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