Vietnam continues to offer attractive business opportunities for foreign companies, particularly Japanese enterprises seeking to enter or expand in the market. While market research provides valuable insights into market trends, customer demand, and competitive conditions, these findings do not always confirm whether a specific business opportunity is commercially feasible. Moving from market research to market validation allows companies to test key business assumptions through direct engagement with local customers, experts, and potential partners.

Market background: Why Vietnam keeps attracting investors

Vietnam continues to attract foreign businesses looking to enter the market or expand their existing operations. Japanese companies, in particular, have maintained a strong interest in the country. According to the Japan External Trade Organization (JETRO), 56.9% of Japanese companies operating in Vietnam planned to expand their businesses within the next one to two years in 2025. The proportion has remained above 55% since 2021, showing relatively stable expansion intentions despite changes in the business environment[1].

Share of Japanese Companies in Vietnam Planning Business Expansion, 2021 – 2025

Unit: %

Source: JETRO, FY2025 Survey on Business Conditions of Japanese Companies Operating Overseas (Asia and Oceania)

For foreign companies, Vietnam market research is often the first step in assessing opportunities for entry or expansion. Information on market demand, competition, customer segments, and distribution channels can help companies understand where opportunities exist and what challenges they may face. However, these findings are only part of the picture. A growing market does not necessarily indicate demand for a particular product, and identifying potential customers or distributors does not mean they are ready to do business.

From Market Research to Market Validation

Market research provides companies with an overview of the business environment, including market size, industry trends, customer segments, and competition. However, a promising market does not necessarily guarantee success for a particular product or business model. Even when research identifies potential demand, companies still need to determine whether their products meet local requirements, whether customers are willing to pay the proposed prices, and whether suitable business partners are available.

Market validation is the process of assessing whether a product, service, or business idea is likely to meet the needs of its target market. This involves gathering feedback from potential customers and testing assumptions about market demand before making major business decisions[2]. Beyond customer acceptance, companies also need to consider whether their business plans are commercially viable and operationally feasible. Strategyzer identifies three important aspects when evaluating business opportunities: desirability, viability, and feasibility[3].

From Market Research Findings to Questions Requiring Validation

Source: B&Company synthesis

Businesses can complement desk research with direct market engagement, such as customer and expert interviews, market observation, product testing, business matching, and factory visits to answer those questions. While research agencies can support these activities by identifying relevant stakeholders, arranging meetings, and collecting information, direct participation by company representatives can provide additional value. It allows businesses to ask follow-up questions, observe local practices, and better understand the reasoning behind customer or partner feedback. However, stated interest alone should not be treated as confirmed demand, as actual customer behavior may differ from what respondents say during interviews[4].

Market Examples Validation in Practice: Real Business Cases in Vietnam

Market validation can take different forms depending on a company’s business objectives and the information needed before making investment decisions. Drawing on B&Company’s project experience and selected business cases in Vietnam, the following examples illustrate how market validation activities can support companies in assessing market opportunities, evaluating potential partners, and making business decisions.

Examples of Market Validation in Vietnam

Sources: B&Company project experience and JETRO

How B&Company Can Support Market Validation in Vietnam

B&Company combines Vietnam market research with practical field activities to help foreign companies verify their initial findings and assess business opportunities under actual market conditions. Required support can vary depending on the business and its plans in Vietnam. Companies considering market entry may need to learn more about potential customers, purchasing preferences, and local competition.

Depending on the client’s needs, B&Company provides support through:

– Customer and expert interviews: Gathering direct feedback on customer preferences, product requirements, purchasing behavior, and industry conditions.

– Partner identification and business matching: Finding and screening potential distributors, suppliers, and business partners, as well as arranging meetings to explore cooperation opportunities.

– Factory and site visits: Assessing production capabilities, quality control practices, and operating conditions of potential partners.

– Exhibition participation and market observation tours: Helping companies observe local market conditions, examine competing products, and engage directly with relevant businesses

By combining market research with practical market validation activities, B&Company helps foreign companies gain a clearer understanding of local business conditions and assess the feasibility of their plans. These findings provide a basis for refining market entry strategies, evaluating potential partnerships, and making more informed decisions on business development and expansion in Vietnam.

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Choosing the right Field Activity for your business goal

From Market research to Business support: How companies can enter Vietnam successfully

* If you wish to quote any information from this article, please kindly cite the source along with the link to the original article to respect copyright.

[1] https://www.jetro.go.jp/ext_images/en/reports/survey/pdf/2025/EN_Asia_and_Oceania_2025_r.pdf

[2] https://www.shopify.com/ph/blog/market-validation

[3] https://www.strategyzer.com/library/how-to-test-your-idea-start-with-the-most-critical-hypotheses

[4] https://www.strategyzer.com/library/the-one-biggest-error-in-customer-interviews-mistaking-opinions-for-facts

[5] https://b-company.jp/vi/bcompanys-journey-with-clients-to-find-partners-in-vietnam-in-the-field-of-mechanical-processing/

[6] B&Company internal project information, JETRO Hanoi Food & Beverage Business Matching and Product Testing (2025)

[7] B&Company and JETRO Japanese Food Taste Survey, 2022

[8] https://b-company.jp/vi/viatt-2026-invitation-to-vietnam-international-trade-fair-for-apparel-textiles-and-textile-technologies-2026/

[9] https://www.jetro.go.jp/case_study/2018/ichioka-seika.html