Vietnamese products face stiff competition

According to recent statistics released by the Central Steering Committee for the campaign “Vietnamese people give priority to using Vietnamese goods”, local products comprise roughly 80% to 90% of products stocking the local supermarket shelves.

Additionally, 71% of Vietnamese consumers say they have faith in the high quality of Vietnamese supermarket products.

However, the Ministry of Industry and Trade (MoIT) reports that sustainability for Vietnamese products is not assured and the import of Thai products is on the rise, ranking third in the local market just after Vietnamese and Chinese products.

The Committee reports that Vietnamese products are also showing weakness in the electronics retail market as imports from Thailand accounted for 70% of market share while fruits from Thailand comprised 40% of market share despite the fact that the Thai products are more expensive, priced 30%-50% higher than comparable products from Vietnam or China.

Vu Thi Kim Hanh – President of the Business Association of High-Quality Vietnamese Goods, said that to more effectively compete, local businesses should renovate technologies and devise improved strategies on marketing, distribution and advertising.

In particular, an improved strategy on the distribution of products is critically important, insuring that goods are distributed to remote areas throughout the country as well as the more populated urban areas, Hanh said.

Deputy Minister of Industry and Trade Do Thang Hai  stated that the Ministry has coordinated with relevant ministries and localities to implement improved forecasts of the market and prices of essential goods.

However, to help Vietnamese products secure a solid foothold in the market, it is necessary to raise public awareness and Vietnamese producers should improve competitive edge, and cooperate with distributors to insure goods are effectively distributed throughout the country, Hai said.