Promoting exports via overseas distribution channels

08:40 | 04/02/2017 Trade

(VEN) - Exporting Vietnamese goods via overseas distribution channels promises high effectiveness and lower intermediary costs. Therefore, in recent years, especially in 2016, the Ministry of Industry and Trade (MoIT) has developed many trade promotion programs through the distribution channels of foreign countries, creating opportunities for Vietnamese goods to enter these potential markets.  

promoting exports via overseas distribution channels

Diverse activities

In early June 2016, the MoIT, in association with the Casino Group (France), organized a Vietnamese Goods Week event at the Casino Gambetta Supermarket in Lyon, France. One week after that, a workshop was held at the headquarters of the LegaCoop Emilia Romagna Group in Bologna, Italy to introduce made-in-Vietnam products.

The two events took place in the framework of the Vietnamese Goods Week in Europe. Following these events, a number of trade promotion activities were organized by the MoIT in 2016 to boost exports via overseas distribution systems.

The MoIT has organized three Vietnamese Goods Week events in France. In 2016, the first event of this kind took place in Italy presenting a wide range of Vietnamese products. During the week-long event, many activities were held with the participation of reputable local distributors. Vietnamese Goods Week events in the two countries offered French and Italian businesses a chance to learn about Vietnamese exports, while at the same time providing Vietnamese businesses with a good opportunity to meet French and Italian importers to promote exports to the two markets and the EU in general.

Events in the framework of the Vietnamese Goods Week in Europe have had good effects on Vietnamese goods distribution in recent years. Before they were acquired by the Central Group (Thailand), the Casino Group’s Big C supermarket chains - where the events took place - distributed various kinds of Vietnamese goods such as fresh fruit and vegetables, frozen spring rolls, rice, frozen shrimp, canned fruit, beverages, textiles and garments, with annual sales amounting to tens of millions of US dollars. After acquiring the Big C supermarket chains, the leadership of the Casino Group strongly pledged to continue distributing Vietnamese goods through its supermarket chains in Europe and worldwide.

In an effort to bring Vietnamese goods into overseas retail channels, the Vietnamese Embassy in Thailand, in association with the TCC Group, for the first time organized a Vietnamese goods and food fair in the Central World shopping complex, Bangkok in early July 2016. With the participation of more than 100 Vietnamese companies and 150 Thai businesses, the event was aimed at increasing the presence of Vietnamese goods in the Thai market.

Shortly after the fair, in late July, the first batch of 100 tonnes of Vietnamese dragon fruit was successfully exported to Thailand via the MM Mega Market supermarket chains, formerly known as Metro Cash & Carry. Apart from dragon fruit, MM Mega Market will distribute many other kinds of Vietnamese products such as avocado, orange, star-apple, sweet potato, pangasius, and flowers grown in Da Lat.

In early September 2016, the MoIT, in association with the AEON Group, organized an event in AEON Lake Town, Saitama Prefecture, Japan, aiming to promote the sale of Vietnamese goods via AEON retail supermarket chains. The event offered Vietnamese businesses a chance to introduce and sell their products in Japan. At this event, AEON pledged to distribute Vietnamese fresh bananas following a long time of negotiations.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa affirmed the high effectiveness of overseas trade promotion activities such as Vietnamese Goods Week. Taking Vietnamese goods into reputable supermarket chains is an effective way for domestic businesses to promote exports and learn from the quality management experiences of other countries.

Efforts to bring Vietnamese goods overseas

To make Vietnamese goods present in overseas supermarket chains, domestic businesses need to be aware of and seriously follow strict regulations in terms of food safety, environmental protection, and origin. Along with tightening control over the production process, they should improve technology to enhance the quality of products.

Businesses also need to pay special attention to building brands for export products, which would help build foreign consumer trust in Vietnamese goods.

Prime Ministerial Decision 1513/QD-TTg dated September 3, 2015 indicates that by 2020, Vietnamese goods will be present in major distribution networks worldwide. Le Viet Nga, Deputy Director of the MoIT’s Domestic Market Department, said that the ministry would continue assisting businesses’ efforts to sell Vietnamese goods overseas. Specifically, the ministry will provide businesses with information about overseas distribution and retail networks along with intensifying trade promotion activities. Connections between domestic businesses and purchasers from overseas distribution chains will be set up. Marketing activities will be intensified. Foreign invested businesses will be encouraged to export their products via overseas distribution networks. Bonded warehouses will be established to ensure timely supplies of goods for overseas distributors and retailers.

Further, the MoIT will continue accelerating administrative reforms in fields such as tax, customs, and investment. Suitable policies will be put in place to encourage foreign distributors and retailers in Vietnam to bring Vietnamese goods into global distribution and retail networks.

Phuong Lan