Open an Office or Hire a Sales Representative in Vietnam?

Entering Vietnam: Open Your Own Office vs. Outsourced Sales Representative

For international manufacturers entering Vietnam, the first step often comes down to two options:

1. Establishing your own office/team, or

2. Hiring a local outsourced sales representative.

The decision is not only about absolute cost but also speed to market with minimal risk.

1) Direct & Indirect Costs of Opening Your Own Office

• Staffing: Hiring 1–2 sales staff (gross salary + allowances + social insurance typically 20–35% higher than net). Recruiting industry-ready talent is a major challenge.

• Office & Equipment: Workspace, internet, software, local travel, samples.

• Setup Time: 2–4 months for recruitment, training, and process setup – counted as “opportunity cost.”

• Risks: Revenue may lag while burn rate continues; terminating contracts/legal issues can be complex.

2) Hiring a Local Outsourced Sales Representative

• Lower Fixed Costs: Flexible packages, with the ability to test the market for 1–3 months before scaling.

• Speed: Pre-verified databases, proven outreach scripts, and local communication channels (Zalo, phone, email) enable market entry within weeks.

• Managed Risk: Transparent service contracts tied to KPIs (response rates, qualified leads – SQL). Easy to pause or scale up.

3) Simple ROI Model

ROI ≈ (Expected sales over 6 months – Total costs) / Total costs

• Scenario A – Own Office: 6-month costs include salaries + setup + cost of ownership (COO) ≈ 1x.

• Scenario B – Outsourced Rep: Service fees + variable costs (samples, meetings).

When average deal value is high and sales cycles are long, outsourcing reduces risk and validates the market before deeper investment.

4) Key Decision Factors

• Product Complexity: The more technical the product, the greater the need for experienced local sales talent.

• Vietnam Buying Cycle: Buyers often prefer initial email, then switch to Zalo/phone for faster discussion – requiring bilingual reps with cultural fluency.

• 90-Day Objectives: If your immediate goal is market feedback, meetings, and a list of SQLs, start with outsourced sales. Once channels stabilize, consider opening your own office.

Conclusion

There is no one-size-fits-all answer. However, during the first 6–12 months, hiring an outsourced sales representative allows you to:

• Validate market demand

• Optimize your messaging

• Conserve capital

When your pipeline is strong enough, you’ll have the data to justify long-term investment in a local office.