Vietnam market study for a Swiss manufacturer of high-volume machining systems

The client, a Swiss manufacturer of machining systems for high-volume precision parts, sells to manufacturers of connector contacts, pen tips, lock bodies, injection nozzles and similar small metal parts.

Many of the client's customers in China and elsewhere in Asia are moving production to Vietnam. Management wanted to know how big the opportunity in Vietnam is, which industries to target first and which local manufacturers could buy its machines.

• Vietnam's market data shows demand for end products, while the client sells to the companies that machine the parts inside them
• Several industries to compare: electronics and connectors, consumer goods, HVAC, data-centre cooling and electric vehicles
• Some of the client's existing customers already have plants in Vietnam, and these had to be mapped
• Management needed a clear order of priority to plan sales work

APAC Advantage ran the Vietnam pre-study. The work covered the industry review, the mapping of local manufacturers and the ranking of industries by sales potential for the client.

Ranked industries by local buyers

We ranked each industry by the number of manufacturers in Vietnam that machine the client's type of parts, since these are the companies that buy its machines. Market size and growth were used as supporting data.

Mapped manufacturers in each industry

For each industry we identified the manufacturers in Vietnam, what parts they make, where their plants are and whether they are expanding.

Matched the client's existing customers

We checked which of the client's existing customers already run plants in Vietnam. These give the client a starting point with companies that already know its machines.

Set the order of priority

We placed each industry in a High, Medium or Low tier. Electronics and connectors came out on top, consumer goods and HVAC in the middle, and data-centre cooling and electric vehicles as markets to monitor.

• A ranking of five industries by sales potential in Vietnam
• A list of local manufacturers that machine the client's type of parts
• Four existing customers identified with plants in Vietnam
• A clear order of priority for the client's sales work in Vietnam