Channels of Distribution
When it comes the distributing its goods, Vietnam practices what seems to be a traditional way of moving its business. The International Enterprise in Singapore wrote the Vietnam’s distribution of goods uses traditional methods such as “drug stores, modern pharmacies, supermarket chains and convenience shops”. Concluding 70 percent of the distribution and sales of common goods. These good are distributed in various ways, Foreign Logistics Firms concluded that currently, roads and ocean are the largest subsectors in Vietnam. Road shipping is mostly handled by domestic firms. For example, Unilever is one of the larger distribution firms in Vietnam utilizing roads and railways, (Foreign Logistics Firms). Using eighteen wheelers in order to dispersed the goods.
Leading in to; the inland waterways are also a main source for distributing goods. Throughout Vietnam there are over 25,000 miles of rivers and waterways, of which are a large form of transportation for heavy goods. World Bank found that in 2003 83,000 boats and barges were used to move a total of 3.7 million tons of dead weight. Distributing goods such as coal, rice, sand, stone and gravel. Most of which are carrying the goods to cement plants and paper mills. But these waterways are not just freely for commercial use, World Bank also states that roughly 5,000 miles of the inland waterways are for commercial use only. The state owned enterprises known as the Ministry of Transport Northern Waterway Transport Corporation and Southern Waterway Transport Corporation control and oversee the movement of commercially transported of goods. Though, foreign companies may also provide transportation services but allowed only through joint ventures. But the proc...
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...usiness partners. In a country like Vietnam, where ethical codes and value had deeply imbedded its roots, powerful friends can stretch a long ways. Rather than being the foreigner breaching the market which could be taken as hostile; respecting and understanding that age holds a powerful position could work to the benefit.
Once the networking system has gained successful partners, cold calling would be the next plan of action. With the supports of the networking system, going door to door or even making blind phone calls is the best way to gather information of the market. For understanding the areas of need and growth is an essential part of conducting business. Conducting business is merely a successful marketing plan and innovation. With a country such as Vietnam rapidly growing, the market is asking for improvement and growth to assist and enlarge the process.
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