Vietnamese Market Study for Nordic Supplier of Raw Foundry Materials
The client, one of the leading suppliers of raw material to foundry-based products in the Nordics, considered to enter the Vietnamese market and decided to conduct a general study of potential customers and competitors on the new, but highly lucrative, market.
The aim of the project was to gain an overall understanding on the market size for foundry products in Vietnam, who the potential customers are, which competitors currently holds a presence on the market, and what actions are needed to enter the market.
The study involved an estimation of the foundry output in Vietnam over the past years, characteristics of the market, a list of potential large customers, a list of current competitors and their offered products. The study also identified highly important industry trends, laying the foundation for a successful market entry for the client.
Currently, Vietnam has an increasing trend of cast iron production, offering big opportunities, especially within the automotive, machinery, and shipbuilding sectors. More and more foundries in Vietnam are adopting new high-tech technologies for precision casting, offering a great opportunity for our client and their products.
Asia Perspective initiated the process by conducting a high-level desk study for the project.
During the desk research, a market analysis was established. The analysis included, but was not limited to, these key areas:
- Yearly output production of several cast-iron categories
- Market characteristics and trends
- Analysis of influential foundries in Vietnam
- Benchmark study of current competitors on the market
Asia Perspective helped the client identifying major trends of the Vietnamese cast-iron industry. Further, Asia Perspectives research also helped the client gain insights to which sectors offers the biggest opportunities in terms of market size and forecasted changes in the future. In overall, the segments of engineering, automotive and pipe-manufacturing was identified as most essential, as well as major competitors of supplying foundry products.
Based on the current output volumes and applied technology of the cast-iron industry in Vietnam, the market is considered not yet fully mature, but with huge potential for development in automotive and engineering segments within the near future. Sales and distribution of the raw material to foundry products are suggested to be done through major foundries or via main distributors to reach smaller foundries throughout the country.