08:14 | 29/03/2016 Trade
(VEN) - Commercial counselors have suggested domestic businesses need careful preparations in order to help Vietnamese goods more deeply enter foreign distribution systems.
G7 coffee is introduced in Singapore
According to the Ministry of Industry and Trade’s Europe Market Department Director Dang Hoang Hai, Vietnamese goods were often exported via intermediaries instead of direct export to distribution chains. For example, 90 percent of coffee, 80 percent of furniture and 70 percent of leather and footwear are exported via middlemen.
After signing export contracts, businesses do not know where their goods are distributed. In addition, many kinds of made-in-Vietnam goods are not labeled. Therefore, businesses aren’t able to conduct market research and develop products for specific markets.
Hai said that Vietnamese exports via an intermediate stage meant no development in brand values, while product prices were falling, causing a decline in competitiveness.
Promoting Vietnamese goods abroad
To help Vietnamese goods deeply enter foreign distribution systems, the Ministry of Industry and Trade has adopted the project on promoting Vietnamese businesses to directly participate in foreign distribution systems by 2020. The project was approved by Prime Minister Nguyen Tan Dung on September 3, 2015.
The project aims at increasing export turnover of Vietnamese goods via foreign distribution and retail chains that have opened branches in Vietnam such as Big C, Aeon, Lotte Mart and Metro, promoting direct export through large distribution channels such as Walmart and Carrefour and reducing dependence on intermediate stages.
Commercial counselors said that the project’s goals were practical. However to achieve higher efficiency, the project needs to be included in the national key program. In addition, domestic businesses need to carefully prepare from design to promotion and advertising.
Vietnamese Commercial Counselor in Switzerland Nguyen Manh Quyen said that each country required different standards. Therefore, to create favorable conditions for Vietnamese goods in entering foreign distribution systems, appropriate solutions were needed. In addition, authorities need to reduce the time on administrative and customs procedures in order to facilitate customs clearance.
Deputy Minister of Industry and Trade Ho Thi Kim Thoa said that Vietnamese trade offices abroad played a key role in helping Vietnamese goods enter foreign distribution systems