Improving competitiveness of Vietnamese goods

09:03 | 23/06/2016 Trade

(VEN) - Domestic manufacturers have faced many difficulties due to stronger competition after seeing an influx of foreign retailers. Promoting investment in technology, producing high-quality goods and improving competitiveness are seen as appropriate solutions to help Vietnamese businesses secure their position in the context of international integration.

Improving competitiveness of Vietnamese goods

Domestic manufacturers have faced many difficulties after seeing an influx by foreign retailers

Efforts

Many Vietnamese key goods have been available in leading markets in the world such as Japan, the EU and the US, meaning that Vietnamese goods are completely able to enter supermarkets.

In the context of international economic integration, Vietnamese businesses have actively developed action plans and invested in machinery and equipment in order to improve capacity, reduce production costs and enhance the competitiveness of Vietnamese goods.

The Saigon Paper Corporation has focused on strengthening internal capability and increasing market share in order to improve the competitiveness. The corporation has promoted investment in human resources, standardized systems and enhanced operational efficiency. The number of staff has fallen by 30 percent, while revenues and profits have strongly increased. After putting the US$120 million plant into operation in 2015, industrial paper supply for the market has increased by 224,640 tonnes a year. In addition to increasing output, the corporation has strongly developed domestic distribution chain and promoted exports to regional countries. As a result, the corporation has led the country in terms of consumer paper with more than 43,680 tonnes a year and ranked second in terms of industrial paper, securing top market share with around 20 percent.

According to the Vietnam Plastics Association, the plastics sector has recorded growth of 15-17 percent a year in the last three years. Many plastics businesses have strengthened investment in technology. For example, the Rang Dong Plastic Joint Stock Company signed a comprehensive trade agreement with Japan’s Sojitz Planet to provide consultancy and received technology, contributing to increasing the competitiveness and expanding market share.

Demand on dairy products in the market is increasing. According to forecasts, there will be fierce competition between domestic and foreign businesses in soya milk. To stand firm in the context of international economic integration, the Vietnam Soya Products Company invested VND900 billion in the construction of the dairy plant in Binh Duong Province. According to estimates, the plant would provide more 90 million liters of soya milk a year for the market, contributing to increasing the company’s total capacity to 390 million liters a year.

Promoting links

Small scale and limited capital are seen as the most difficult barriers for Vietnamese businesses. Therefore, promoting links between businesses is a necessity.

Deputy Minister of Industry and Trade Do Thang Hai said that competition in the context of international economic integration is an indispensable trend. If businesses do better, their goods can compete in any country. Businesses need to promote links to improve the competitiveness and quality in order to help Vietnamese goods enter supermarkets and foreign distribution chains.

Association of High-Quality Vietnamese Goods Producers Chairwoman Vu Kim Hanh said that although many Vietnamese supermarket chains have seen increased amounts of foreign goods available, foreign retailers need goods to sell. Therefore, product quality and business strategies are seen as decisive factors. Vietnamese businesses need to promote links in order to help Vietnamese goods enter supermarkets and distribution chains.

Retailers will sell all products with the final goal of serving domestic consumers. Economist Ngo Tri Long said that to face competitive pressure, Vietnamese businesses need to promote links to improve the competitiveness in terms of prices and product quality. Dominating the rural market, making most of opportunities and developing the domestic market to expand distribution systems and market share are needed. 

 

Phuong Lan

Theo ven.vn