As the economic downturn remains unpredictable and purchasing power weak, Vietnamese enterprises have been trying every possible way to seek new partners and potential export markets by making specific products for each market.

Nguyen Hoang Dat, director of Vinahe in Binh Phuoc, which produces, processes and exports cashew nuts, has finished a 4-day fact-finding and trade promotion trip in Mondulkiri in 

Dat said this is a potential consumer for cashew nut products. There is not much processed farm produce in Cambodia and local needs are mostly met by imports. 

The Cambodian partner, after trying Vinahe’s produce, decided to import and distribute the produce in the locality, through supermarkets, restaurants and hotels.

Transport is expected to be very favorable with the Hoang Dieu international border gate in Binh Phuoc in Vietnam and the Lapakhe border gate in Mondulkiri in Cambodia. Just within one day, products from Binh Phuoc can reach the capital city of Phnom Penh.

Dat revealed that businesspeople from 20 other enterprises in Dak Nong, Dak Lak and Binh Phuoc took the trip with him to Cambodia. 

Since sales in traditional export markets have become stagnant, businesspeople have had to travel to new places to seek new markets to boost sales.

“I am planning to go to Laos this June,” Dat said.

Nguyen Ngoc Luan, CEO of Meet More Coffee, said he has been taking a lot of flights with the distance of thousands of kilometers to seek partners and new markets.

Luan said businesses now need to diversify their lists of export markets. The company not only sells produce in the domestic market, but now also sells to European countries and South Korea, the US, Australia and India. His company is also eyeing the Chinese, Singaporean and Filipino markets.

Good news has come to the textile and garment industry. Pham Van Viet, chair of Viet Thang Jeans, said he sees good signs from the Australian and Canadian markets. The number of orders to Australia has increased by 20 percent. As the US and European markets have not recovered yet, Viet has been seeking alternative markets.

In consumer goods manufacturing, Masan Consumer has distributed the Chinsu spice collection designed specifically for the Japanese market. The products are available at supermarkets in Tokyo, Kanagawa and Saitama. 

Pham Hong Son, deputy CEO of Masan Consumer, said his company is boosting exports to markets in the region. Once it successfully enters choosy markets such as Japan, it will be able to access other markets as well.

In 2023-2027, the company targets revenue of VND80-100 trillion, of which 85 percent would be from the domestic market and 15 percent from foreign markets (the figure now is 3-4 percent).

According to The Gioi Di Dong (Mobile World), a mobile phone distribution chain, each Erablue store (a joint venture of the company in Indonesia) brings revenue of VND5 billion a month, which is equal to revenue of the longstanding Dien May Xanh store in Vietnam. 

As for prospects of Erablue, its representative said business performance there is very good. Erablue plans to build 500 stores in the next five years (there are five now).

HCM City supports export companies

Seeking new export markets and international distribution channels are important for enterprises trying to overcome difficulties. 

However, Ly Kim Chi, chair of the HCM City Food and Foodstuff Association, said that economic conditions remain unpredictable and demand remains weak. 

Some new markets have great development potential, but there exist obstacles in payment methods, which hinders trade.

Viet of Viet Thang Jeans has proposed that the Ministry of Industry and Trade (MOIT) cooperate with the Ministry of Foreign Affairs and local industry and trade departments to accelerate trade promotion to help businesses access new markets.

The HCM City Industry and Trade Department plans to join forces with associations to organize the Vietnam Forum and Export Product Trade Fair in HCM City on May 25-28. The event aims to find solutions to support export activities of businesses in the city.

It is expected that over 250 stalls from key export items will be displayed at the trade fair, including farm produce, textiles and garments, footwear and handbags, wooden furniture, fine arts, food and beverage, seafood, electronics and others. The state budget will give a 50 percent financial support to the companies to attend the trade fair.

At the event, enterprises will be provided information about the demands from the key markets such as the US, Europe, Japan and South Korea. The trade fair is expected to attract 8,000 visitors.

Viet Nam Net