Export Marketing Guidelines for Vietnamese Craft Exporters

DEVELOPING INTERNATIONAL MARKETS FOR
HOME ACCESSORIES AND GIFT ARTICLES
Export Marketing Guidelines for Vietnamese Craft Exporters
Export Marketing Guidelines for Vietnamese Craft Exporters
Prepared for: VIETRADE/ITC/WTO/UNCTAD
2
Export Marketing Guidelines for Vietnamese Craft Exporters
Table of Content
Page
Preamble 3
1 Are you Ready to Export? 4
1.1 Market Analysis (External Analysis) 4
1.2 Company Analysis (Internal Analysis) 9
1.3 SWOT Analysis 11
2 Market Entry Strategy 12
3 Preparing a Professional Presence 14
3.1 Marketing Material 15
3.2 Professionalize your Staff and Communication 19
3.3 Professionalize your Company Operations 21
3.4 Understanding Market Requirements to Improve your Presentation 23
4 Preparing Products for Export 24
5 Export Costing, Pricing and Invoicing 28
5.1 Export Costing and Pricing 28
5.2 Quotations and Proforma Invoices 31
5.3 Terms of Sale 33
5.4 Methods of Payment 34
6 Trade Fair Participations 38
6.1 Selecting the Right Trade Fair 39
6.2 Trade Fair Preparations 40
6.3 Participation Costs 42
6.4 At the Trade Fair 43

6.5 After the Trade Fair 44
7 Export Documentation and Shipping 45
8 Dealing with Claims 47
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Export Marketing Guidelines for Vietnamese Craft Exporters
9 Appendixes 48
Preamble
Vietnam is a land of handicrafts
1
thanks to the hardworking and creative Vietnamese people.
Fine Vietnamese handicraft articles are exported to over 120 countries worldwide. Products
such as ceramics, lacquer, wooden wares, bamboo and rattan products, textile, embroidery etc.
are nowadays becoming popular throughout the world as home accessories, home decor and
gifts.
Vietnam has been extremely successful in exporting craft products during the last few years. It
is estimated that 1.35 million inhabitants earn a living from producing or trading with crafts,
generating an export turnover of almost 600 million USD per year. However, if compared with
the consumption of home accessories and gifts in the world, the above figure only accounts for
less than 1% of the market volume. There is still tremendous potential for further export
increases.
These Export Marketing Guidelines are a manual which aims to provide practical and
comprehensive information to a large number of Vietnamese craft exporters. The Export
Marketing Guidelines serves the needs of both current and potential crafts exporters, showing
them how to enter and get a firm foothold in the world markets in the context of global
competition.
The authors thank all parties concerned who assisted in preparing the guidelines, notably the
Vietnam Trade Promotion Agency (VIETRADE) and the International Trade Center (ITC)
project team in Hanoi and Geneva.
Prepared by


Handicraft Research and Promotion Centre, Hanoi, Vietnam (www.hrpc.com.vn)

IDC – International Development Consultants, Aachen, Germany (www.idc-aachen.de)
Copyright
The information provided is aimed at assisting handicraft producers, exporters and business support
organizations in Vietnam. It may, therefore, not be used for re-sale, the provision of consultancy services and
other commercial purposes. For utilization of this information on a non-commercial basis, the condition applies
that VIETRADE is referred to as the source of the information. All other use is prohibited, unless explicitly
1
The handicraft articles covered in these marketing guidelines are defined in Appendix No.1
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Export Marketing Guidelines for Vietnamese Craft Exporters
approved in writing by VIETRADE.
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Export Marketing Guidelines for Vietnamese Craft Exporters
1
Are you Ready to Export?
1.1 Market Analysis (External Analysis)
To decide if your company is ready to export, first of all assess markets in order to identify
opportunities in the most suitable markets. Then assess to what extent your enterprise is capable
of taking advantage of the opportunities identified in the market analysis.
There are a number of promising markets for Vietnamese crafts in the world and it may cause
some difficulties for you to decide where you should focus your efforts. In general, you can use
the following step-by-step approach.
Step 1: Screen potential markets

Obtain trade statistics about handicraft imports in various countries and Vietnamese exports.
The General Statistic Office of Vietnam (presently located at No.1A Hoang Van Thu Street,
Hanoi) is the best place to find these sources of information, even for your individual
product (product codes according to the Harmonized System). Some information about

different major export markets is included in Appendix No.2 .

Identify 5 to 10 large and fast-growing markets for your products. Look at them over the
past three to five years.

Identify some smaller but fast-emerging markets that may provide particular opportunities.
If the market is just beginning to open up, there may be fewer competitors than in
established markets.

Target three to five of the most promising markets for further assessment. Consult with
experts, the Vietnam Trade Promotion Agency (VIETRADE) and others to help refine
targeted markets.
Step 2: Assess targeted markets

Identify importers, wholesalers and other main players in the market. Make yourself
familiar with distribution channels and business practices.

Identify the market segmentation by users (on demographic criteria, on customer
preferences, by price/ quality, etc). Who will want to buy what you can make and why?
What is their lifestyle, where do they live, what kind of products do they usually buy?

Examine price level and market trends for your company’s products as well as related
products. Ascertain the current supply sources, particularly with regard to major foreign
countries the firm is competing against.

Check market entry barriers (tariff or non-tariff) for the product being imported into the
6
Export Marketing Guidelines for Vietnamese Craft Exporters
country.


Identify incentives that are given by the Vietnamese government to promote exporting of
your products to these markets.

Examine shipping costs from your main ports to the target markets.
A company may research a market by using either primary or secondary data resources. When
conducting Secondary Research (desk research), a company collects data from compiled
sources, such as trade statistics for a country or a product. Working with secondary sources is
less expensive and helps the company focus its marketing efforts; as a result, most small
businesses begin researching their markets using secondary market information. Although
secondary data sources are critical to market research, they do have limitations. For example,
the most recent statistics for some countries may be more than two years old, product
breakdowns may be too broad to be of much value to a company, etc.
Popular sources of secondary data research include:

Trade associations

; for websites see Appendix No.3. There is a lot of information on market
statistics, up-to-the minute industry news, trade fairs, importers, and expert analyst opinion
which is provided by these associations.

The General Statistics Office of Vietnam (GSO) or other national statistic offices

; for
websites see Appendix No.4. Note that, for the effective search of data from statistic offices,
you should know well the Harmonized System (HS) codes of your products.

Trade journals and trade press

; for websites see Appendix No.5. These sources can be a
good indication of products which are in fashion (like for example “Tableware

International”, a leading journal on the international table and giftware).

Books

on the home decor, home furnishings and handicrafts sector. Many of these books
can be found at the library of the Vietnam Handicraft Research and Promotion Center
(www.hrpc.com.vn), or you can buy them at bookshops in Hanoi and Hochiminh City. Most
of them can be bought through websites like www.amazon.com, www.barnes& noble.com,
etc.

International research agencies

like Euromonitor (www.euromonitor.com), KeyNote,
Datamonitor (www.datamonitor.com) and Mintel (www.mintel.com), where you can find a
lot of information on markets, consumers’ lifestyle etc.

Trade agencies

, like VIETRADE, Japan External Trade Relation Organization (JETRO), the
Center for Promotion of Imports from Developing Countries (CBI, the Netherlands), the
International Trade Center (ITC), Chambers of Commerce and Industry etc.. Here you can
find information on market surveys (segmentation, consumption, competitors, entry
requirements), market trends, statistics etc. For websites see Appendix No.6.

Sector-related trade fair websites

indicate new trends and often contain complete contact
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Export Marketing Guidelines for Vietnamese Craft Exporters
information about leading market players. For websites see Appendix No.7.


The websites of trend-setting international companies and important fashion companies give
good insight into new color trends. In general, a website search of main importers in target
markets can increase your knowledge about product portfolios, designs, prices used in the
target market.

Information about upcoming trends and colors in the EU, Japan and US market can also be
taken from the “Trend Forecast” of CBI (www.cbi.nl), the Swiss Import Promotion
Programme SIPPO (www.sippo.ch), Japan Fashion Association (www.japan fashion.or.jp),
Trend Curve’s (www.trendcurve.com).
Buying or commissioning market research reports can be expensive. For a fraction of the cost,
and mostly even free of charge, much of the same information can be gathered from the
Internet. The Internet is one of the most important ways in which an exporter can obtain market
information. You can find almost everything there by using search engines like Google
(www.google.com) and Yahoo (www.yahoo.com). The Google search tools ‘froogle’ and
‘catalogues’ are extremely useful for product design and pricing. ‘Froogle’ shows photographs
of products and their prices ‘Catalogues’ is a directory of over 6000 scanned catalogues with
images of products and prices (; ).
In conducting Primary Research (field research), a company collects data directly from the
foreign marketplace through interviews, store checks, trade fairs, and other direct contact with
representatives and potential buyers. Primary market research has the advantage of being
tailored to the company's needs and provides answers to specific questions. You can cover some
of the missing information in your desk research, and you may become aware of hidden feelings
people have towards your company, country or product. Even if statistics show a growing
market, field research can be crucial to make the final decision on whether or not to go, and if
so, how to do it, etc. The field research should be conducted after desk research to confirm the
findings of the desk research and fill information gaps.
Popular sources of field research include:

Discussions with handicraft companies/exporters who have similar export products


Discussions with potential buyers or sourcing agents in Vietnam

Information from trade promotion organizations (VIETRADE, www.vietrade.gov.vn,
JETRO, www.jetro.go.jp, KOTRA - Korean Trade Investment Promotion Agency,
, AMCHAM - American Chamber of Commerce, etc.), and private sector
development projects in Vietnam (JICA - Japan International Cooperation Agency,
www.jica.go.jp/vietnam, VNCI - Vietnam Competitiveness Initiative, www.vnci.org, GTZ,
www2.gtz.de/vietnam/ etc.)
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Export Marketing Guidelines for Vietnamese Craft Exporters

Contact with Vietnam’s Embassies, Consulates, Trade Centers in foreign countries

Discussion with forwarding agencies or shipping companies (see appendix No.8)

Trade fair visits in your target markets or other trade fairs that are close to Vietnam like
Hong Kong, Thailand, China, and Japan.

Store visits in your target markets to check trends, prices etc (see appendix No.9).
Besides assessing market size and identifying key importers, market research should also
include getting an idea of market entry requirements, competition, price structure etc.
It is important to define your research need in relation to your export marketing experience, for
instance, whether you already have clients in a country or whether this is your first export
business venture.
When starting to export to the EU, your research needs would probably be to familiarize
yourself with the EU market by finding out relevant information on subjects such as market
requirements, structure, developments, segments, main players etc. However, when you have
become familiar with the EU market and know which opportunities exist, the next logical step
is to go further into details and explore the possibilities to increase your sales. You will need a

very specific research about customer requirements for individual products and the strengths
and weaknesses of the main competitors.
Important issues of market research are:
A) Market development and opportunities

Market size, sales channels, major importers, agents, distributors and retailers?

What are customer preferences, what is the price level? Who will want to buy what you can
make and why?

What sorts of products are selling well (characteristics, dimensions, colours and materials)?
What colours are in fashion? What new designs are popular?

What are the prices and margins at each distribution level? What are the most important
requirements of the identified sales channels (quality, packaging, etc) and which sales
channel is most suitable for your range of products?

What are the major trade shows where your types of products are sold?

How about cultural factors in doing business in the selected markets? Professor Geert
Hofstede’s model gives you insights into other cultures so that you can be more effective
when interacting with people in other countries (www.geert-hofstede.com). Some other
interesting information on cultural factors can be found in Appendix No.10.
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Export Marketing Guidelines for Vietnamese Craft Exporters
B) Market entry requirements

What standards or requirements apply to the quality of your product and are these standards
compulsory?


What standards apply to the quality of your company’s management and production?

Are there any labels (e.g. ECO labels, etc.), which create a competitive advantage?

Are there environmental regulations or requirements on the use of dangerous substances for
your product(s)? For raw materials? For packaging waste?

What special legislation must be complied with regarding health and safety issues?

Are there any requirements on social accountability (e.g. SA 8000)?

Which import tariffs & VAT duties apply to your export products? Are there any
international trade agreements which have a positive effect on tariffs?

What weights and measures are applied in different markets? (e.g. the United States is in its
adherence to a non-metric system but Japan is metric measurement)

Some specific sources for market entry requirements are in Appendix No.11.
C) Competition

Is there much competition in these markets? Who are the main competitors?

What products compete with yours? Who are the suppliers or manufacturers of those
products? What can you make that is different and better?

Who are the main clients of your competitors?

What are the strengths and weaknesses of your main competitors?

How many competitors from your own country are active in the target market?

D) Logistics

What type of packing is appropriate for your range of products in the target markets?

What kind of shipping documentation is required? What are the packaging and labelling
requirements?

What is the average delivery time in your business line?

What type of transportation is mostly used? What are the cost components of transport from
your factory to the buyer’s warehouse?

What are the key seasonal buying and selling periods?
E) Price level
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Export Marketing Guidelines for Vietnamese Craft Exporters

What is the price range for your type of products? Can you make a profit at that price? Note
that a significant percentage needs to be deducted from the retail price, which is the price
that can most easily be researched through desk research (see section 5: Export costing,
pricing and invoicing)

What are the price developments on the market regarding your products?

How price sensitive are your clients?

What are the typical sales and payment terms?
1.2 Company Analysis (Internal Analysis)
After your export market analysis, you should assess whether your company is able to enter
your chosen markets, i.e. by doing an internal analysis. Especially if your company is new to

exporting, you should do a company audit and establish whether you can use your resources
without jeopardizing your domestic sales efforts. Elements to be assessed include: Product
standards, production capacity, flexibility, logistics, sales force, financial strengths, capabilities
etc. As a result of this internal analysis, you will be able to assess to what extent your company
is able to take advantage of the opportunities identified in the market analysis. Furthermore,
with a thorough understanding of your company's unique capabilities, you are able to invest in
opportunities that exploit your strengths.
A) Production

Do you have a factory to fully process your products or focus on treatment and finishing
stages to control the quality of your products?

Do you have some good production groups/suppliers of finished/semi-finished products so
that you can make further processing/finishing at your factory?

Are your facilities and equipment in good working condition?

Do you have sustainable treatment techniques of raw materials and finished products, e.g.
treatment for your bamboo and wood products free of mould and insect, dyeing techniques
to keep the colours durable?

Have customers ever complained about quality, for example, that your products got cracked
deformed/ mouldy at the destination?

Do you have a quality management system?

How is the present capacity being used? Will filling export orders hurt your present sales?
What minimum order quantity is required for different products?

Are you able to meet required delivery terms in time/quality?

B) Human resources
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Export Marketing Guidelines for Vietnamese Craft Exporters

Do you have skilled workers – is a sufficient number easily obtainable?

Do you have staff that are familiar with export-import techniques? Are they good at
customs declarations, shipping arrangements and international payments?

Can you speak at least one foreign language, especially English?

Who will follow up on orders after the planning is done?

Do you have people who are fully computer-literate?

Do you have your own designers and are they well aware of market trends? How many new
design collections do you have per year?

Do you have any person in your company who is familiar with supportive policies to
encourage handicraft exporters, e.g. Decision 132 on craft development, Decree 51 on
domestic investment? For a list of supporting policies, see Appendix No.12.
C) Marketing

How do you reach potential customers? What are your marketing instruments?

Do you have stable partnerships with key customers? Do you know their requirements?
First focus on existing customers before targeting new ones.

Do you have more than one customer? Do you know that you may be in a very dangerous
situation, if you reduce business with current customers and concentrate on expecting good

business with larger potential clients?

Do you have your own showroom and website? Is the website frequently updated? Do you
have impressive marketing materials (business card, catalogue...)?

Do you produce goods under a brand name? Is this brand name recognized and legally
registered?

Have you met representatives of foreign buyers and offered your services personally?

Do you have your own retail outlets?
D) Logistics

Do you have any problems with transportation of your materials/products, for example,
from your factory to the port of loading?

Do you have sufficient infrastructure to export? Internet, fax, phone, port, roads, shipping
containers?

Do you know the major freight forwarders and shipping companies in Vietnam as well as
their most competitive routes?
E) Finance

Do you know your cost structure? Do you have a budget planning for expenditures on sales,
12
Export Marketing Guidelines for Vietnamese Craft Exporters
advertising, and research and development (R&D) on a yearly basis?

Can you borrow money from commercial banks or other credit institutions, usually on
short-term basis to finance for your export orders?


Do you know export encouragement programs of the Vietnamese government, where you
can get financial support for export?

Do you have the necessary financial means for increased production?

Do you have the banking ability to get paid and to issue refunds for damaged merchandise?
1.3 SWOT Analysis
The findings of the external and internal analysis can be summarized in a so-called SWOT
analysis (SWOT stands for: strengths, weaknesses, opportunities, threats), where the most
important strong and weak points (internal factors) and the main opportunities and threats
(external factors) are ranged in order of importance.
The purpose of this analysis is to clearly show the position of the company in the market. The
essence of the SWOT analysis is to find a market segment where there is an opportunity that
matches the strengths and where the threats have a minimum impact on the vulnerable sides, the
weaknesses of the company. In fact, by matching external opportunities and internal
capabilities, the exporter should be able to identify suitable target countries, market segments
and target product(s) within these countries.
Here is an example of a SWOT analysis from a water-hyacinth handicraft company intending to
become a direct exporter to Germany.
Strengths:
•
We are able to respond very quickly as
we have a good network and well trained
staff
•
We are able to give best customer care
•
We can change direction quickly if we
find that our marketing is not working

•
We have little overhead, so can offer
good value to customers
Weaknesses:
•
Our company has no market presence or
reputation
•
We are lacking treatment and coloring
technique for our natural materials
•
We have no export experience
•
Ocean freight from Vietnam to Germany
is much higher than from China to
Germany
Opportunities:
•
Our business sector is expanding, with
many future opportunities for success,
Threats:
•
There’s a trend of using sisal material
which is produced in China
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Export Marketing Guidelines for Vietnamese Craft Exporters
especially for EU market
•
Government always encourages local
businesses with work where possible

•
Our competitors on water-hyacinth may
be slow to adopt new weaving skills.
•
The use of drying equipment that
sometimes causes water-hyacinth
material to break quickly may reduce our
range of in-house products
2 Market Entry Strategy
Gifts and decorative articles are often distributed through many different intermediaries like
agents, importers/wholesalers and retailers. The following chart outlining the distribution
channels in the EU may serve as an example of market structures in key Vietnamese export
markets. Handicraft articles are sold through widely diverging retail channels such as gift shops,
furniture outlets, garden centers, food retail stores, department stores etc.
Source: CBI, EU Market survey 2005, Gifts and Decorative articles
The most important market entry strategies for Vietnamese crafts exporters are:

To supply specialized importers, who buy a broad range of products and resell and
distribute them under their own brand names to countless small retailers. Very often, they
are specialized in different retail channels, supplying garden centers, flower stores or
exclusive interior decoration stores. Depending on the respective retail channels they
operate in, they have different needs for product groups, price levels, and design
specifications. Understanding these needs is important for exporters in order to be able to
offer them appropriate products.
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Export Marketing Guidelines for Vietnamese Craft Exporters
Importers can be very reliable partners for exporters, allowing them to enter into long-term
partnerships and to ensure stable growth, and to work with reliable trade partners and secure
repeat orders. Most of the larger importers from the EU, US or other markets visit Asian
supplier countries several times a year, with many of the larger ones having at least some

experience also in Vietnam.

Secondly, there are a number of mass retailers who source products and visit suppliers in
Asia and place orders locally. It can be a very good chance for your company to sell directly
to such mass retailers in the EU, US, Japan or other countries in the world because of the
high volumes they turn over. However, before taking up business with them you should
bear in mind that these mass retailers have all the power in the business relationship and
control the terms of sale. Lots of vendors in every country want to sell to them, so they can
buy anything from anywhere. This leads to price pressure on the suppliers, forcing everyone
from retailers and importers to suppliers to become more efficient if they want to stay in
business.

Other opportunities exist for producers in target markets to act as contract manufacturers. In
order to reduce production costs, some international manufacturers source part of their
collections from abroad and produce only some of their collections themselves.
Recently, the EU, US and Japanese markets are overrun with a surprisingly large variety of
imported household products. As such, it is necessary for you to concentrate on products that
allow both private shops and chain stores to express their individuality. Items that are new and
innovative, possess quality, and have a reasonable amount of practicality and functionality will
be viable. Also, those which are highly original are promising because they allow the store to
differentiate itself from other retailers.
In order to establish a first contact with potential buyers, your company may identify and
find customers by:

Identifying purchasing agents of large retailers that already operate in Vietnam or in the
region e.g. IKEA, Wal-Mart, Tchibo, Otto, Habitat, etc.

Attendance at national or international trade shows

Participation in trade missions abroad


Launching mailing campaigns to buyers that you may find through their websites, trade
directories, trade fair catalogues and websites etc.

Assessing websites with large databases with international coverage, including ITC Index to
Trade Information Sources (www.intracen.org), European Business Directory
15
Export Marketing Guidelines for Vietnamese Craft Exporters
(www.europages.com), World Trade Center Association (www.wtca.org)

Registering as a user of global B2B on-line trade portals such as www.ecplaza.net,
www.alibaba.com, , www.b2bexplorer.com,
www.vertic
al
zoom.com, www.go4WorldBusiness.com etc. and find buyers by searching these databases

Assessing sources from government or trade associations (VIETRADE, Vietnam
Commercial Affairs in foreign countries, Trade Centers in New York, Dubai, Japan etc.)

Identifying representatives or trade promotion organizations of foreign countries in Vietnam
like JETRO, KOTRA etc.

Your website with special key words like “Vietnam Handicrafts”, “Vietnam Home Décor”,
“Vietnam Home Furnishings”, “Vietnam Bamboo & Rattan”, “Vietnam Embroidery”,
“Vietnam Lacquer ware”, “Vietnam Ceramics” etc.
Some of the EU importers can best be met at leading trade fairs in the EU, others prefer to
source locally and look for unknown suppliers in Vietnam. The latter can best be met at
domestic trade fairs and exhibitions in Vietnam.
For the Japanese market, the use of agents/distributors is the most realistic entry strategy for a
small or medium-sized company, but this approach requires great care in the selection of the

representative. Many Japanese companies visit domestic or international trade fairs, where often
a first contact is established.
In the U.S. market, most trade fairs are dominated by U.S. importers and less suited for
exporters to exhibit. Many Vietnamese exporters failed to find buyers through trade fairs in the
United States because they competed with their buyers. If you want to enter the US market, you
may consider targeting US importers that you may meet through your attendance at local trade
fairs like the International Furniture and Handicraft Fair in Hochiminh City or other Asian or
European trade fairs.
3 Preparing a Professional Presence
In order to strengthen your corporate identity, it is essential that you build up a professional
presence, which accounts for core values, behavior, symbols and communication, and other
principles.
The “core values” are important pillars on which a corporate identity rests, and they are based
on fundamental managerial decisions, ranging from daily activities to long-term objectives.
Core values can consist of elements like company strategy, code of conduct or quality
management. Symbols include logo, letter design, brochures, business cards, the website and
16
Export Marketing Guidelines for Vietnamese Craft Exporters
other graphic presentations.
However, your company’s appearance is expressed in many more ways than through a logo on
the letterhead and your business card. Another pillar of your identity is the style and contents of
your communication with business partners. Is your communication style open, honest and
correct? Are enquiries, requests or complaints swiftly answered, and by which means of
communication? And is it possible for others to make personal contact with your staff?
3.1 Marketing Material
You need a Company Profile to give buyers an idea about your company. Bear in mind that
your company profile should reflect what a buyer likes to know about his supplier. To help
potential customers evaluate the appropriateness of your company for their needs, take care that
you refer to the following points in your profile:


Your company‘s background and history

Your company‘s corporate philosophy

How is your company organized?

Which products and services are offered?

Does your company understand the needs and requirements of its market partners?

Which are the technical and commercial skills, how are the offered products and/or services
designed, developed and implemented?
The profile should serve to convince your customer of your ability to meet his needs and to give
him the impression that your company‘s competence, skills and reliability are good enough to
be taken into consideration as a new supply partner. An example:

ABC Decor Company was founded in 1998 by Ms. A, a professional designer, who grew up
in a family with handicraft trade for generations, and Mr. A, a businessman who had
obtained an MBA degree in the United States. With its continuous efforts, so far, ABC
Decor has become one of the most famous groups of home and garden decor producers in
Vietnam, employing 120 workers in its own factory in Phu Tho province and another 200 in
its supporting groups in various craft villages nationwide.

ABC Decor is committed to providing its customers with a broad range of functional, high-
quality products for the home and garden using environmental-friendly materials for lamps,
table, chairs, decor objects.... At ABC Decor, all of us share a common mission: "To
reward our customers with long-term value and product satisfaction for every purchase".
Our passion for product is what has made us different from other producers and suppliers
17
Export Marketing Guidelines for Vietnamese Craft Exporters

in Vietnam, and it will always be what moves us forward.

Currently, we are exporting to Japan, Italy, Germany, America and South Korea with the
monthly production capacity of 5 containers. We have received best supplier awards from
XXX Company in Japan and we are also boosting our reliability to customers by adopting
ISO 9001:2000.
This information can be put together on a single page. You can include pictures of your office,
showroom and factory, if appropriate. The profile is not the right place to show pictures of your
products unless you concentrate on only one product. The profile should be easy to update and
should be in English. You should hand it out to customers you meet with and send it along with
your letters and e-mails.
You need a Business Card. This sounds simple but many companies assume they don’t need
one. Take care that it is readable:

Use block letters instead of a fancy print that is difficult to read.

Current telephone, mobile, fax, and e-mail address should be included and new cards
produced if that information changes.

Ensure that the physical address of your office/factory is included so the potential customer
can send something to you by mail or courier or he could show it to a taxi driver to find
your company.

It needs to be in English or the language of your primary customers.
The logo, letter type and colors should correspond with those of the letter paper. All vital details
should be on the front of the card. Complementary information can eventually be printed on the
reverse side. The size of card should not be larger than 9 x 5.5 cm, alternatively the same size as
a credit card, 8.5 x 5.4 cm. Be aware that cards covered with a plastic film cannot be used to
make notes on and cards which are very shiny or have a silver or gold cover result in problems
when copying or faxing them.

You need other Image Carriers, such as letterheads, envelopes, file holders etc.
Letterhead: The size of letter paper should be A4 format (210 x 297 mm). The paper quality
should be at least 80 grams, with a high degree of whiteness or, if desired, a light color. You
have to realize that letter types have an influence on the impression the letter makes on the
reader, such as friendly, businesslike, or reliable. Choose a letter design which supports the
desired image.
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Export Marketing Guidelines for Vietnamese Craft Exporters
Envelopes: Preferably use the color white for the envelope, but you could also use the same
color as the letter paper, if it is not white.
File holders: To keep your company introduction (profile, catalogue...) or a set of shipping
document or other transaction documents.
You need a Product Catalogue. Printed catalogues are produced when there is a need to
display a large range or number of products. Product descriptions are accompanied by photos or
drawings. A good catalogue is not always easy to produce. Creativity is a must for an attractive
and appealing catalogue that will impress your customers. The artwork should be a high
priority, both for the text as well as for the layout, photos/illustrations and other illustrative
elements. Its colors should be attractive and professionally matched. Key information should
cover, for instance, product code numbers, specifications and materials used.
While a printed brochure can be browsed in a few seconds to get an impression of the company
and product catalogue, a CD-Rom needs to be inserted in the CD-Rom drive of a computer. It
therefore happens often that the CD-Rom is tucked away in a quiet corner in the bottom drawer.
It can, however, be a very effective tool as a multimedia presentation at an exhibition. As an
interactive tool, where the viewer is in control of the navigation panel, it definitely has
advantages over a video presentation. You should also take note that the content and design of
the CD-Rom will give your customers a good impression about your quality management. An
appealing CD-Rom sticker and holder will make your CD-Rom stand out among others and will
encourage your customer to actually insert into his CD computer drive.
In addition, you can prepare a photo album displaying your product range. You should take a
photo of every style you make for reference, and a number of these can be put together to give

prospective customers an idea of the products you have made previously and what other
customers are purchasing from you.
You need a Website. If you have a website, ensure it is up to date. Websites serve as a
reference for your company but also need to be promoted. Many companies spend thousands of
dollars on the creation of a website and wonder why they do not have any visitors. The reason is
simple: no one knows it is there. The company profile, brochures, and catalogues can be
digitalized and put on the Web. By placing promotional materials on the Web, you will save
printing costs, while still being able to update the information any time without incurring
substantial costs. In other words, it is an economic and flexible promotional tool.
When developing and maintaining your website, you should pay heed to the following factors:
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Export Marketing Guidelines for Vietnamese Craft Exporters

Design the site in accordance with the corporate image

Build a site that looks professional, attractive, and is fast

Offer the most important information clearly and concisely

Text blocks have to be short and to the point

Offer a download option for background information, datasheets and manuals

Develop a logical and simple navigation system

Register the site with all well-known search engines

Ensure that your site is well linked to other relevant websites

Check the links regularly


Update and renew the site regularly, so as to offer up-to-date information and to encourage
repeat visits

Include a “What‘s New” page

Promote your site on all the promotional materials

Track and profile the visitors by offering an e-mail up-date service.
It is emphasized that your website cannot be used effectively as a promotional tool unless you
actively attract your target group to visit it.
You need other Promotional Material.
Product Sheets: Product sheets are usually one-page formats which provide more detailed
information on specific products. They can be distributed as loose leaflets as well as inserts in
company brochures and replaced whenever required. You can easily prepare product sheets
with the help of a computer and a color printer. This will further reduce production costs and at
the same time allow you adapt and update the sheets easily.
Hang tags: It is very important to design a nice hang tag for your product. It will list name,
style number, raw material content, colour, size of your product. Hang tags are a good tool to
advertise the maker, and to specify that the product complies with safety standards. In many
cases, hang tags are used to describe the cultural importance of your design; to explain how it is
made and its traditional uses. Make hang tags as beautiful as your products.
Insert cards: An insert card should be used professionally, especially for high-end products.
This is a removable card or label that “romances” the product, tells its story and/or the artisan’s
story to help increase the likelihood someone will buy it.
Care labels: A care label giving caring and cleaning instructions is permanently or semi-
permanently attached to a product. It is often applied to lacquer ware and textile articles, of
which imported textiles have specific care-label requirements.
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Export Marketing Guidelines for Vietnamese Craft Exporters

3.2 Professionalize your Staff and Communication
You will impress a potential buyer if not only you yourself as the general manager act
professionally but if your staff does as well. A good method of accomplishing this is to train the
key members of your staff (manufacturing, customer service, and engineering) to be able to
make a quick and accurate presentation of their job and to explain in which way they are
responsible for the production or shipping of the client’s order. This should be done in advance
of the customer’s visits, and the presentation should be reviewed to see that it is accurate but no
confidential information is provided. The goal is for the customer to know that his order is
being attended to professionally from the time it is received until it is shipped. It is therefore
important that the company’s personnel should be given clear instructions as far as external
communication is concerned.
Although it is not likely, it is possible that a customer will buy from you but will never visit
your office. It is likely that a customer or potential customer will communicate with you for
some time before visiting your office. A mistake many companies make is that they fail to
professionalize their office communication.
You should insure that if you have e-mail, you have a policy that it is checked and responded to
promptly. Even if the response is “we have received your query and will answer tomorrow.”
Fax machines often run out of paper and continue to ring or customer faxes are collected but not
acknowledged. Company telephones are answered by people who speak only the native
language and hang up if there is a foreign language on the other end.
The way your company communicates reveals a great deal of information about your
professional conduct to a potential customer. Professionalizing your office communication is
very inexpensive yet pays off substantially over time.
Writing effective e-mail messages:

E-commerce is ever more popular in business transactions nowadays. However, many
companies often disregard the importance of writing an e-mail message effectively and if
you do so, this may influence your image to some extent.

It is crucial that your message catches the readers’ eye. Begin with a greeting, or a word of

thanks. Thereafter, write your main message in one or two short sentences, and end by
stating what you expect from the reader. In the following paragraphs, you give additional
information or arguments and describe the advantages to the reader. The last paragraph
should once more contain the core of your message, after which you sign off with a
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Export Marketing Guidelines for Vietnamese Craft Exporters
greeting. Just as in a letterhead and the signing of an ordinary letter, it must be absolutely
clear who is writing the e-mail. Therefore, under the text you should place your own name,
company name, address, telephone and fax numbers.

When you answer an e-mail message, let the subject line remain unaltered. It is then easier
for the receiver of your reply to know instantly what the message is about. You write your
answer above the text which you received. It is not advisable to deal with different subjects
in one and the same e-mail. Instead, send separate e-mails, so that the receiver can open
and/or file them separately.

Make sure that there is a policy that all e-mails are checked and responded to promptly –
even if the response is “we have received your query and will answer tomorrow.”
Writing effective business letters:

A formal business letter is constituted by the following elements: Letterhead, name and
address, date, salutation, reference, body of the letter, complimentary close, signature and
enclosures.

The salutation: The type of salutation depends on your relationship with the recipient.
Always try to personalize the letter by addressing the recipient with his/her name rather than
with dear sir/madam.

A reference line is optional, but its inclusion can help the recipient deal successfully with
the subject of your letter. Normally the reference line is preceded with the word Re:. It

should be placed one line below the greeting.

The main body of your letter contains a number of paragraphs, each paragraph dealing with
one point and one point only. Start your letter with the main message. Do not waste too
much time with introductions. Give the reasoning or the background of your message. Tell
the reader why you are approaching him or her. Elaborate on the message: Provide details,
precise information, arguments, and, if applicable, the actions you intend to take. Finish
with a closing statement. Do not leave anything open by saying for instance “We look
forward to your response” but close with “We will phone you next Friday (May 22) to
discuss your feedback on the proposal”.

The signature should be clear and legible, showing you are interested in the letter and
consequently in the recipient’s aim. Your signature should also be followed underneath by a
typed version of your name and your job title.

If you include other material in the letter, put 'Enclosure', 'Enc', or ' Encs ', as appropriate,
two lines below the last line.

Once the final version of the letter is ready, polish it with a final spelling and punctuation
check. A letter should make an impeccable impression, neat, without typing errors. Try to
pack the whole message onto one A4 size page. Use good quality and clear-white paper.
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Export Marketing Guidelines for Vietnamese Craft Exporters
Telephone etiquette:

Knowing how to answer the telephone is an essential business skill. The person who
answers the phone gives the caller a first impression of your company. He or she must be
friendly and courteous and know good telephone etiquette. When answering the phone, you
should always start with a greeting e.g. Good Morning (Afternoon, Evening). This is ABC
Decor, How may I help you? or Hello, ABC Decor, How may I help you?.


If the caller asks for a certain person, a proper response would be "One moment please, I
will transfer you to that extension" or "Mr. A/Ms. B is out of the office at the moment, is
there something I can help you with?"

If the caller asks a question and you don't know the answer, a proper response would be
"I'm sorry I can't answer that, let me transfer you to someone who can help you" or " Can
you hold please? I will see if I can get you the answer in a moment."

If you put someone on hold, do not make him or her wait too long. Be prepared before you
answer the telephone. Have a pencil or pen along with a pad of paper near your telephone so
you can write down important information such as their name. When speaking to them, use
their name during the conversation but don't overdo it.

When initiating the telephone call, you should organize your thoughts before you place your
call. Make a short list of important items you want to discuss.

If the person you are trying to contact actually answers the telephone, after shortly
introducing who you are, begin by asking them, "Is this a good time to talk?" You may have
called while they were busy. In that case, ask them when would be the best time to call them
again. Make sure you remember and call them again at the correct time.

Do not speak too fast and slow down when you are leaving a message, or saying your
telephone number. Pronounce your name clearly and spell it if necessary.

For both answering and initiating a phone call, please remember that people do judge you
by the tone of your voice and what you say - always sound professional!
3.3 Professionalize your Company Operations
In many cases, especially when working with large corporate clients, a company’s operations
need to be well organized to meet the auditing requirements of their buyers. As a matter of fact,

these requirements also always tend to support the effective operation of the companies in term
of productivity, environmental protection etc. and therefore, in any case, the exporters should
consider applying these standards.
Following is an example of auditing requirements from a larger retailer to its suppliers.
1 Employee record. Availability: Yes No
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Export Marketing Guidelines for Vietnamese Craft Exporters
2 Past 12 months’ time card/attendance record Availability: Yes No
3 Past 12 months’ pay record. Availability: Yes No
4 Factory regulations. Availability: Yes No
5 Insurance certificate. Availability: Yes No
6 Environment Approval Certificate. Availability: Yes No
7 Fire drill record. Availability: Yes No
8 Production machinery list. Availability: Yes No
9 Organization chart with number of workers in each
division / section.
Availability: Yes No
11 Business Registration. Availability: Yes No
12 Factory owner’s/major share holder’s name
Other information also needs to be provided for the buyers’ quick reference:
a. Factory Area – Production: Office: Dormitory:
b. Number of employee:
c. Monthly production capacity:
d. Your major customers:
e. Normal working hours: hours/week
f. Average overtime hours: hours/week
g. Do you have enhanced overtime payment as required by Labour Law: Yes No
h. Do you have maternity leave policy: Yes No
i. Do your employees have pay during the statutory holidays: Yes No
j. Do you discipline the employees by salary deduction: Yes No

k. Youngest employee: years old
l. Local legal minimum wages: /month Average wages: /month
m. Lowest wages: /month
n. Do your factory building(s) each has TWO fire exits: Yes No
o. Do your dormitory building(s) each has TWO fire exits: Yes No N/A
p. Do you have first aid supplies in each production floor / dormitory: Yes No
q. Number of person per toilet: Men Women
r. Number of person per dormitory room Average area / person:
You can study and apply some useful management solutions to improve the effectiveness of
your company’s operations e.g. ISO, TQM (Total Quality Management), Kaizen & 5S, SA8000
or 6Sigma. Of course, it is time-consuming and costly to have the above standards certified, but
following and learning from their procedures will surely professionalize your company’s
operations.
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Export Marketing Guidelines for Vietnamese Craft Exporters
If your customers are from Japan, you may have an advantage if you apply the Japanese 5S
philosophy (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke). It focuses on effective work place
organization and standardized work procedures. 5S simplifies your work environment, reduces
waste and non-value activity while improving quality efficiency and safety:

Seiri (Sort): focuses on eliminating unnecessary items from the workplace

Seiton (Set in Order): focuses on efficient and effective storage methods

Seiso (Shine): focuses on cleaning the work area. Daily follow-up cleaning is necessary in
order to sustain this improvement

Seiketsu (Standardize): focuses on standardizing best practice in your work area

Shitsuke (Sustain): focuses on defining a new status quo and standard of work place

organization.
Your Showroom is the most effective marketing tool to convince the customers that visit you
on your premises. If you cannot afford to participate in expensive international trade fairs, start
with an impressive showroom first.
How things are displayed also affect how valuable they appear. Present your products as nicely
as you can, arranging them by topic/collection with specific color and shape. Your product
samples need to be creatively arranged in a crisp, clean, architecturally appealing setting so that
your customers can visualize how they function and how they can be used. Furthermore, it may
be a good idea if you decorate your showroom with a set of green trees to give the room a
natural appearance.
You may not have the skills required for decorating. In that case, you can ask for the support of
the designers at the Art Colleges or the designers who come from your target markets and work
in Vietnam through many co-operation programs.
3.4 Understanding Market Requirements to Improve your Presentation
Vietnamese companies have a particular style when it comes to presenting products in
marketing documents, like catalogues, brochures, and websites. Most documents refer to either
the name of the product or the materials used to make the product. For example, handicraft
companies often divide their product range into the categories of bamboo, rattan, ceramic,
embroidery and lace and others, then further split the products into sub-categories such as
baskets, trays, handbags etc.
When dealing with US clients, you should be aware that this classification system seems
strange to US customers, because they often categorize products by function, e.g. furniture,
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