Introduction: Vietnam – The Rising Star of Southeast Asia
Over the past decade, Vietnam has emerged as one of the fastest-growing economies in Southeast Asia. With a population of over 100 million, a young workforce, and a rapidly expanding middle class, Vietnam offers a wealth of opportunities for Singapore businesses seeking to grow beyond local shores.
From manufacturing and logistics to e-commerce, education, and technology, Vietnam’s dynamic market is attracting companies from around the world. Its government’s focus on infrastructure development and openness to foreign investment make it particularly appealing to Singapore SMEs.
To help local businesses take advantage of these opportunities, the Singapore government introduced the Market Readiness Assistance (MRA) Grant, which provides financial support for companies venturing overseas. For SMEs eyeing Vietnam, the MRA Grant is one of the most powerful tools available to reduce risk and accelerate market entry.
1. What Is the MRA Grant?
The Market Readiness Assistance (MRA) Grant is administered by Enterprise Singapore (ESG) to support Singapore-based SMEs in expanding into international markets.
It covers up to 50% of eligible costs, capped at S$100,000 per company per new market, across three key activity areas:
- Overseas Market Promotion – participating in trade fairs, marketing campaigns, and brand development.
- Overseas Business Development – identifying and engaging potential business partners, distributors, and customers.
- Overseas Market Setup – legal, advisory, and business incorporation expenses for establishing a presence abroad.
This grant helps SMEs reduce the initial financial burden of international expansion and enables them to enter new markets like Vietnam strategically and confidently.
2. Why Vietnam Should Be Your Next Destination
Vietnam’s business landscape is evolving rapidly. Over the past decade, the country has recorded an average annual GDP growth rate of around 6–7%, outperforming many other economies in the region.
Here’s why Vietnam is a prime destination for Singapore businesses:
- Strong bilateral relations: Singapore is consistently one of Vietnam’s top foreign investors, with multiple industrial parks jointly developed through the Vietnam–Singapore Industrial Park (VSIP) initiative.
- Strategic location: Situated near major shipping routes, Vietnam is a key hub for Southeast Asia’s manufacturing and export network.
- Young and skilled workforce: More than 60% of Vietnam’s population is under 35, offering a vibrant labour pool for manufacturing, services, and digital industries.
- Growing middle class: Rising disposable income is creating demand for quality goods and services—from education and healthcare to retail and dining.
- Pro-business reforms: Vietnam continues to liberalise its economy and improve regulatory transparency, making it increasingly business-friendly.
These factors make Vietnam an ideal market for Singapore SMEs looking to establish a long-term regional presence.
3. How the MRA Grant Helps You Expand into Vietnam
The MRA Grant provides financial and strategic support throughout the key stages of expansion. Here’s how it can be used effectively for Vietnam:
(a) Market Research and Feasibility Studies
Before entering Vietnam, businesses need a clear understanding of market demand, competition, and local regulations. The MRA Grant can fund professional market research or feasibility studies, giving insights into:
- Consumer behaviour and preferences
- Industry trends and competitor analysis
- Entry barriers and potential risks
- Ideal city or region for business setup (e.g., Ho Chi Minh City, Hanoi, or Da Nang)
This groundwork ensures that your expansion plan is built on solid data rather than assumptions.
(b) Developing an Entry Strategy
Once the research phase is complete, the next step is crafting an entry plan. This includes:
- Choosing between a representative office, branch office, or joint venture
- Setting up partnerships with local distributors or agents
- Understanding licensing, legal, and tax requirements
Through the MRA Grant, you can hire market entry consultants to develop your Vietnam strategy and guide you through the compliance process, ensuring you make informed decisions.
(c) Building Brand Awareness
Branding and marketing play a vital role in attracting customers in a new market. Under the MRA Grant’s Overseas Market Promotion category, you can get support for:
- Participating in Vietnam trade exhibitions and industry fairs
- Running online and offline marketing campaigns in Vietnamese markets
- Creating localized marketing materials, including brochures and websites
- Engaging in digital marketing such as Google Ads or social media targeting Vietnamese consumers
This helps build your brand reputation locally while saving costs on promotion.
(d) Partner and Client Development
To succeed in Vietnam, finding the right partners is crucial—whether they’re distributors, franchisees, or suppliers. The MRA Grant supports Overseas Business Development activities such as:
- Business matching and networking events
- Trips to meet potential clients, distributors, or partners
- Negotiation support and contract advisory services
These activities allow you to connect with trusted local partners who understand the Vietnamese market landscape.
(e) Business Incorporation and Legal Support
Setting up an entity in Vietnam requires navigating legal and regulatory processes, which can be complex. The MRA Grant helps offset costs for:
- Legal and tax advisory services
- Company registration and licensing fees
- Drafting business contracts and agreements
- Intellectual property (IP) protection registration
This ensures a smooth setup while ensuring compliance with Vietnamese laws.
4. Key Sectors Where Singapore Companies Can Thrive in Vietnam
(a) Manufacturing and Industrial Services
Vietnam has become a manufacturing powerhouse due to its low labour costs, improving infrastructure, and strategic trade links. Singapore companies offering industrial automation, supply chain management, or engineering services can support local factories and industrial parks.
(b) Education and Training
With a growing middle class and emphasis on quality education, Vietnam offers strong potential for Singapore-based education providers. From international schools to vocational training centres, there is strong demand for skill development and English-language education.
(c) Fintech and Digital Services
Vietnam’s digital economy is booming. The rise of e-commerce, mobile payments, and online banking opens doors for Singapore fintech firms to provide secure and scalable solutions, leveraging Singapore’s credibility in digital finance.
(d) F&B and Retail
Vietnamese consumers are increasingly embracing modern retail and dining experiences. Singapore F&B brands and lifestyle retailers can thrive by localising menus, pricing, and marketing for the Vietnamese audience.
(e) Sustainability and Green Technology
With growing awareness of climate issues, Vietnam is investing in renewable energy, waste management, and sustainable urban development. Singapore firms in green tech and environmental consulting can play a key role in this transformation.
5. How to Apply for the MRA Grant for Vietnam
Here’s a step-by-step guide on how to leverage the MRA Grant for your Vietnam expansion:
Step 1: Check Eligibility
To qualify for the MRA Grant, your company must:
- Be registered and operating in Singapore
- Have at least 30% local shareholding
- Have an annual sales turnover of less than S$100 million or employ fewer than 200 workers
- Be expanding into a new overseas market where it has not generated more than S$100,000 in overseas sales in the past three years
Step 2: Identify Your Vietnam Expansion Activities
List the activities you want to apply for, such as market research, marketing campaigns, or business development trips. The total supportable cost per market is capped at S$100,000.
Step 3: Engage a Qualified Consultant
Choose a pre-approved consultant experienced in overseas expansion. Firms like GrantConsultant.sg specialise in preparing documentation, ensuring compliance, and helping SMEs maximise their grant funding potential.
Step 4: Submit Your Application via Business Grants Portal (BGP)
Applications are made through the Business Grants Portal (BGP) using your company’s CorpPass. You’ll need to provide:
- Project proposal
- Expected outcomes (e.g., new customers, revenue targets)
- Quotation or cost breakdown
- Consultant or vendor details
Step 5: Receive Approval and Begin Implementation
Once approved, you can begin your expansion activities. Keep proper records and receipts, as they’ll be required for post-project reporting.
Step 6: Claim Your Grant
After completing your project, submit your claim through BGP with all supporting documents. ESG will verify your deliverables before reimbursing up to 50% of the approved costs.
6. Tips for Maximising Your MRA Grant
- Plan Ahead – The MRA Grant approval process can take time. Submit your application before starting any project-related activity.
- Work with Experienced Partners – Choose consultants familiar with Vietnam’s business environment.
- Focus on Measurable Outcomes – Define tangible goals such as new client acquisitions or partnerships.
- Localise Your Approach – Tailor marketing messages and business models to suit Vietnamese culture and consumer preferences.
- Leverage Singapore’s Reputation – Position your company as a trusted Singapore brand, known for quality and reliability.
These steps will help you maximise both the financial and strategic impact of your MRA-funded project.
7. Common Mistakes to Avoid
- Starting before approval: Expenses incurred before MRA approval are not claimable.
- Insufficient documentation: Always retain invoices, contracts, and payment records.
- Poor project definition: Vague or unstructured plans reduce your chances of approval.
- Overlooking localisation: Using a one-size-fits-all approach may fail to engage Vietnamese consumers.
- Underestimating timeframes: Overseas expansion takes months of preparation, not weeks.
Avoiding these pitfalls will streamline your process and improve your chances of success.
8. Why Use a Professional MRA Consultant
While the MRA Grant is a valuable resource, navigating the application process can be complex. A professional consultant such as GrantConsultant.sg helps SMEs by:
- Crafting comprehensive project proposals aligned with ESG’s criteria
- Managing paperwork and submission via the Business Grants Portal
- Advising on eligible cost components
- Coordinating with overseas vendors or partners
- Assisting in post-project reporting and claim filing
By engaging an expert, you can save time, reduce errors, and ensure your business gets the maximum support for its Vietnam expansion.
Conclusion: Turning Opportunity into Action
Vietnam’s fast-growing economy, favourable business environment, and strategic location make it one of the most promising destinations for Singapore SMEs. Whether you’re in manufacturing, education, technology, or F&B, Vietnam offers vast potential for long-term growth.
The MRA Grant provides the financial backing and strategic framework needed to make this expansion a success. By leveraging it effectively—through market research, localisation, and trusted partnerships—your business can establish a sustainable footprint in Vietnam’s emerging market.
If your company is ready to take the next step but needs guidance in the grant process or market entry planning, partnering with an experienced consultant can make all the difference.
Find out more at https://grantconsultant.sg/market-readiness-assistance-mra-grant-singapore/