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Vietnamese Ad Market is Expanding 25%-30% Annually

News, 25 July 2006

The Vietnam Advertising Association said Monday that increased activity by foreign firms is driving growth in the nation's advertising market at an annual rate of between 25% and 30%.

The nation's nascent advertising industry is predicted to garner combined revenues of 24 trillion Vietnamese dong ($1.5bn; €1.18bn; £807.1m) by 2020, up from around 5tr dong in 2005.

But, notes VAA vice chairman Nguyen Quy Cap: "Most Vietnamese advertising companies just engage in doing outsourcing contracts or supplying services to foreign advertisers."

Until now, around 80% of recent annual revenues have been generated by some fifty foreign advertising firms and representative offices - among them Saatchi & Saatchi, McCann-Erickson, Dentsu, and JWT.

Of nearly 3,000 indigenous enterprises, says the VAA, only 50-100 currently operate as dedicated advertising companies. However, the VAA is optimistic this situation will change when Vietnam is accepted into membership of the World Trade Organization - hopefully later this year.

Data sourced from People's Daily Online (Xinhua); additional content by WARC staff