Many opportunities for exporting goods through ‘channels’10/07/2023
Presently, Vietnam has over 5 million overseas compatriots living and working in 130 countries and regions. Through overseas compatriots, many domestic enterprises have become convenient, fast, and effective in transporting goods to the world, especially Vietnamese agricultural products.
A bridge connecting overseas compatriots and enterprises
Vietnam’s markets around the world are expanding. In addition to efforts to standardize product quality and the ability of Vietnamese enterprises to explore the market, there is also a considerable part of the dissemination and connection of Vietnamese communities in the host country. This is also seen as an important cohesive force for Vietnamese goods to increasingly penetrate major markets around the world.
Share about using specialty fish sauce, spirit fish sauce, choked fish sauce, tomato sauce shrimp, papaya sour shrimp, filter cake… Coming to the US market, Nguyen Le Quoc Tuan, General Manager of Song Huong Foods, stated that due to overseas channels, the company’s production is very advantageous. Specifically, companies can assist in applying for a certificate from the US Food and Drug Administration (FDA) to export traditional cuisine from Vietnam to the United States.
In addition, one of the reasons that helped Song Huong Foods export local specialties to the strong sales in the US market is the Vietnamese food review clips watched by overseas Vietnamese people The company itself actively spreads and promotes products to overseas Vietnamese communities through social networks. It is expected that by 2023, the company’s exports of special products to the US market will reach $1.5 million to $2 million.
Mr. Nguyen Ngoc Luan, director of Global Trade Links Co., Ltd., said that over the years, the company has brought dozens of fruit Bean Belt made of taro, coconut, mung bean, etc. to Australia, the United States and South Korea.
He added that the initial export was not easy because there were not enough financial resources to accompany foreign companies in promoting their products. Initially, the company chose local distribution partners. As large distributors, they are not interested in Vietnamese brands, so despite high marketing costs, the company still fails. Then, the company turned to collaborating with Vietnamese expatriate enterprises in the host country. So far, 80% of the company’s overseas partners are enterprises of overseas compatriots, and the cooperation in goods distribution is very smooth. In particular, Europe has a large dealer who not only imports coffee, but also imports a large number of Grapefruit, coconut, etc. from Vietnam.
Promote e-commerce channel and connect association
Although there have been some initial successes, many experts and businesses believe that in order for Vietnamese goods to spread and better access international markets, a long-term strategy is required. Sharing at the conference on the role of the overseas Vietnamese community with the “Vietnamese people give priority to using Vietnamese goods” campaign in Ho Chi Minh City in 2023, which took place over the weekend, Mr. Pham Viet Hung, Director of the Department of Economic Relations Economics, Science and Technology – State Committee on Overseas Vietnamese, Ministry of Foreign Affairs said that most of Vietnamese goods are currently exported by foreign firms, but lack of import channels from foreign enterprises. Vietnam abroad. Accordingly, in the coming time, it is necessary to establish a network of Vietnamese businessmen abroad to promote distribution channels in foreign markets; promote the establishment of overseas Vietnamese business associations as focal points.
Mr. Nguyen Phu Hoa, Vietnam Trade Counselor in Australia, said that the Vietnamese trade in Australia always works closely with businesses to promote Vietnamese goods, helping to sell Vietnamese agricultural products at higher prices. Vietnam’s ST25 rice has covered Australia, and Vietnamese durian has successfully penetrated this market. In the near future, the Trade Office will coordinate to organize events to promote the consumption of Vietnamese litchi, longan and coconut, opening the prospect of entering this market.
In the Korean market, Mr. Tran Hai Linh, Chairman of the Vietnam-Korea Business and Investment Association (VKBIA) acknowledged: “Enterprises want to sell goods to difficult markets such as Korea, Japan, and Europe. Europe, America… must first meet their standards. From this experience, VKBIA wishes to establish a center to promote Vietnamese exports in Korea to promote cooperation with major Korean distribution groups and Vietnamese enterprises here to introduce many strong products of Vietnam to the Korean market”.
In addition, according to Dr. Phan Thi Tra My, President of the Provisional Vietnamese Business Association in China, Vietnam exports tropical agricultural products, seafood, textiles, mobile phones, computers, electronic products, etc. to China. Simultaneously importing raw materials from China for the production of temperate agricultural products. However, the disadvantage of Vietnamese products is their low value, mainly due to the lack of a complete supply chain for agricultural products, raw material exports, added value, and product lines.
Therefore, before planning to go abroad, enterprises need to correctly position their brand identity and improve their brand identity design. Vietnamese companies must understand their current sales channels in China to have access. For example, traditional channels still rely on agents and distributors; OEM processing of the brand. On the other hand, Vietnamese enterprises should participate in cross-border e-commerce, emphasized Dr. Phan Thi Tra My.