said Mr Quach.
Last year, the country attracted US$17 billion in FDI commitments, led by manufacturing, services, agriculture and travel businesses.
"Vietnam has transformed into an FDI-driven country. The favourable business environment has helped Vietnam surge in FDI inflows, especially in manufacturing," he added.
Vietnam has 12 free trade agreements (FTAs) and 66 international free trade treaties that have helped it to integrate with the global economy and brought opportunities for both the local private sector and foreign businesses.
Increased access to international markets also makes the country an attractive destination for foreign investors seeking to distribute products abroad.
Earlier this year, Vietnam officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an 11-country pact that also includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore. Its members are home to 495 million people and represent 13.5% of global GDP.
Vietnam also benefits from free trade within Asean, and from bilateral agreements with the United States and the European Union.
Each region of Vietnam also presents unique opportunities for various industries as administration is decentralised to a significant degree, according to Ipsos.
"Provincial authorities can apply different schemes for investors," said Mr Quach. "This means each province can have its own interpretation and freedom to deal with businesses on its own.
"All the things you see on the internet, all the regulations, you can always negotiate more."
On the consumer side, there are certain characteristics that can be generalised in Vietnam, such as the hierarchical system and family values, according to Ann Suwanjindar, senior client officer of Ipsos Thailand.
"Vietnamese society has a very strong system of values which really dictate how people behave in society," she said. "The people are nationalistic and increasingly educated. They are industrious and ambitious as they often come from low-income families and are striving to be better in the future."
The country overall is still highly hierarchical, with young people expected to be obedient and respect their elders. Children are supposed to take care of older generations to show gratefulness for their birth and upbringing, she said.
Generally, she says, Vietnamese people are friendly and highly sociable. Social acceptance is quite important and they care quite strongly about their status and appearance. Young people in urban areas tend to be more open and willing to try new things, while the rural elderly are more reserved and sceptical.
However, the culture, lifestyle and cuisine of Northerners and Southerners are still strikingly different despite unification since the end of the Vietnam War in 1975.
"The South is seen as the launching pad for Vietnam because consumers are more open to change and more willing to try new things. They are more open and less brand loyal and they would look for new technology and experience new processes and new way of life."
The young, in particular, are very keen to use social media as a way to express individualism and their identity, she said.
"However, while it is easier than in the North to capture consumers because of the acceptance level, Northerners have hidden spending power and tend to be more loyal."
Internet access in Vietnam has improved dramatically and people are more active on social media with high smartphone penetration. The country has over 70 million unique mobile users and 55 million active social media users.
The internet, therefore, has become the go-to channel for promoting products and services. Utilising word-of-mouth and key opinion leaders has been proved to propel success for many campaigns.
"Mass communication channels are quite expensive for fast-moving consumer goods," said Ms Ann. "Going digital with highly targeted campaigns and niche segments has been effective and many have gone viral. This is a channel that is quite useful and cost-effective in Vietnam."
In addition, she says, emotional appeals rather than functional positioning are also more effective as Vietnamese people are more curious and less discriminating. Emotional branding, therefore, can touch hearts and help differentiate a brand from its competitors.