Over the past three decades, Vietnam has transformed from a closed economy to a vibrant and vibrant market economy, a transformation that can be described as an economic miracle. In 2020, even under the impact of the global epidemic, Vietnam still achieved a GDP growth of 2.91%, making it one of the very few economies to maintain positive growth. By 2025, Vietnam is expected to become the world’s 20th largest economy. This sustained growth is not only reflected in macroeconomic data, but also in its continuously improving infrastructure, the growing consumption power of the middle class, and the government’s positive attitude towards foreign investment.

The importance of the Vietnamese market lies not only in the huge consumption potential brought by its population of 970,000, but also in its strategic faults and continuously optimized business environment. In recent years, Vietnam has actively participated in free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), further strengthening its position as a global supplier for companies seeking to expand their markets. Vietnam is undoubtedly an attractive choice for companies looking to reduce production costs.

However, entering a new market is always challenging. Obstacles, cultural differences, the complexity of laws and regulations, and the establishment of local business networks may all become stumbling blocks for companies in their overseas expansion. This is the key reason why industry associations play a role in the process of companies going overseas. As a bridge connecting the government, enterprises and the market, industry associations can provide enterprises with valuable support and resources. They are not only an important source of industry information and market dynamics, but also provide enterprises with training, consulting, and business. By joining relevant industry associations, enterprises can quickly understand market rules, establish local business networks, and even influence the formulation of industry policies.

Especially for companies entering the Vietnamese market for the first time, industry associations can become their “local delicacy”. Associations usually have rich local resources and extensive personal networks, which can help companies complete market access and product certification more smoothly. In addition, by participating in various activities organized by the association, companies can also exchange experiences with peers and learn about the latest industry trends. Trends and best practices to better develop localization strategies.

The purpose of this guide is to provide a comprehensive and practical industry association resource map for companies entering the Vietnamese market. We will introduce in detail the basic information, core functions and service contents of Vietnam’s major industry associations to help companies understand how to effectively use these content resources to support their market expansion plans. With this guide, businesses can quickly identify the connections most relevant to their business, learn how to become a member, and how to maximize the benefits of membership.

Overview of Vietnam Industry Associations

Industry associations play a very unique and distinct role in Vietnam’s business ecosystem. These associations not only serve as spokespersons for companies in the industry, but also serve as an important bridge between the government and the commodity sector. Since Vietnam implemented the “Doi Moi” policy in 1986, the number and influence of industry associations have continued to grow. By 2023, Vietnam will have more than 500 national industry associations and thousands of local associations, covering various economic fields from agriculture to high-end agricultural products.

The position of industry associations in Vietnam’s business ecosystem can be understood on multiple levels. First, at the policy level, they are important consulting objects for the government when formulating relevant regulations and policies. For example, during the revision process of the Labor Law in 2019. Secondly, at the market level, the association promoted intra-industry and cross-industry activities by organizing trade shows, commercial fashion and other activities. The Vietnam Electronics Show held annually by the Vietnam Electronics Industry Association (VEIA) is A typical example, the exhibition has become an important electronics industry exchange platform in Southeast Asia.

In addition, at the international level, these associations also shoulder the important task of representing Vietnam’s relevant industries in international dialogue. For example, the Vietnam Coffee Association (VICOFA) actively participates in the activities of international coffee organizations and contributes to the positioning and promotion of Vietnamese coffee in the global market. It is worth noting that in recent years, as Vietnam actively integrates into the global economic system, these associations It plays an increasingly prominent role in helping local companies cope with international trade rules and improve product quality standards.

Joining an industry association has obvious benefits for enterprises, especially foreign enterprises. The first is information advantage. Association members can usually obtain key information such as industry policy changes and market trends as soon as possible. For example, the Vietnam Information Technology Outsourcing Association (VNITO) regularly provides members with the latest developments in the global IT outsourcing market, which is crucial for formulating business strategies. Followed by network resources. By participating in association activities, companies can quickly establish local business networks and find potential partners and suppliers. The Vietnam Tourism Association (VITA) often organizes member companies to participate in international tourism exhibitions and build a platform to expand overseas markets.

Furthermore, the association also provides members with various training and consulting services to help companies improve their management level and technical capabilities. The Vietnam Association of Small and Medium Enterprises (VINASME) has proposed a series of training programs for financial SMEs, ranging from management to digital transformation. For foreign enterprises, these services can help them better understand local market characteristics and operating practices. In addition, being an association member can also enhance a company’s credibility and brand image to a certain extent, which is crucial in a relationship-oriented business environment like Vietnam.

However, how to choose a suitable industry association is an issue that requires careful consideration. First, companies should clarify their needs and goals. Do you want policy support? Or expand your business network? Or looking for opportunities to upgrade technology? Different goals may point to different associations. Second, assess the association’s influence and resources. It can reflect factors such as the association’s establishment time, membership size, relationship with departments, frequency and scale of events held. For example, the Vietnam Chamber of Commerce and Industry (VCCI), founded in 1963, is a comprehensive business association with a long history and great influence.

In addition, the degree of internationalization of the association must also be considered. If the business’s goal is to expand into international markets, an association with extensive international connections may be more valuable. The Vietnam Software and Information Technology Services Association (VINASA) maintains close cooperation with a number of international IT companies, which will provide certain help to Vietnamese IT companies that want to enter the global market. Also pay attention to the association’s dues structure and membership obligations to ensure these match the business’s budget and capabilities.

It is worth mentioning that some industry enterprises in Vietnam have joined multiple relevant associations at the same time. For example, a textile company may be a member of both the Vietnam Textile and Apparel Association (VITAS) and the Vietnam Cotton and Textile Association (VCOSA). This approach allows companies to obtain resources and support from different angles, but it also requires a balance between investment and return.

Finally, it is recommended that before formally joining, enterprises can participate in some of the association’s open activities as members or communicate with existing members to gain a deeper understanding of the association’s operations and actual value. Many associations, such as the Vietnam Food Association (VFA) , want members to participate in their public seminars or exhibitions, which provides companies with the opportunity to “test the waters”.

Introduction to major industry associations

Vietnam Chamber of Commerce and Industry (Vietnam Chamber of Commerce and Industry – VCCI)

The Vietnam Chamber of Commerce and Industry was established in 1963 and is one of the most influential business organizations in Vietnam. VCCI is a national organization representing the interests of Vietnamese business and industry. As an independent non-governmental organization, VCCI plays a key role in promoting Vietnam’s economic development and international economic cooperation.

The main responsibilities of VCCI include:

Policy proposal: As a bridge between enterprises and the government, VCCI actively participates in the policy formulation process, reflects the demands of enterprises, and promotes the optimization of the business environment. For example, VCCI played an important role in the 2019 revision of the Labor Law, ensuring the full expression of corporate interests.

Business promotion: Organize three trade exhibitions and business layout activities to help member companies expand their markets. The Vietnam International Trade Expo (Vietnam Expo) held every year by VCCI is an important trade platform in Southeast Asia.

Training and consulting: Provide a wide range of training courses and consulting services, covering many aspects such as business management, international trade, laws and regulations. Among them, VCCI’s corporate social responsibility (CSR) training program has been widely condemned in Vietnam’s business community.

International cooperation: Representing the Vietnamese business community in exchanges and cooperation with international organizations and foreign chambers of commerce. VCCI is a member of the International Chamber of Commerce (ICC) and actively participates in discussions on international economic and trade rules.

Commercial certification: As an agency authorized by the Vietnamese government, VCCI is responsible for issuing certificates of origin (C/O) and handling ATA carnets to facilitate international trade for enterprises.

Vietnam Textile and Apparel Association (VITAS)

The Vietnam Textile and Apparel Association was established in 1999 and is an authoritative organization representing the Vietnamese textile and apparel industry. VITAS plays an important role in promoting industry development and enhancing international competitiveness, especially in the process of Vietnam’s textile and garment industry becoming the world’s third largest exporter.

The main responsibilities of VITAS include:

Industry representatives: Represented the Vietnamese textile and apparel industry on various occasions in the first session, communicated industry demands with government departments, and participated in the formulation of relevant policies. For example, in the US-Vietnam trade negotiations, VITAS actively strived for favorable conditions for the industry.

Market information: Provide members with the latest market trends, technological developments, policy changes and other information. The “Vietnam Textile and Garment Industry Report” published regularly by VITAS is an important reference.

Technological innovation: Promote technological upgrading and sustainable development of the industry. VITAS cooperates with multiple international organizations to promote the application of cleaner production and circular economy in the textile and apparel industry.

Talent training: organize various training projects to improve the skill level of industry practitioners. VITAS’s fashion designer training program cultivates a large number of talents for Vietnam’s fashion industry.

International cooperation: Promote cooperation with international buyers and brands, and help Vietnamese companies integrate into the global supply chain. VITAS organizes members to participate in multiple international textile and clothing exhibitions every year, such as the Paris International Fashion Show (Who’s Next).

Vietnam Electronic Industries Association (VEIA)

The Vietnam Electronics Industry Association was established in 2000 and is the main industry organization of Vietnam’s electronics industry. As Vietnam gradually becomes a global electronics manufacturing center, VEIA plays an increasingly important role in promoting industry development and technological innovation.

VEIA’s main responsibilities include:

Policy suggestions: Provide industry development suggestions to the government and participate in the formulation of policies related to the electronics industry. VEIA has made important contributions in promoting the localization rate of Vietnam’s electronics industry.

Technical standards: Participate in the formulation of industry technical standards and promote industry quality improvement. VEIA actively participates in the work of the International Electrotechnical Commission (IEC) to promote the integration of Vietnamese standards with international standards.

Exhibition organization: The Vietnam International Electronics Exhibition (Vietnam ETE) has become an important electronics industry exchange platform in Southeast Asia.

Talent training: Cooperate with universities to carry out talent training projects to solve the problem of talent in the industry. VEIA’s industry-university-research cooperation projects have been widely recognized by the industry.

International cooperation: Promote cooperation with the international electronics industry and promote the global value chain of Vietnamese enterprises. VEIA has established close cooperative relationships with electronics industry associations in South Korea, Japan and other countries.

Vietnam Software and Information Technology Services Association (Vietnam Software and IT Services Association – VINASA)

The Vietnam Software and Information Technology Services Association was established in 2002 and is the leading organization in Vietnam’s IT industry. VINASA plays an important role in promoting the development of Vietnam’s digital economy and cultivating local IT companies.

VINASA’s main responsibilities include:

Industry Promotion: Promote the image of Vietnam as a global software outsourcing destination. The “Top 50 Excellent Outsourcing Enterprises in Vietnam” report released by VINASA every year has great influence internationally.

Innovation incubation: Support IT entrepreneurship and innovation. The Vietnam Silicon Valley project (Vietnam Silicon Valley) operated by VINASA has incubated a number of successful technology startups.

Talent development: organize extensive IT skills training and certification. VINASA’s AI engineer training program plays an important role in addressing the AI ​​talent gap in Vietnam.

International cooperation: Promote cooperation between Vietnamese IT companies and international partners. VINASA is an active member of the Asia and Oceania Computer Industry Organization (ASOCIO).

Policy advice: Provide suggestions for the government’s IT industry policy. VINASA provided valuable industry opinions in promoting the formulation of the Cybersecurity Law.

Vietnam Food Association (VFA)

The Vietnam Food Association was established in 1989 and is the main representative organization of the Vietnamese food industry. VFA plays an important role in ensuring food safety and promoting the export of agricultural products, especially in the field of rice export.

The main responsibilities of the VFA include:

Export Coordination: Coordinate the export activities of member companies, especially rice exports. VFA plays an important role in global rice trade, and its rice export price guidelines have a significant impact on the international market.

Quality control: Promote the implementation and improvement of food safety standards. VFA actively promotes Global Good Agricultural Practice (Global GAP) certification to improve the international competitiveness of Vietnamese agricultural products.

Market information: Provide members with the first round of market information and trading opportunities. VFA’s market analysis reports are respected in factories.

Technical support: Provide member companies with guidance on food processing technology and equipment updates. VFA cooperates with multiple international organizations to introduce advanced food processing technology.

International cooperation: Participate in international exchanges and cooperation on behalf of the Vietnamese food industry. VFA is an important member of the Vietnam Food and Beverage Alliance (AFBA) and actively participates in the formulation of regional food standards.

These industry associations play a vital role in Vietnam’s economic development. They are not only spokespersons for enterprises in the industry, but also an important force in promoting industry progress and promoting international cooperation. For companies developing in the Vietnamese market, understanding and making good use of the resources of these associations will provide strong support for business development in Vietnam.

Industry association service analysis

Vietnam’s industry associations guide members to provide a range of comprehensive and professional services that not only help companies cope with daily business challenges, but also provide strategic support for long-term development. Through an in-depth analysis of these services, we can better understand the core value of industry associations in Vietnam’s business ecosystem.

Information and advisory services

Information and consulting services are the basic functions of Vietnamese industry associations. In a market environment where information is not expensive, the value of this service is extremely prominent. Take the Vietnam Chamber of Commerce and Industry (VCCI) as an example. Its monthly “Business Forum” magazine covers the latest economic policy interpretations, industry dynamics and market trend analysis, and has become an important reference for many companies’ decision-making. VCCI also operates a real-time updated online database that provides market reports and research results for various industries.

The Vietnam Textile and Apparel Association (VITAS) focuses on providing in-depth market insights for the textile and apparel industry. Its quarterly “Vietnam Textile and Apparel Market Outlook” report not only contains detailed industry data, but also combines global fashion trends to provide strategic guidance for companies to formulate production and marketing. VITAS has also set up a special consultation hotline, where industry experts will answer specific questions about production technology, quality standards, export regulations, etc. for member companies.

It is worth noting that these information and consulting services are often customized based on client needs. For example, the Vietnam Food Association (VFA) provides different levels of services from basic market information to complex strategic consulting based on the needs of enterprises of different sizes. This flexibility allows small and medium-sized enterprises and multinational companies to expand their interests.

Training and Capacity Building

Training and capacity building services are key measures taken by Vietnam industry associations to promote enterprises to improve their competitiveness. These services not only cover technical training, but also include management capability improvement, compliance training and other aspects.

The Vietnam Software and Information Technology Services Association (VINASA) has performed extremely well in this regard. VINASA cooperates with internationally renowned IT companies such as Microsoft and Google to regularly hold technical seminars and hackathons. Its “Digital Transformation Cultivation Leaders Program” has cultivated hundreds of business leaders with digital thinking and effectively promoted the digitalization process of Vietnamese enterprises.

The Vietnam Electronics Industry Association (VEIA) focuses on improving the industry’s technological innovation capabilities. VEIA cooperates with the Ministry of Science and Technology of Vietnam to hold the “Electronic Product Innovation Design Competition” every year and provides commercialization support for the winning projects. In addition, VEIA also cooperates with many universities to offer practical courses in electronic engineering to help solve the talent problem in the industry.

It’s worth mentioning that these training and capacity-building programs are often custom-designed, allowing companies to choose what to participate in based on their needs. For example, the “Emerging Market Expansion” training program of the Vietnam Chamber of Commerce and Industry (VCCI) is divided into modules such as market research, risk management, and cross-cultural communication. Companies can participate in turns according to their own circumstances.

Network and Business Tracking

In the relationship-oriented Vietnamese business environment, the importance of network and business cluster services is self-evident. Vietnam’s industry associations organize various activities to build communication platforms for member companies and promote cooperation.

The “Vietnam Entrepreneurs Forum” held annually by the Vietnam Chamber of Commerce and Industry (VCCI) is one of the largest business exchange events in the country, bringing together entrepreneurs, investors and government officials from all walks of life. The “one-on-one” business stage during the forum created opportunities for many small and medium-sized enterprises to cooperate with large enterprises.

The Vietnam Textile and Apparel Association (VITAS) helps downstream clothing manufacturers establish connections with upstream fabric and accessories suppliers through its “supply chain docking platform”. The online platform not only provides supply and demand information, but also includes suppliers’ credit ratings, significantly reducing the cost and risk for companies to find the right partner.

In addition, many associations also use digital technology to improve the efficiency of online services. For example, the Vietnam Food Association (VFA) has developed a mobile application through which members can view the business information of other members in real time, initiate cooperation requests, and even conduct preliminary business negotiations.

policy

Policy proposals are one of the core functions of industry associations, and in a rapidly changing economy like Vietnam, the importance of this service is even more prominent. Industry associations collect member opinions through various channels, integrate industry demands, and represent the industry in the policy formulation process.

The Vietnam Chamber of Commerce and Industry (VCCI) has played a leading role in this regard. VCCI regularly organizes “Business and Policy Dialogue” activities, inviting officials and business representatives to conduct stock exchanges. In this way, VCCI has successfully promoted the government’s policy landscape that is conducive to improving the business environment, such as simplifying business registration procedures and optimizing tax policies.

Some professional associations exert influence in specific fields. For example, the Vietnam Software and Information Technology Services Association (VINASA) provided a large amount of professional advice during the formulation process of the “Important Network Security Law” to ensure that national laws protect security while not excessively restricting the innovation of the IT industry.

The implication is that these policy activities are not one-way. The association not only conveys corporate demands to the government, but also helps companies understand and adapt to the new policy environment. For example, when the Vietnamese member government introduced new environmental protection regulations, the Vietnam Textile and Apparel Association (VITAS) quickly organized a series of seminars to help member companies understand the new regulations and formulate corresponding compliance strategies.

International cooperation and exchange

In the context of Vietnam’s active integration into the world, industry associations are playing an increasingly important role in promoting international cooperation and exchanges. These services not only help Vietnam’s corporate economy go global, but also attract international resources to enter the Vietnamese market.

As the most internationally influential business organization in Vietnam, the Vietnam Chamber of Commerce and Industry (VCCI) organizes multiple visiting delegations every year to help Vietnamese companies explore overseas markets. VCCI has also signed cooperation agreements with chambers of commerce in multiple countries to provide members with cross-border business consulting and problem-solving services.

For example, the Vietnam Software and Information Technology Services Association (VINASA) is an active member of the Asia and Oceania Computer Industry Organization (ASOCIO). Through this platform, VINASA not only secures multiple international cooperation projects for members, but also promotes Vietnam’s IT industry standards and international cooperation. Connect.

The Vietnam Textile and Apparel Association (VITAS) focuses on helping members connect with international buyers. VITAS not only regularly organizes members to participate in international exhibitions, but also has established direct connections with many international fashion brands to help Vietnamese companies enter the global supply chain. VITAS also cooperates with the International Factory Organization (ILO) to promote Vietnam’s textile and garment industry to meet international standards in terms of factory rights and environmental protection, and enhance the global competitiveness of the industry.

In addition, these associations are also actively introducing international resources to Vietnam. For example, the Vietnam Food Association cooperates with Wageningen University in the Netherlands to introduce advanced agricultural technologies and food processing methods to promote the modernization of Vietnam’s food industry.

How to effectively utilize industry association resources

Effective use of industry association resources requires companies to take a proactive, systematic and strategic approach. By actively participating in association activities, leveraging association platforms to expand business, building local networks, and gaining industry insights, companies can increase their association membership. This will not only help companies meet current challenges, but also lay a solid foundation for long-term development. In the rapidly changing Vietnamese market, this deep engagement and resource utilization can become a key factor in a company’s competitive advantage . Here are a few key aspects.

Actively participate in association activities

Active participation in association activities is the basis for utilizing industry association resources. It’s not just about simply showing up at a meeting or event, it’s about being deeply involved, contributing your own insights, and extracting value.

First, companies should develop an annual association event participation plan. The plan should identify which activities are required and which are optional based on the company’s strategic goals. For example, if a company’s goal is to expand into the international market, then international trade exhibitions organized by the Vietnam Chamber of Commerce and Industry (VCCI) should be a priority event to participate in.

Secondly, companies should appropriately arrange personnel to participate in different types of activities. Senior managers are suitable for participating in strategic forums and policy discussions, while technical staff are more suitable for participating in professional training and technical seminars. For example, the artificial intelligence seminar of the Vietnam Software and Information Technology Services Association (VINASA) is more suitable for technical teams to participate.

In addition, companies should take the initiative and seek a more active role in association activities. This may include delivering a keynote address at a seminar, taking on a leadership role in a working group, or contributing articles to the association’s books. For example, a textile company with excellent practices in sustainable development can share its experience at the environmental protection forum of the Vietnam Textile and Apparel Association (VITAS). This not only enhances the company’s industry influence, but also deepens connections with other members.

Businesses can set up an internal organization to aggregate and share information and opinions gained from association activities. This could be regular internal mechanism briefings, or an online knowledge sharing platform. This ensures that the entire organization has access to information and input from association resources. The beneficiaries, not just the individuals participating in the activity.

Use the association platform to expand business

Industry associations provide unique platforms that companies can use to expand their business and explore new market opportunities.

First, enterprises should make full use of the association’s commercial production services. Many associations, such as the Vietnam Chamber of Commerce and Industry (VCCI), offer customized commercial production services. Enterprises should prepare detailed demand descriptions or cooperation proposals in advance so that the association can coordinate more accurately. At the same time, it is necessary to conduct preliminary research on potential partners and conduct more material exchanges at equipment meetings.

Secondly, companies can provide products and services through the association’s exhibition platform. For example, the Vietnam International Electronics Show held annually by the Vietnam Electronics Industry Association (VEIA) is a good opportunity. For example, in the past, companies should propose designing exhibition stands, prepare professional display and promotional materials, and train exhibition personnel to ensure that the exhibition effect can be improved.

In addition, companies can also use the association’s international network to explore overseas markets. For example, the Vietnam Food Association (VFA) has cooperative relationships with a number of international food associations. Companies can understand overseas market demand and find potential international buyers through these channels. When participating in international events, companies should prepare English versions of their company introductions and product catalogs, and consider cultural differences to better communicate with international partners.

Businesses can also enhance their brand by sponsoring association events. This not only increases exposure but also showcases the company’s industry contributions. For example, an IT company can sponsor the annual technology conference of the Vietnam Software and Information Technology Services Association (VINASA), which will not only gain access to a large number of potential customers, but also gain access to the company’s technical strength.

Build local networks through associations

In the relationship-oriented Vietnamese business environment, building a strong local network is crucial. Industry associations therefore provide an ideal platform.

First, enterprises should develop a systematic network construction plan. This plan should include a list of targeted contacts, who may be key decision-makers, potential customers, or suppliers within the industry. These targets are then identified through the association’s membership directory or event attendee lists and connected with them at association events.

Second, companies should actively participate in the association’s group activities or committee work. For example, the Vietnam Textile and Apparel Association (VITAS) usually establishes multiple thematic working groups, such as sustainable development group, technological innovation group, etc. Participating in these groups not only provides insight into a specific field, but also allows you to build closer relationships with like-minded peers.

In addition, companies can also use the association’s online platform to expand their networks. Many associations have members-only online forums or social media groups. Businesses should designate someone to regularly participate in these online discussions, share valuable information, and answer other members’ information questions to build a professional image and trusting relationships.

Companies can also consider developing in-depth cooperation with other member companies. This may include joint research and development projects, joint market development, etc. For example, through the Vietnam Electronics Industry Association (VEIA) platform, a chip design company may establish a strategic partnership with an electronic product manufacturing company partner. This in-depth cooperation can not only bring direct business benefits, but also establish faster network relationships within the industry.

Get industry insights and market trends

Industry associations are a valuable resource for gaining industry insights and market trends, and companies should establish a systematic approach to leveraging this information.

First, enterprises must comprehensively sort out the various information resources provided by the association, including regular reports, research papers, policy briefs, etc. Then, establish an internal information distribution mechanism to ensure that relevant information can be delivered to the appropriate departments and personnel in a timely manner. The Vietnam Chamber of Commerce and Industry (VCCI)’s monthly economic report may need to be distributed to the company’s strategic planning team, finance team, and marketing team.

Secondly, enterprises should actively participate in the association’s market research activities. Many associations, such as the Vietnam Food Association (VFA), frequently conduct industry-wide surveys. Companies should not only actively respond to these surveys, but also propose research topics that interest them. By participating in these studies, companies not only gain access to comprehensive industry data, but also gain insights into what their peers are thinking and doing.

In addition, enterprises should also make full use of expert seminars and industry forums organized by the association. These events often feature industry leaders and experts sharing their opinions. Companies should assign appropriate personnel to participate and encourage them to ask questions at the event to obtain more in-depth information. They should also establish an internal event mechanism to collect and share the opinions gained from these events.

Businesses can also access global industry trends through the association’s international network. For example, the Vietnam Software and Information Technology Services Association (VINASA) has cooperative relationships with a number of international IT organizations, and companies can learn about global IT development trends through these channels. When participating in international exchange events, companies should be prepared with specific questions and concerns so that they can obtain the most relevant information.

Case study

TH True Milk: Upgrading the physical industry through Vietnam Dairy Association

TH True Milk is one of the largest dairy companies in Vietnam and its success is due to its close cooperation with the Vietnam Dairy Association.

In 2010, when TH True Milk decided to expand production on a large scale, it faced challenges with technology and quality standards. Through the Dairy Association, the company receives key support from:

For technology introduction , the association helped TH True Milk establish contact with Israel’s advanced dairy farming technology suppliers and introduce a high-tech dairy farm management system.

In the formulation of standards , the company actively participates in the formulation process of national dairy quality standards led by the association to ensure that new standards are both in line with international standards and take into account actual local conditions.

When the policy was proposed , the association represented dairy companies, including TH True Milk, who made suggestions to the government and successfully promoted preferential tax policies for dairy farming.

International exchanges , through pilot activities organized by the association, the TH True Milk management team visited advanced dairy companies in New Zealand and Europe to learn from international best practices.

As a result, by 2015, TH True Milk has become Vietnam’s largest raw milk supplier, with a market contribution of more than 30%, and product quality reaching international standards. Ms. Thai Huong, the company’s chairman, was elected as the vice president of the Dairy Association, further enhancing her influence in the industry.

FPT Software: Going global with the help of Vietnam Software and Information Technology Services Association

FPT Software is the largest software outsourcing company in Vietnam. The successful implementation of its international strategy largely benefits from the support of the Vietnam Software and Information Technology Services Association (VINASA).

International Certification : In 2008, under the guidance of VINASA, FPT Software successfully obtained CMMI Level 5 certification, which is the highest international standard in the field of software development and has greatly enhanced the company’s credibility in the international market.

Market development , through the cooperation between VINASA and the Japan Information Technology Services Industry Association (JISA), FPT Software successfully entered the Japanese market and has now become its largest overseas market.

In terms of talent training , the company participates in VINASA’s “Vietnam High-Quality IT Talent Training Program”, which not only actively reserves talents for itself, but also improves the talent level of the entire industry.

For brand promotion , FPT Software has been awarded the “Vietnam Outstanding Outsourcing Enterprise” badge by VINASA many times. These awards play an important endorsement role in international bidding.

As a result , as of 2022, FPT Software has established branches in 28 countries with more than 22,000 employees worldwide, becoming one of Asia’s leading technology and IT services giants.

Vinatex: Addressing international trade challenges with the Vietnam Textile and Apparel Association

Vietnam National Textile and Apparel Group (Vinatex), the largest textile and apparel enterprise in Vietnam, has made full use of the resources of the Vietnam Textile and Apparel Association (VITAS) when dealing with international trade challenges.

Trade negotiations : In 2018, when the United States was considering imposing additional tariffs on Vietnamese textiles, VITAS represented industry companies including Vinatex in negotiations with the U.S. Trade Representative. The detailed industry data and impact analysis reports provided by the association provide sufficient information support for negotiations.

In response to rules of origin , after the signing of the CPTPP agreement, VITAS provided specialized training for Vinatex and other companies to help them understand and adapt to the new rules of origin and ensure they can enjoy tariff preferences.

Sustainable development transformation , VITAS cooperates with international buyers and environmental organizations to promote the sustainable development of the industry. Vinatex participated in the “Vietnam Textile and Clothing Green Project” led by the association, successfully improved the environmental protection standards of production and won more high-end international orders.

Supply chain integration . Through the supply chain docking platform built by VITAS, Vinatex has successfully established a more stable cooperative relationship with upstream fabric suppliers, reducing its reliance on imported fabrics.

Despite trade difficulties and pandemic challenges, Vinatex’s exports grew from US$2.8 billion in 2018 to US$3.5 billion in 2022. The company’s achievements in sustainable development have also gained international recognition, becoming the preferred supplier for global brands such as H&M and Uniqlo.

Vinamilk: Enhance international competitiveness through Vietnam Food Association

Vietnam Dairy Joint Stock Company (Vinamilk) is the largest dairy company in Vietnam. Its rapid development benefits from close cooperation with the Vietnam Food Association (VFA).

Standard upgrade , VFA assisted Vinamilk in formulating Vietnam’s national dairy standards, making them both in line with international standards and adaptable to local consumption habits, laying the foundation for Vinamilk to enter the international market.

Export promotion , through the international food exhibition organized by VFA, Vinamilk has successfully opened up the Middle East market and has now become one of the largest condensed milk suppliers in the Middle East.

Scientific research cooperation , VFA matchmaking, initiated the R&D cooperation between Vinamilk and Wageningen University in the Netherlands, improving the company’s product innovation capabilities.

Crisis response : During the African swine fever outbreak in 2019, VFA helped Vinamilk adjust its raw milk procurement strategy in a timely manner, effectively avoiding risks.

Vinamilk’s current products have been exported to 54 countries and regions, and international business activities have increased from 15% in 2015 to 25% in 2022. The company has also been listed in the “Top 50 Global Dairy Companies” for many years in a row and is the only dairy company in Vietnam to be on the list.

These cases clearly illustrate the key role that industry associations can play in business development. From technology upgrading to international market development, from policy debates to crisis response, industry associations provide enterprises with all-round support. Companies that hope to achieve success in the Vietnamese market say that actively participating in and making full use of industry resources is undoubtedly a wise choice.

Challenges and considerations

Although Vietnam industry associations provide a wealth of resources and opportunities for enterprises, during the actual participation process, enterprises may still face some challenges and need to pay attention to some key matters. Fully understanding and effectively addressing these challenges is critical to maximizing the value of association resources for businesses.

language and cultural barriers

Language and cultural barriers are one of the most common challenges businesses face when participating in Vietnamese industry association activities. Although Vietnam’s business environment is eager to internationalize, Vietnamese is still the main language used on many occasions.

First, companies recognize that language is not just a tool for communication, but also the key to understanding local business culture and building trusting relationships. Therefore, companies should invest in building language capabilities. This could include providing Vietnamese language training to key personnel or hiring local staff with bilingual skills. For example, Siemens Vietnam has specially set up a “Language Ambassador” project, with employees proficient in Vietnamese serving as a communication bridge between the company and industry associations.

Secondly, companies should have a deep understanding of Vietnamese business etiquette and cultural customs. In Vietnam, the culture of involvement and “face” plays an important role in business dealings. For example, at an association event, the exchange of appropriate pleasantries and small gifts may be more helpful in building relationships than direct business discussions. Companies can consider providing cross-cultural training for employees or hiring local consultants to provide guidance.

In addition, companies should also pay attention to the use of honorifics in formal situations and verbal communication. Vietnamese has a complex system of honorifics, and using them improperly can come across as unprofessional or disrespectful. It is recommended that businesses develop a communication guide in Vietnamese, especially for interactions with senior association members or government officials.

Finally, companies recognize that effectively overcoming language and cultural barriers is a long-term process that requires ongoing effort and learning. An internal knowledge-sharing platform can be established to encourage employees to share cultural opinions and lessons learned from their interactions with the association.

Member Duties and Responsibilities

Becoming a member of an industry association not only means obtaining rights and resources, but also assuming certain obligations and responsibilities. Fully understanding and fulfilling these obligations is critical to maintaining good association relationships and enhancing membership value.

First, companies need to carefully read and understand the association’s articles of association and membership agreement. These documents usually detail members’ rights, obligations and rules of conduct. For example, many associations require members to provide regular company operating data to support industry research and policy development. Companies should establish an internal process to ensure that this information is provided in a timely and accurate manner, while also taking care to protect trade secrets.

Secondly, active participation in association activities is one of the important responsibilities of members. This includes not only attending meetings and trainings, but also providing support to the association’s work when necessary. For example, when the association needs corporate cases to support policies, member companies should recommend that the company designate a dedicated person to be responsible for association affairs to ensure that various requirements of the association can be responded to in a timely manner.

Timely payment of membership dues is also an important member obligation. Different levels of membership may have different membership dues standards. Enterprises should choose the appropriate membership level according to their own circumstances and ensure that dues are paid on time. Some associations, such as the Vietnam Chamber of Commerce and Industry (VCCI), also encourage members to provide additional support through sponsored events. Businesses can view this support as an investment in increasing industry impact.

In addition, adhering to industry ethics and best practices is an important member responsibility. Many associations have developed industry self-regulatory or ethical codes, and member companies are expected to strictly abide by these regulations. For example, the Vietnam Advertising Association (VAA) has developed detailed advertising ethics rules that member companies must abide by in their advertising activities.

As a member of the association, companies also have a responsibility to contribute to the overall development of the industry. This may include sharing best practices, participating in the development of industry standards, supporting industry talent development programs, etc. For example, some leading IT companies use the platform of the Vietnam Software and Information Technology Services Association (VINASA) to provide guidance for IT courses in Vietnamese universities and promote talent cultivation in the entire industry.

Strictly verify information

Although the information sources of industry associations are valuable, companies still need to strictly treat the information obtained by the associations and establish effective key mechanisms for information verification. Businesses should be aware that even information from authoritative associations may have delays or limitations. For example, in a rapidly changing market environment, industry reports issued by the association may not reflect the latest market developments in a timely manner. Therefore, enterprises should establish a multi-channel information collection and cross-verification system to compare related information with other sources (such as market research reports, government announcements, primary market research, etc.).

Second, companies should pay attention to the context and potential bias of the information. As a representative of the industry, the information released by the association may have certain relevance. For example, during policy deliberations, associations may highlight data that is favorable to the industry. Develop critical thinking to fully analyze the sources, collection methods and potential impact of information to make judgments.

In addition, companies should also pay attention to distinguishing between factual information and opinion information. The Association’s expert opinions, while valuable, should not be considered absolute truth. It is recommended that enterprises establish an internal information evaluation mechanism, where professionals from different departments jointly analyze and discuss important information to form a more comprehensive understanding.

When using market data provided by the association, companies should understand in detail the data collection method, sample scope and update frequency. Some associations may not be able to conduct comprehensive market research due to resource constraints. In this case, the enterprise may need to supplement the market research conducted by itself, or purchase a report from a professional market research agency to verify and supplement the associated data.

In general, although participating in Vietnam industry association activities faces some challenges, as long as companies can effectively deal with language and cultural barriers, conscientiously fulfill their obligations, and strictly verify information, they can increase the value of association resources. This will not only help enterprises better integrate into the Vietnamese market, but also lay a solid foundation for long-term development. In a rapidly changing business environment, this thoughtful approach to engagement will be a key factor in achieving sustained competitive advantage.

future outlook

The development trend of Vietnam’s industry associations will closely revolve around the national economic strategy and global industrial changes. First, it is expected that industry associations will become more professional and refined in the future. With the continuous optimization of the industrial structure and the rise of emerging industries, some cross-industry or emerging field associations may emerge. For example, with Vietnam’s rapid development in electric vehicles and renewable energy, we may see the establishment of dedicated electric vehicle industry associations or clean energy associations. This trend has led to associations being able to provide more precise services tailored to the needs of specific industries.

Secondly, the governance structure and operating model of industry associations will be more modern and transparent. The Vietnamese government is promoting the reform of social organizations and encouraging associations to increase their autonomy and professionalism. We can foresee that future industry associations will adopt a more democratic governance structure, such as introducing an independent director system, or establishing a more complete member feedback mechanism. This will help increase the credibility and efficiency of the association.

The role of industry associations in the policy formulation process will be further enhanced. As the Vietnamese government pays more and more attention to the “bottom-up” policy formulation approach, industry associations, as a bridge between the government and enterprises, will receive more attention for their policy recommendations and industry insights. We may see more associations set up dedicated policy research departments, or cooperate with think tanks to provide more professional and in-depth policy advice.

The service model of industry associations will be more recognized and personalized. With the diversification of user needs, the association will no longer be limited to traditional information sharing and network services, but may involve more areas, such as intellectual property protection, international certification coaching, and even incubator and accelerator services. For example, the Vietnam Software and Information Technology Services Association (VINASA) has begun exploring the provision of incubation services for some companies.

The impact of digital transformation on industry associations

Digital transformation will profoundly change the way industry associations operate and service models. First, digital technology will significantly improve the operational efficiency of associations. We can expect that more associations will adopt enterprise resource planning (ERP) systems to manage membership relationships, event organization and financial operations. For example, the Vietnam Chamber of Commerce and Industry (VCCI) has begun using a CRM system to optimize member services.

Secondly, digital platforms will become the main channel through which associations provide services. Virtual conferences, online training, and digital exhibitions will become the norm. This will not only improve service accessibility, but also significantly expand the association’s service scope. For example, the Vietnam Textile and Apparel Association (VITAS) has begun trying to use VR technology to display the production facilities of Vietnamese textile companies and help overseas buyers conduct remote pilots.

The correlation brought by big data and artificial intelligence technology can provide more accurate and personalized services. By analyzing users’ interaction data and demand patterns, correlation can provide customized information and services for different types of users. For example, the Vietnam Food Association (VFA) is developing an AI-based market forecasting system to provide nutritional market insights for food companies of different sizes.

In addition, blockchain technology may play an important role in industry self-regulation and standard enforcement. For example, in terms of product traceability and quality certification, blockchain technology can help associations establish a more credible and efficient certification system. The Vietnam Aquatic Products Association (VASEP) has begun exploring the use of blockchain technology to improve the traceability of aquatic products.

New opportunities for international cooperation

As Vietnam further advances its integration into the global economy, industry associations will face new challenges in international cooperation. First, regional economic integration will allow associations to give up looser space for cooperation. With the in-depth implementation of regional free trade agreements such as RCEP, Vietnam Industry Associations will have more opportunities to cooperate with chambers of commerce and industry in other ASEAN countries. For example, we may see the Vietnam Chamber of Commerce and Industry (VCCI) establish a joint regional alliance of business associations with chambers of commerce and industry in other ASEAN countries.

Secondly, the “Belt and Road” initiative provides a new international cooperation platform for Vietnamese industry associations. Vietnam is an important country in the Belt and Road Initiative, and its industry associations can deepen cooperation with industry organizations in China and other participating countries. The Vietnam Building Materials Association has begun cooperation with the China Building Materials Federation on green building standards.

The restructuring of global value chains has created new roles for Vietnamese industry associations. As Vietnam’s status in the global supply chain improves, industry associations can play a greater role in helping local companies integrate into the international industrial chain. The Electronics Industry Association (VEIA) may establish closer cooperative relationships with downstream associations in the global electronics industry chain to promote technology transfer and industrial upgrading.

In addition, global challenges such as climate change, digital economic governance and other issues have also provided new directions for international cooperation among industry associations. We may see Vietnamese industry associations become more involved in global industry organizations and make Vietnam’s voice heard in international standard setting and global governance. For example, the Vietnam Software and Information Technology Services Association (VINASA) may become more deeply involved in international data governance discussions.

Overall, the future development of Vietnamese industry associations is full of opportunities and challenges. Digital transformation will deepen the association’s operating model and service methods, while deepened international cooperation will expand the association’s influence and service scope. Faced with these changes, industry associations need to continue to innovate and improve their capabilities to better serve members and promote industry development. For companies that want to succeed in the Vietnamese market, paying close attention to and actively participating in these changes in industry associations will help them maintain a competitive advantage in the rapidly changing business environment.

Frequently Asked Questions (FAQ)

Q1 : Can foreign companies join industry associations in Vietnam?

A1 : Yes, most Vietnamese industry associations welcome foreign companies to join. Generally speaking, as long as an enterprise has a registered legal entity in Vietnam and its business scope is related to the association, it can apply to become a member. Some associations even have special membership categories for multinational companies.

Q2 : How much does it cost to join an industry association?

A2 : Association fees vary and are usually based on business size and membership type. Generally speaking, annual fees can range from a few thousand dollars to a few thousand dollars. Some large associations such as the Vietnam Chamber of Commerce and Industry (VCCI) may have higher membership dues. It is recommended to contact the interested association directly to inquire about specific fees.

Q3 : Are all activities and services of the association in Vietnamese?

A3 : This depends on the specific association and nature of the event. Many large associations that cater to international members, such as the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Software and Information Technology Services Association (VINASA), often offer services in English. Some international events are also conducted in English. , many local events and documents may be primarily in Vietnamese. If you have language needs, it is recommended to communicate with the association before joining.

Q4 : How to evaluate the influence and value of an industry association?

A4 : You can consider the following aspects:

• Number and composition of membership: participation level of large enterprises and multinational corporations
• Relationship with the government: whether you regularly participate in policy consultations and whether you can influence industry policies
• Frequency and scale of events: the scale and influence of exhibitions and seminars held
• Media exposure: frequency of appearance in mainstream media
• International connections: degree of cooperation with international organizations
• Member feedback: You can communicate with existing members to understand their participation experience

Q5 : Is it necessary to join multiple relevant associations?

A5 : It depends on your business needs and resources. Joining multiple associations can broaden your network and gain access to more diverse information and resources. But it also means more time and money investment. It is recommended to get deeply involved in one of the most relevant associations first, and then gradually evaluate the value of other associations based on your needs.