Entering the Vietnamese market: Localize to convince in the South Asian region

Vietnam is one of Southeast Asia's most promising markets. With a bustling economy expected to grow by 6.5% in 2025, it offers immense opportunities for startups, service providers, and creative agencies looking to expand into the area.

However, it cannot be tackled as just another stop in your expansion journey. While some businesses may see basic translation sufficient, successful penetration into the Vietnamese market requires a more nuanced approach. Without proper Vietnamese localization, it's not possible to really reach customers.

This guide will help you navigate the complicated but rewarding path to Vietnam market entry, including (but not limited to) its high-context culture and its people’s love for word play, indirectness in speech, and local-to-local uniqueness, ensuring your brand resonates with native audiences and stands out for the better.

🏵️ South Asia's most promising market 🔗

Vietnam’s economy has been undergoing remarkable growth in the last decade, making it an attractive destination for investment. With a rising middle class and increasing digital adoption, businesses can tap into a consumer base eager for innovative products and services.

Let’s take a closer look at the main factors driving this growth.

A booming economy 🔗

Vietnam is one of the continent's fastest-growing economies, with a robust expansion in the technology, manufacturing, and service sectors. 📈 The country’s GDP has consistently outperformed many of its regional counterparts, highlighting its status as a rising star in Southeast Asia. According to the Vietnam’s National Statistics Office, Vietnam’s GDP grew by an impressive 6.93% in the first quarter of 2025, positioning it as a top performer in the region and the globe.

Young and tech-savvy population 🔗

With a median age of just 30, Vietnam boasts a young, digitally connected population. This demographic is not only comfortable with technology but also increasingly reliant on e-commerce, making it a prime market for digital products and services. Vietnam also has one of the highest rates of internet penetration in Southeast Asia, with over 70 million active internet users.

Strong international trade relations 🔗

Vietnam's openness to foreign investment, bolstered by free trade agreements, creates an ideal environment for businesses looking to expand. The Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) are just a couple of examples of how Vietnam is positioning itself as a global trade hub. American companies like Intel, Nvidia, Boeing, or P&G Group are already thriving in the country.

Increased digitalization 🔗

The pandemic accelerated digital adoption in the country, with a significant rise in e-commerce, where the number of users is expected to reach 36 million by 2029. Localization will be a requisite for businesses that seek to connect with Vietnamese consumers through these channels.

⏩ Top industries in Vietnam: where to focus? 🔗

As Vietnam moves up the value chain, sectors such as manufacturing, tech, and services are not only expanding but also giving rise to a range of supporting and secondary industries. Here are four standout sectors that are gaining momentum:

⛱️ Tourism & Hospitality 🔗

Vietnam’s rich culture and stunning destinations draw millions of international visitors each year. Since reopening post-pandemic, the country has seen a surge in tourism and a wave of fresh investment in its hospitality sector.

🏭 Manufacturing 🔗

Vietnam has carved out a major role in global production, especially in textiles and electronics. With low labor costs and favorable business policies, it’s become a top pick for companies rethinking their supply chains. As manufacturers move operations out of China, Vietnam is quickly taking a larger piece of the global manufacturing pie.

📲 Information technology 🔗

A joint report by Google, Temasek, and Bain (2022) projects the Vietnamese digital economy to reach $49 billion by 2025, with an annual growth of 29%. Solid internet access and rising consumer spending are reinforcing this trend, placing Vietnam among the most active digital markets in Southeast Asia. A young, digital-native workforce and rising demand in e-commerce, fintech, and digital payments are proof of it.

👷 Construction 🔗

Vietnam is building fast. New roads, homes, and city projects are being constructed across the country, advancing its urbanization. This growth opens the door for companies with smart, practical solutions. Whether it’s transport, housing, or smart city initiatives, there’s space to get involved and make an impact.

Many factors are turning Vietnam into a country with huge economic potential, including a rising demand in digital services, a young and digital-native workforce, the rise of urban planning initiatives, a growing touristic interest, and favorable supply chain policies

🇻🇳 The Vietnamese language 🔗

Vietnamese, spoken by over 90 million people globally, is one of Southeast Asia's most prevalent languages. While primarily concentrated in Vietnam, it is also used by a significant overseas diaspora estimated at 5 to 6 million speakers.

A tonal language belonging to the Austroasiatic family, Vietnamese has roots intertwined with Chinese and French due to the influences of these countries during their respective rules in the region. The influence of Chinese over the centuries has been especially predominant. During the Ngo Dynasty, Classical Chinese became the primary language for governance, scholarship, and literature in the region, resulting in the widespread integration of Chinese vocabulary into Vietnamese. This combination resulted in the Sino-Vietnamese vocabulary (literally translated as “Chinese-Vietnamese words”), which makes up one-third of the Vietnamese lexicon, with formal texts often containing up to 60% Chinese-based vocabulary.

Vietnamese is spoken by over 90 million people as their first language, making it one of the most widely spoken languages in Southeast Asia

Like many languages in Southeast Asia and East Asia, Vietnamese is highly analytic and tonal. This means that the language has distinct tones that can alter meanings; for example, the word ma can mean "ghost," mạ ("mother"), mà ("but"), or mạ in gieo mạ ("rice seedling"), depending on its tone.

A unique script 🔗

The Vietnamese writing system, also known as chữ Quốc ngữ, is based on the Latin alphabet, including additional characters that represent sounds that are unique to the language. The script was developed in the early 17th century by European Catholic missionaries, notably Alexandre de Rhodes, who adapted Latin letters and added diacritics to represent Vietnamese tones and sounds, creating his own dictionary. It gradually replaced the complex Chinese-based scripts chữ Hán and chữ Nôm, which were difficult to learn and limited to scholars. Promoted by French colonial authorities and Vietnamese reformers in the 19th and early 20th centuries, chữ Quốc ngữ became the official and dominant script, greatly increasing literacy and making it the primary way to write Vietnamese today.

The accurate handling of diacritics is critical for the localization of this script, since a single missing or misplaced accent mark can alter meaning entirely, potentially causing confusion or offense. Additionally, some fonts or software that aren’t optimized for Vietnamese may render diacritics improperly, affecting readability and user trust. Therefore, successful localization in Vietnam requires careful attention to character encoding, font support, and tone accuracy, especially in UI/UX design and automated systems.

Dialects and slang 🔗

The Vietnamese language has three primary dialects. Each dialect has its own vocabulary and pronunciation. Cultural differences also count here since they affect the language usage in every dialect. Particularly, some important differences affect tone and style:

• 🛺 Northern (Hanoi): This dialect is the basis for standard Vietnamese. It is most frequently used in media, education, and official contexts. Its origin region has an older population on average, with more government presence and traditional institutions, which results in a more formal language use and social structures.
• 👘 Central (Hue, Quang Binh, Quang Tri, Thanh Hoa, Nghe An, Ha Tinh): The dialects of the historically poorer and often rural regions are known for their distinct tone and are least mutually intelligible with others, partly due to mountainous isolation. Known for a high degree of regional pride and strong local identity, these are the most distinctive and difficult to grasp of the three.
• 🌆 Southern (Ho Chi Minh City): Younger, more urban, and more dynamic economically, this Vietnamese dialect is more casual and relaxed in tone and pronunciation. English influences are more notable since the region has had a greater international exposure due to commerce and historical US presence. This is why it is often considered more accessible and friendly in commercial contexts, especially in marketing.

For businesses looking to localize effectively, understanding these regional differences is paramount. For example, a simple word as "fork" 🍴can create misunderstandings, as it's called differently in the North (dĩa) and the South (nĩa). The problem gets even messier when the Northern dĩa can be mistaken for the Southern term for "plate" (also pronounced dĩa), which is written as đĩa in the North dialect. We will look into more examples later.

The Vietnamese diaspora 🔗

The largest communities of Vietnamese speakers outside of Vietnam can be found in the United States, with over 2.3 million Vietnamese-Americans, alongside significant populations in France, Australia, and Germany. Smaller but historically important communities are also found in Southeast Asia, particularly in Cambodia.

Overseas Vietnamese continue to maintain strong cultural connections, including the continued use of the language, the observance of traditional festivals such as Tết (Lunar New Year), and close familial and economic ties. However, it should be noted that they have a significantly different usage of Vietnamese vocabulary, sense of humor, or trending expressions, as well as diverging political ideas. All should be considered reasonably if any company wants to reach this specifically small but potential sub-market.

🌾 8 localization tips to succeed in Vietnam 🔗

Commonly, Western companies enter the Vietnamese market with misconceptions about its language and culture. They tend to underestimate cultural differences, misinterpret communication styles, fail to localize their marketing efforts, and misjudge market potential (e.g., thinking Vietnam is just a third-world country where there's no interest or purchasing power for high-end products).

They may also think that English can be enough for their first foray into the market and ignore that, even though its influence is growing in urban areas and schools, it has a limited reach outside the major cities (with proficiency rated moderate to low). In business contexts, Vietnamese still takes the lead.

These tips can help you avoid following in their footsteps.

1. Pay attention to personal pronouns 🔗

Vietnamese uses a variety of personal pronouns that reflect respect and social hierarchy. Understanding this is essential for effective communication with the local audience. 🧑‍🧒‍🧒 For example, using "anh" (brother) or "chị" (sister) can help create a more personal and respectful connection. Simply translating "you" from English to "bạn" in Vietnamese without considering the context can come across as distant and impersonal.

In commercial texts or advertisements, this misstep can be especially problematic. Imagine bringing a Western-style advertisement into Vietnam that uses direct phrases like "you" or "I" — you'll quickly realize how important it is to localize your content from the start.

2. Use local idioms and expressions 🔗

Local idioms and expressions can make your content feel more relatable and natural. For instance, in Vietnam, people typically don’t use "hello" or "good morning" as greetings. If your English source text includes these phrases, consider localizing them to something like “ô, đang làm gì đấy?” ("Hey, what are you doing?"), which is a more common greeting in Vietnamese culture.

3. Pay attention to line breaks and punctuation 🔗

In Vietnamese, punctuation and line breaks can change the meaning of a sentence. It’s important to use them correctly, as mistakes can cause confusion. For example, in 2012 a government slogan —"Mỗi gia đình hai con, vợ chồng hạnh phúc" ("Two children per family, the wife and husband will be happy") — was accidentally misinterpreted as "Mỗi gia đình hai con vợ chồng hạnh phúc" ("Two wives per family, the husband will be happy"). This happened because a line break was placed incorrectly and there was no punctuation, turning "hai con vợ..." into "two wives...". You can imagine the consequences. 🤦🏻‍♀️

4. Consider word expansion 🔗

Vietnamese translations can be up to 30% longer than English, so it's important to choose words carefully. For example, a message that fits on one line in English may take two or three lines in Vietnamese. 🎓 The word “university” is one word in English, but in Vietnamese, it’s “đại học,” which is two words.

If the message is aimed at older people, you may need extra words to show respect. For example, in a 2011 advert for Rejoice shampoo with Miss Vietnam Mai Phuong Thuy, the line "À không, chỉ là Rejoice" ("Oh, no, just Rejoice") should have been changed to "Dạ, không phải đâu ạ, con chỉ dùng dầu gội Rejoice thôi" ("Dạ" and "ạ" are used for politeness, and "con" shows respect). This detail looks small, but it caused outrage in the community because the statement sounded offensive.

5. Avoid literal translations 🔗

The tonal nature of Vietnamese means that direct translations may not convey intended meanings. This makes working with skilled translators who understand the culture a must. Literal translations can lead to confusion, as they often miss the context and emotion behind the message.

For example, the KFC tagline in English is "Finger-lickin' good", and the literal Vietnamese translation for it is "Ngon đến liếm ngón tay." While technically accurate, this can sound odd or even unappetizing to Vietnamese audiences, since phrases involving licking fingers might evoke imagery that's not culturally appealing. It might even be seen as unsanitary or unrefined, clashing with local dining norms. To achieve a culturally appropriate Vietnamese translation, KFC Vietnam adapted the slogan to: "Vị ngon trên từng ngón tay" (meaning: "Delicious taste on each finger"), making it a great example of localization for this market.

6. Let culture guide your design 🔗

UX design needs to match local preferences. In Vietnam, that means focusing on mobile-first design, local imagery, and interfaces that reflect Vietnamese tastes. The Shopee platform is a solid example of this. Most internet users in Vietnam go online using their smartphones instead of desktop computers. Shopee's app was built with that in mind — it's light, loads quickly, and works well even on older phones or with slow connections.

Shopee also includes Vietnamese cultural elements in its design. During certain seasons, like Tet (Lunar New Year), the app features banners with red and yellow tones, which represent luck and prosperity in Vietnamese culture. It even adds features like a digital 💰“lì xì” (lucky money) system. These small touches help users feel recognized and understood.

Vietnamese consumers often love gamified experiences, so Shopee uses features like “Shake & Win” and mini-games to keep people engaged and offer fun rewards. All of this shows how customizing your UX design to local habits and culture, from mobile-friendly layouts to visuals and features with cultural meaning, can build stronger connections and impact loyalty. It turns a standard app into something that feels made just for them.

Small touches in your user experience, like referencing cultural events, going mobile-first, or gamifying some features, can made your Vietnamese users feel recognized and understood

7. Use the right tone depending on the audience 🔗

Respect and formality are key parts of communication in Vietnam. These values shape how messages are received, especially in marketing. When you use a respectful and formal tone, people are more likely to trust what you say. This is especially true when speaking to older adults or people in leadership roles. Formal language shows you understand and respect their place in society.

If your message is for younger people or meant to entertain, a casual style often works better. It feels more natural and helps you connect. The key is to adjust your language based on who you are talking to. When your tone matches your audience, your message becomes more effective and feels more thoughtful.

8. Provide suitable payment methods 🔗

Vietnamese consumers often prefer cash on delivery and local digital wallets over credit cards. Services like MoMo and ZaloPay are widely trusted and used across the country. If your business doesn’t support these options, you risk losing potential customers.

🚨 Mistakes to avoid in Vietnamese localization 🔗

When you localize your business for the Vietnam ecosystem, it’s easy to make mistakes that could harm your success. Here are some things you should avoid:

• ❌ Relying too much on English: Many Vietnamese understand basic English, but using it as your main language can turn people away. To connect with local audiences, Vietnamese should be the primary language for marketing and communication.
• ❌ Ignoring local dialects: Vietnam has clear regional differences in language across the North, Central, and South. Not recognizing these can lead to confusion and weaken your brand. Working with local experts helps you avoid mistakes and connect better with your audience.
• ❌ Ignoring regional purchasing habits: In Vietnam, people often prioritize family-oriented messaging over individual appeal, especially when shopping for household items. Word-of-mouth is powerful, and recommendations from friends, family, or local influencers carry more weight than celebrity endorsements. Bargaining is common, and discounts or deals matter, even in formal retail. Meanwhile, Western consumers tend to value individual benefits, expert reviews, and fixed pricing. Failing to adapt to these habits can damage trust and reduce engagement.

Word-of-mouth, family oriented-messaging and discounts matter in Vietnam — ignoring these habits can impact your success in the country

A real-life example that worked in Vietnam 🔗

A strong example is P&G’s Head & Shoulders 2021 campaign in Vietnam, where the brand turned common mispronunciations of its brand name into fun, relatable ads. Instead of opting for generic marketing, they partnered with local influencers from different regions to create a viral video that celebrated these differences. By adjusting the language, visuals, and product messaging to match local preferences, the campaign resonated across the country. This approach helped Head & Shoulders compete with Clear and earned P&G the Digital Marketing Strategy of the Year – Vietnam award.

⏩ Suggestions for your marketing strategy 🔗

Global brands that succeed in Vietnam often do so by adapting to local culture. McDonald’s, for example, introduced items like the "McPork" burger and Vietnamese chicken sandwich to match local tastes, creating a menu that feels familiar to local diners. Unilever renamed its “Fair & Lovely” product to “Glow & Lovely” to reflect Vietnamese beauty standards that value healthy, radiant skin over fairness. Taking inspiration from these examples, here are five strategies to localize your brand effectively in Vietnam:

1. Work with local influencers 🔗

Teaming up with Vietnamese influencers can boost visibility and build stronger consumer trust. Influencers who connect with both local audiences and the diaspora help brands feel more authentic and relatable. Coca-Cola’s 2015 “Share a Coke” campaign in Vietnam is a strong example. The brand partnered with local celebrities and KOLs (Key Opinion Leaders) to create personalized content, such as sharing bottles with their names and celebrating friendship. This tapped into the cultural importance of community and personal connections, making the campaign widely successful among young consumers.

2. Build a strong local social media presence 🔗

Vietnamese users are highly active on platforms like Facebook, Instagram, TikTok, and especially Zalo. As of 2024, Zalo leads as the country’s top messaging app with 80% penetration, outpacing Facebook and Messenger. Its wide use in daily life, from shopping to customer support and even government services, makes it a must for any brand entering the market. Creating localized content that taps into local trends and cultural moments on Zalo can boost engagement. With widespread smartphone use and low-cost internet, social media (especially Zalo) is a core channel for building brand awareness and customer relationships.

Zalo is a must for brands building a social media presence in Vietnam. It's widely used for communication, shopping, and even government services

3. Host and sponsor local events 🔗

Connecting with Vietnamese communities through local events and sponsorships can boost brand visibility and trust. Celebrations like Tet and the Ao Dai Festival offer brands a chance to engage with rich cultural traditions through art, performances, and exhibitions. Sponsoring such events not only demonstrates commitment to the local market but also aligns the brand with heritage and national pride. Events like the Ho Chi Minh City International Tourism Expo attract wide audiences, making them ideal for building recognition while supporting the community.

4. Offer support that feels local and personal 🔗

When it comes to customer support, make sure you offer it in Vietnamese, not just through translation, but by truly understanding how people in Vietnam prefer to communicate. Train your team (whether in-house or outsourced) to be familiar with local customs, polite forms of address, and common concerns. Many Vietnamese customers expect fast responses, a friendly tone, and clear explanations. It's also helpful to support popular local platforms like Zalo for messaging. The more familiar and relatable your support feels, the more likely customers are to come back and recommend your brand.

5. Make an effort to understand customers' behaviors 🔗

To connect with Vietnamese consumers, it helps to understand what drives their decisions. Many are becoming more financially cautious, often prioritizing saving and low-risk investments. This means they’re more likely to trust brands that focus on safety, clarity, and long-term value.

Shopping habits are also changing. Shoppertainment is taking off, especially on platforms like TikTok, where buying is mixed with entertainment. Some good points to adapt here involve livestreaming shopping events, using product demos, and producing influencer-led content. These work better than traditional ads.

Dining is another area where preferences are shifting. Wealthier consumers are willing to pay more for premium dining experiences. Restaurants and F&B brands that offer exclusivity, perks, or special promotions can appeal to this segment.

Lastly, Gen Z is starting to step back from constant social media use, with many saying they’re planning to leave at least one platform. To reach them, brands need to focus less on loud promotion and more on honest, thoughtful, and low-pressure messaging that sticks. Focus on making your brand memorable rather than being everywhere.

🛶 Grow your business in Vietnam with Localazy 🔗

Expanding into Vietnam is a great chance for businesses looking to reach a growing and dynamic market and invest in localization for Southeast Asia. But to connect with Vietnamese consumers, you have to understand their culture, language, and buying preferences.

With Localazy, you get more than just translations or a TMS. We help ensure your brand speaks the language of your audience, from text to visuals. Our Figma plugin makes it easy to adapt your designs, and our continuous localization process helps keep everything on track with the help of native linguists. If you’re ready to take the first step, contact us and let's make your brand feel at home in Vietnam.