Vietnamese goods are present in demanding markets
Statistics from the Saigon Co.op which is running Co.op Mart show that in 2016, via NTUC Fairprice (Singapore), Saigon Co.op exported over 200 containers of frozen farm produce including vegetables and fruits. Not only Saigon Co.op, Vietnamese products are exported worldwide through the supermarket giants including Metro, LOTTE Mart and Big C.
Introduction of Vinamilk products in Russian Federation. Photo: Quynh An
Recently, Hoa Sen Group has made history in Vietnam’s export as products with Hoa Sen trademark are being sold in 40 countries and territories earning for the company hundreds of millions of dollars a year. Vietnam Dairy Products Joint Stock Company (Vinamilk), after succeeding in the domestic market, is now selling made- in-Vietnam dairy products to the world. The company’s products are present in more than 40 countries and regions, with sales worth US$ 250-270 million per year. In particular, by the end of 2016 Vinamilk introduced two made- in- Vietnam dairy product lines in the U.S market, precisely in Arizona and California.
Wood processing companies are also successful in foreign demanding markets. Duc Thanh Wood Processing Joint Stock Company has been exported to more than 45 countries. The firm now has a strong foothold in about 20 countries, including such countries with stringent quality standards as Japan, EU, Republic of Korea Republic.
According to sources from the Ministry of Planning and Investment, Vietnam has 1,188 investment projects in 70 countries and territories with total registered capital of nearly US$ 21.4 billion.
Put brand promotion as top priority
Although made in Vietnam products are being sold abroad, product diversification and quality assurance are the biggest challenges. Hong Won Sik, the General Director of Lotte Mart Vietnam stressed that for Vietnamese products to have a foothold on foreign market, the quality assurance is the primary factor, then come the price. At the same time, Vietnamese enterprises should be aware that Vietnamese export items must comply with Korea’s Law on Safety and Quality Control. “Particularly for agricultural products and foodstuffs, the Law on Food Safety and Hygiene stipulated that these imported products must be registered with the Korea Food and Drug Administration (KFDA)” Hong Won Sik gave an example. To sell Vietnamese products in the UK market, Saby Mishra, CEO of J.Water Thompson, suggested that Vietnamese goods must comply with at least three criteria: standards, health and environment.
To solve this problem, according to Ta Hoang Linh, Deputy Director of Trade Promotion Department, together with abiding by high requirements on quality, businesses need to study on the market, consumer taste to develop a brand that based on the strengths and distinctive features of products and services , suitable to each customer segment; at the same time they should select the right partner to operate in the target market. In addition, businesses need to step up their investment in value added process such as manufacturing, designing and reducing the export of raw materials. Enterprises need to strengthen the link among them to close the circle from production to distribution.
In order to support enterprises in building and promoting their trademarks internationally, the Ministry of Industry and Trade renewed trade promotion activities in the direction of focusing on supporting enterprises to exploit the benefits of free trade agreements; together with related ministries and agencies to help enterprises promote their brands in the traditional and potential export markets. But more importantly, each business needs raise its awareness on brandname and build a brandname strategy .