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What is CLMV?

Before becoming CLMV

After the Cold War between the United States and The Soviet Union has closed down. the economic situation of The world has become more and more relaxed and open, reflecting that many countries have started to implement trade policies with the country. The neighbors, with the primary aim of changing conflicts. In the past to become an economically prosperous society, 4 countries in Southeast Asia including Cambodia, Lao PDR, Myanmar and Vietnam, which have gradually join as a member of ASEAN until all moved through political ideology and the economic system that truly different in ASEAN Later, the word “Indochina” that often refers to the past. The colonial country of France1 has gradually faded. disappeared and was replaced by the word “CLMV” which has been widely mentioned as a potential country group. high and received attention from foreign investors such as current continuation.

CLMV

The CLMV countries are Cambodia, Laos, Myanmar, and Vietnam. This country association within the Association of Southeast Asian Nations comprises its newest, lowest income, and formerly closed-economy members. One of the ways in which the association operates is through CLMV Economic Ministers’ Meetings. Wikipedia

What does CLMV stand for?

CLMV is Cambodia, Laos, the Union of Myanmar and Vietnam. (Cambodia-Laos-Myanmar-Vietnam)

Cambodia, Laos, the Union of Myanmar, and Vietnam, or CLMV, are our neighboring countries that have a continuous economic growth trend. CLMV is therefore very suitable for Thai entrepreneurs to invest or find business avenues because CLMV countries have potential in terms of power. With a large labor force, low wages, and abundant natural resources such as minerals, hydropower and land, but entering the CLMV market should not be rushed. Instead, it’s best to find an expert who can advise advise on strategic planning. whether in marketing public relations legal aspects while protecting and adding value to the entrepreneur’s business to enable the entrepreneur’s business to be able to reach the international level.

The CLMV market (Cambodia, Laos, Myanmar, Vietnam) has changed a lot from 10 years ago. Not only is the economy growing rapidly at more than 5-7% year-on-year, which is the highest rate of economic growth for many years in a row. The main factor contributing to the region’s rapid growth is Having abundant natural resources (Myanmar) has cheap labor and lower production costs than in more developed countries in the region such as Thailand or Malaysia. Consequently, investments from superpower nations continue to flow into the CLMV market. And this trend will continue for many years to come.

Besides turning the country into an important production base, CLMV has developed itself as an important trading hub. Trade patterns in the region are shifting from traditional trade to modern retail. There is a shopping center There is a convenience store TV shopping And most importantly, Online Shopping is another channel that has a very high growth rate.

Internet usage behavior continues to grow.

According to the Hootsuite We Are Social report 2017, the rates of internet access and mobile phone usage behavior among the CLMV population are as follows:

Cambodia: 15.96 million population, 27.6 million active mobile phone numbers (173% of the population, 7.16 million) with Internet access (+45% from last year, 4.9 million social media users). (+53%), with 4.7 million (+44%) using mobile phones with very few that are used through computers.

Laos: a total population of 6.98 million, 5.95 million active mobile phone numbers (85% of the population), 1.8 million people with Internet access (+88% from the previous year), 1.8 million social media users. (+81%), with 1.5 million (+81%) using mobile phones

Myanmar: 54.6 million population, 50.56 million active mobile phone numbers (93% of the population), 14 million internet access (+88% last year), 14 million social media users. (+84%), with 13 million (+106%) using mobile phones

Vietnam: 94.6 million population, 124.7 million active mobile phone numbers (131% of the population), about 50 million have Internet access (+6% only from last year), 46 social media users. Millions (+31%), with 41 million (+47%) using mobile phones.

The difference in internet usage is still noticeable.

It can be seen that in all three countries, despite the growth rate of internet usage and social media usage, the online shopping behavior of Cambodia, Laos and Myanmar population is still at an initial level. Most of the products available for sale are limited to mobile phones and accessories, fashion, beauty, and only selling through the web. Payment is not as comfortable as in Thailand. And sending goods across the country is still difficult.

The real dominance and advancement of this region’s online marketplace lies in Vietnam. Data from the same source reports that 98% of the adult population owns a mobile phone, with 72% having a smartphone and 44% having a laptop, which is the highest percentage of people owning an Internet-connected device. the highest in this region

In addition to having a lot of devices to connect The online shopping behavior of Vietnamese people is also very interesting. According to a recent report in January 2017, 35% of Vietnamese shared 33.26 million online transactions (2 times more than Thailand), totaling $1.8 billion (1.4 times less than Thailand), with average per turnover. head at 55 coins (4 times less than Thai)

The numbers give directions. Marketing online clearly. The big market that is ready is in Vietnam. but purchasing power or the purchase amount per time is still much less than that of Thailand Therefore, it is imperative that entrepreneurs who are interested in online marketing must consider choosing a product with an appropriate price range.

Opportunities are still open for quality products.

When surveying the main categories of products sold online, it was found that more than 80 percent of the products available were locally made and imported from China. which is a medium to low quality product While Thai products are accepted by consumers in the CLMV region, it is a good opportunity for Thai entrepreneurs to expand their markets into other countries. which expanding the market is easy because consumers are familiar with Thai language and culture and know Thai products through advertisements and television programs from Thailand

besides consumer products After consumption, there are several other rising star products with high growth potential in this region, namely building materials. Motorcycle parts and decorations, home decorations, household appliances Cheap electrical appliances, food supplements, cosmetics, consumer products in small bottles/bags, snacks, canned food

Online is the answer

Although the investment opportunity in CLMV is open to Thai entrepreneurs who have advantages in brand and product quality. But what must be very careful is The way to go to sell because many factors are very different from our home, for example rent in Yangon is still quite expensive. The way of trading with Vietnamese people who always have a strange way of thinking that we do not expect. and the matter of protection law Both in safety, including if there is a lawsuit, so doing everything yourself in the area we are not familiar with. Therefore, it is quite a matter of concern.

A possible approach is to find a long-term partner Trading through the online system Thai entrepreneurs are responsible for producing products and creating brands that are popular in the market. while the partner is responsible for the sales and distribution The purchase of goods can be done through online channels for the convenience and safety of both parties.