Made-in-Vietnam factor strikes a chord in domestic market
Made-in-Vietnam factor strikes a chord in domestic market
National campaign has succeeded in boosting awareness and acceptance of local products and brands, the VCCI says.
The dominance of Vietnamese goods in domestic market is evident, the Vietnam Chamber of Commerce and Industry (VCCI) stated at a recent conference reviewing 10 years of the "Vietnamese people prioritize Vietnamese goods" campaign it organized in Hanoi.
Locally made products account for 80-90 percent in modern distribution channels and more than 60 percent in traditional retail (traditional markets and groceries), according to the chamber.
VCCI vice chairman Hoang Quang Phong said that the campaign has significantly contributed to increasing customers' trust in domestic goods.
"Many local brands have won consumers' confidence and become a matter of national pride, like Vinamilk, TH true MILK, Traphaco, Vinatex and Trung Thanh," he said.
The campaign also affected key manufacturing industries with an increase in localization rate and hi-tech application. For instance, he noted, the localization rate has reached 50 percent in the textile and garment industry and 40-50 percent in the leather and footwear industry.
Nong Thi Ty, chairwoman of the garment company Ho Guom Group, said that her company's business strategy has shifted to catering to the local market in response to the campaign. From then on, her domestic revenues have increased.
Ty said her company’s products not only cater to the mid-end market segment, but also overseas markets with strict requirements.
Garment brands from Ho Guom Group are sold in the U.S through Amazon. Perilla, another Ho Guom Group brand, is exported to Japan.
Phi Ngoc Trung, general director of Trung Thanh Food, a Vietnamese spice company, said Vietnamese companies are taking steps to perform well in both domestic and foreign markets. "The quality, technology and image of products have improved a lot," he said.
However, the campaign has also experienced some hurdles.
Trung of Trung Thanh Foods shared his experience of spending 5 to 10 years on a complaint to protect his firm's brand. "The extensive procedures and policies make it more difficult for enterprises to tackle business fraud and copyright violation."
"Locally-made products account for 90 percent in some Vietnamese supermarkets. However, most of them are foreign-owned," he said.
Phong of VCCI noted that Vietnamese enterprises should take the initiative to promote international integration in context of the country signing, implementing and negotiating a total of 16 free trade agreements. "Modern management and manufacturing process should be adopted to boost quality of goods and services."
