This is not the first time Vietnamese businesses look for export channels through trade fairs. Over the recent years, the Vietnamese Ministry of Industry and Trade has worked with European retail networks including Casino (France), Metro Cash & Carry  and Sehrgros (Germany), Makro (the Czech Republic), Coop and Conad (Italy); and Asian department store chains Aeon and Lotte to organize Vietnamese goods weeks to promote Vietnamese commodities and connect them with international retailers. Statistics from the Ministry of Industry and Trade show that Vietnamese export through Aeon has risen from roughly 90 million dollars in 2013 to to over 115 million dollars in 2014, export through Korean retailer Lotte reached 19,6 million dollars in 2014 and Vietnamese goods sold through French Casino store chains reached the value of 30 million dollars in 2015.

  

Consumers buy local goods at Big C Supermarket

Aeon Vietnam is working with over 1600 Vietnamese suppliers so 80% of the goods sold  in Aeon shopping malls in Vietnam are Vietnamese, according to Nishitoghe Yasuo, General Director of Aeon Vietnam. In 2016, Aeon imported about 200 million USD of made-in-Vietnam commodities. Central Group, another Asian large retailer from Thailand, by acquiring BigC, has exported Vietnamese goods to Europe and earned roughly 25 million dollars in revenue. 

Difficulties remain

In spite of the increasing presence of Vietnamese goods in foreign market, the aim of exporting local products using  world major distribution systems requires local businesses to improve their whole system from production, distribution and sale. 

As a direct distributor of Vietnamese commodities to the Korean market through  Lotte Mart retailer, Hong Won Sik from the Korean distributor regards  price and quality as two important factors that influence consumer purchasing decisions. So as to make the Vietnamese local products available in the Korean market through Lotte Mart, Vietnamese suppliers need to focus on the quality and strive to win trust from Korean consumers. On the other hand, businesses also have to conduct surveys on potential markets and take into consideration whether or not they should expand their brands on new markets.

Other important factor is the consistency of product quality, which comes ahead of price. In fact, Vietnamese businesses have been aware of the importance of building up strong brands for a long time. However, the qualities of local products and the frequency of promoting Vietnamese brands remain the shortcomings of enterprises. PR Manager of Big C, Ho Quoc Nguyen shared  the same view when stating that in order to expand the Vietnamese products within the French market, suppliers need to focus on the quality to create  the first impression. With regard to food products, the food safety must be seen as the utmost crucial factor, following by packaging, labels, and after-sale services. 

Vietnamese exporters’ feedback analysis shows that the majority of Vietnamese exporters through foreign retailers are small and medium businesses with limited capital while foreign  payment has been delayed 30-45 days after shipment, making it difficult for them to recycle the money.  Therefore, it is important that the MOIT and related agencies provide financial supports for local enterprises in the process of taking local products to foreign markets through foreign central buying agencies. 

“Taking  Vietnamese goods to foreign markets through foreign department stores not only increases the export turnover in the amount of hundreds of millions USD, but also helps promote and introduce the local products to new consumers, especially when taking into account the recent interest of overseas distributors to Vietnam’s specialties”, said  Dang Hoang Hai, Head of the European Market Department of Vietnamese MOIT.