In order to affirm their products’ position in the home market in light of a rise in the volume of imported ones, it is high time for Vietnamese enterprises to urgently improve their competitiveness through brand building in a bid to promote domestic consumption of their products.

Enterprises must actively develop their brands to increase competitiveness in the market. Local consumers are seen selecting goods at the Co.opmart Da Nang. Photo: VAN HOANG

Domestic products on way to gain market shares 

According to the Da Nang Bureau of Statistics, between January and May, the retail sales of goods were estimated at VND26,990 billion, up 16.4% from the same period last year. The city’s consumer price index (CPI) saw the average growth of 2.09% over the year-ago period. In particular, the food and catering services went up by 2.46%, whilst other goods and services climbed by 2.35%.

The aforementioned positive result clearly demonstrates the adequate supply of domestic goods in the coronavirus resurgence that is hindering import activities, and affirmed Vietnamese goods’ stature in the home market as they are increasingly favoured by local consumers.

In fact, the coronavirus-sparked breakdown of the global product supply chain has adversely affected the circulation of goods imported from South Korea, Japan, China and some European countries. On the contrary, this fact, in turn, has opened a chance for domestically- produced goods to rise to fame on the way of asserting their stronger-than-ever foothold in their home market.

Such commonly-consumed items as fruits and vegetables, fresh seafood, processed foods and home appliances have recorded their relatively stable consumption, occupying an increasingly high percentage on shelves in supermarkets and convenience stores, and being increasingly favoured by Da Nang’s consumers.

According to revelations by Mr. Ho Quang Dung, the Deputy Director of Lotte Mart supermarket, the percentage of Vietnamese products in Lotte's distribution systems is high, accounting for 90-95% of the total merchandise volume.

Similarly, Vietnamese goods on shelves at Co.opmart account for more than 90% of the total, whilst those at Vinmart make up for more than 80%.

In convenience stores, Vietnamese goods almost dominate the market share. Likewise, downtown market, during the pandemic-raging months, saw the abundance in flows of domestically-produced goods.

Encouragingly, neither pressing goods shortages nor ‘price fevers’ were reported at this shoppers-packed traditional market.

Ms. Nguyen Thi Thu Ha, CEO of Kim Sora Co., Ltd in Hoa Khanh Industrial Park, Lien Chieu District, said that, in the currently complicated development of COVID-19, building national brands, and corporate ones in particular, is very crucial.

It is a need for domestic producers in constantly improving their product quality, renewing their designs, and registering trademarks for their reasonably priced products.

In particular, it is a good idea to develop the most appropriate approach plan to introduce Vietnamese brands to consumers near and far. For example, measures must be taken to make the lean renovation and automation of production lines to reduce products’ costs, take quality as the top criterion, and draw up communication strategies to reach more prospective customers.

Currently, Vietnamese goods are dominating the market share in the system of distribution channels in Da Nang. A bustling shopping ambiance is recorded at the Co.opmart Son Tra. Photo: QUYNH TRANG

Raising public awareness of consuming Vietnamese products

According to Mr. Phan Thong, Director of Co.opmart Da Nang, to have a firm foothold in the domestic market, Vietnamese goods must win the trust of customers with their true value.

Enterprises must ensure the production of good-quality products, raw materials of clear origin and safe production processes and technologies for the sake of human health, stable prices and good customer care policies. Besides, communications and promotion of products should be given a special heed.

Mr. Tran Viet Dung, Vice Chairman of the Da Nang Committee of the Viet Nam Fatherland Front, said that, in an active response to the national ‘Vietnamese People Give Priority to Using Vietnamese Goods’ campaign, importance will be attached to calling for enterprises to produce goods showing off good quality, beautiful designs and reasonable prices to meet consumer demands.

“The municipal administration will continuously release more preferential mechanisms and policies to support businesses in trade promotion and brand development activities, thus faciltaing them to develop highly competitive signature products for consumption in both domestic and international markets”, Dung added.

Reporting by QUYNH TRANG – Translating by A.T