Vietnamese firms need to win over local customers

Thursday, Feb 21, 2019 08:30

Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.

The High Quality Vietnamese Product Business Association chose 542 enterprises to receive the prestigious “Vietnamese High-Quality Goods” certificate in 2019. This figure is nearly 100 fewer firms than in 2018 and fewer than in previous years, reflecting the fact that Vietnamese products face fierce competition from imported ones, in part due to the impacts of free trade agreements and the increasing diversification of modern foreign distribution channels into the domestic market.

Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc talks with Vietnam News Agency about potential policies to deal with this issue

In the context of economic integration and especially after implementing many free trade agreements, domestic enterprises and made-in-Vietnam goods are facing competitive pressure and are at risk of being crowded out of the local market. Do you have any comments about this problem?

It’s already difficult to avoid this problem, and it will be more severe now that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has come into effect in Viet Nam.

A survey was conducted to review the five years of the campaign “Vietnamese people prioritise Vietnamese products”. The results showed that only 63 per cent of consumers said they would prioritise to buying Vietnamese goods when they were shopping.

The results of another investigation by the Vietnamese High-quality Product Club, which was conducted recently, showed the rate of consumers that favour Vietnamese goods was 51 per cent. About 60 per cent of Vietnamese consumers said they regularly bought Vietnamese products.

In this situation, Vietnamese businesses are facing a vital question: how do they maintain their hold on the domestic market while reaching out to the world market. It’s time for Vietnamese businesses to move from a passive state to a more active state.

Vietnamese businesses need to win over Vietnamese consumers with their high-quality products and services – the only way to develop their brands sustainably.

There have been a number of reputable businesses with strong brands pioneering the movement “Vietnamese products conquer Vietnamese people”. However, it has not yet created a spillover effect. Is that correct?

It is necessary to mention some pioneering examples in this effort. They include Viettel’s telecommunication technology, Vinhome’s modern urban areas, food and drinks brands Vinamilk, TH Truemilk, Vinacafe Bien Hoa, Trung Nguyen coffee, Acecook and some other seafood and rice brands.

But it is true that there are few such giant brands. In particular, it is not available in some areas such as manufacturing or technology. Viet Nam does not really have big brands that can compete internationally. The electronics industry and the automobile industry have not yet escaped outsourcing.

The launch of the first Vietnamese automobile brand, VinFast, has brought hope for a new future for the domestic business community.

The movement “Vietnamese products conquer Vietnamese people” was launched in 2018. How was it organised?

The movement was conducted by associations of businesses, leading businesses, ministries and sectors under the Prime Minister’s Instruction 07/CT-TTg, issued in March 2018.

It aims at enhancing the competitive capacity of Vietnamese goods and brands, especially “Made-in-Vietnam” products produced by Vietnamese people to serve locals and reach out to the world market.

The movement is comprehensive. It aims to raise capacity, build consumption culture, renew technology, upgrade administration and strengthen marketing and distribution – all of which all is seen as vital to the sustainable development of businesses in the context of the world integration.

Building top brands is the task of entrepreneurs, but they still need support from Government agencies and the political system.

We hope the Government will continue its reform efforts to pave the way for the development of businesses.

Public-private partnerships are also expected to be both a solution for investment in infrastructure development and to build leading brands in the country’s important industries.

The development of supply chains for the automobile industry, like for VinFast, is worthy of being public-private partnership projects and receiving support from the State, as expected by VCCI and businesses.

Moving forward, “Vietnamese products conquer Vietnamese people” will be promoted into a patriotic emulation movement in the business community.

The "Excellent Vietnam" logo of this movement will be awarded annually to leading businesses and brands. — VNS

Comments (0)