With the increase of technology industry in Vietnam, more and more companies in Vietnam have a chance to use the ERP solution. Definitely, the ERP solution has improved productivity for both medium and large enterprises. However, this growth will gradually slow down since small companies, which see the ERP as an unnecessary business tool to invest, account for a big proportion in Vietnam economic structure. In this article, the trend of Vietnamese ERP market as well as some guidance for any global brands who want to enter this market will be shown in detail.

Recent researches have illustrated the trend of localization in ERP products. This means that the ERP must mainly satisfy customer demand in terms of the working style of Vietnamese companies. One of the expressions is that the percentage usage local ERP exceeds that of global ERP. Moreover, while local ERP are launching better and better customization products which are suitable with the international standard, global brands offer lower price, making their solution customizable at a moderate level.

There are several reasons for the rise of Local ERP:

PRODUCT

Instead of standard edition, local brands are providing direct solutions for companies’ concerns. By understanding Vietnamese businesses deeply, especially the current accounting system, they are really satisfying their customers. Although global ERP are also trying to do this, their customization faces many difficulties. Oracle, as an example, is a case of failure. Their sales team promised to customize the standard edition of Oracle, but they could not meet the condition. Oracle was hard to use and have lots of error. Therefore, they have been abandoned until now.

Besides the customization, the design of local ERP is user-friendly and takes less time for training. It allows company owners to see the effect of applying the ERP.

PRICE

Researches suggest that most of the users of ERP in Vietnam are small and medium sized companies. As a result, one the most important criteria is price. Obviously, local ERP has many advantages in this aspect: they supply ERP themselves so they do not need to pay for license fee or any other types of fees to other distributors. Moreover, local solutions are usually practical and simple, so they can code them easily, with less time and do not require much professional technicians.

DISTRIBUTION

According to the figure below showing the current distribution channel, customers get their solution from global distributors or local manufacturers. Most distributors themselves provide both global ERP and local solutions. It becomes quite clear why customers prefer local ERP. They have a clear advantage: product suitability and price.

At the end, how can you enter the market with a foreign ERP solution?

It will be really difficult for new global brands to enter Vietnam because all of the current brands have their position in the market, building a certain customer network. However, by applying following guidance, penetrating market will become more possible.

PRODUCT

The brands using in current market, they have signature products in each industry. Wholesale and manufacturing industries consists of both local and global brands. However, there are several industries that do not yet have a particular signature product, such as information and communication, real estates, transportation and storage. These will be the potential industries.

To satisfy these industries, researching their niche demand is crucial to create the vertical module.

PRICE

The next step is creating a suitable price structure. Depending on your company strategy, the price will be decided

DISTRIBUTION

The third key action is finding an experienced partner in Vietnam. They will provide help in searching for potential customers as well as increasing your chance for success.

Based on characteristic of ERP market, it is better for new brands choose either exclusive or selective distributors. They are the ones that provide the best information about products for customers.

PROMOTION

Finally, promotion activities should focus on PR (especially customer related event or launching event)

ERP is one of the strengths of Rnext. We always work hard to help customers with the best ERP processes and systems.

Source: Internet