Two major difficulties of Vietnamese goods when conquering the market

ANTD.VN - According to the Domestic Market Department ( Ministry of Industry and Trade ), currently, Vietnamese goods are facing difficulties in both export and domestic markets.

Gốm sứ Bát Tràng- sản phẩm hàng Việt Nam tiêu biểu

Bat Trang ceramics - typical Vietnamese products

On the afternoon of December 11, the Domestic Market Department and Industry and Trade Magazine organized a forum on "Promoting production and consumption of Vietnamese goods".

Speaking at the forum, Ms. Le Thi Viet Nga - Deputy Director of the Domestic Market Department pointed out two major difficulties facing Vietnamese goods today, which are challenges in the export market and the ability to compete in the "home field".

In the export market, the decline in consumer demand in the world markets has caused many difficulties for businesses, while domestic industrial production sectors are mainly export-oriented because domestic production output far exceeds domestic market demand, especially for industries such as textiles, leather - footwear, electronics, etc.

According to Ms. Le Thi Viet Nga, only 10% of the output of the above items is supplied to the domestic market, while 90% of the output is for export. Meanwhile, China's reopening also creates a lot of competitive pressure on Vietnam's export goods of the same type.

In addition, the fact that Vietnam's import markets have recently required businesses to produce goods that meet increasingly high standards of quality, safety, traceability, sustainable production towards a circular economy , and social and environmental responsibility of import markets is a challenge. Therefore, it is forecasted that the export turnover of some Vietnamese industries with strengths such as textiles, footwear, etc. will decrease in 2023.

In the domestic market, Vietnamese goods are also facing fierce competition because many imported goods are shifting strongly to domestic consumption after new generation free trade agreements (CPTPP, EVFTA...) officially take effect.

Not to mention, the proportion of imported goods in the distribution system, especially the cross-border e-commerce channel, is likely to increase in the coming time. “Through the cross-border e-commerce program, the new distribution channel has outstanding advantages in terms of technology and logistics platforms, contributing to supporting Vietnamese goods exported directly to consumers abroad, on the other hand, it also sells online and delivers many foreign goods to Vietnamese consumers with very competitive prices, suitable for tastes and fashion trends, with increasingly shortened shipping times.

In addition, many foreign retail chains, both online and offline, have actively invested in expanding their physical store systems and warehouses in Vietnam to distribute imported goods, especially cosmetics, fashion products (textiles, footwear), functional foods and high-end foods, furniture and household appliances, and products for mothers and babies..." - Ms. Le Thi Viet Nga said.

Despite many difficulties, according to the leader of the Domestic Market Department, Vietnamese goods are increasingly gaining a firm foothold in the market. Many of Vietnam's strong industries have made their mark by continuously holding the top position in the world's export turnover, putting Vietnam in the group of 23 countries with the largest export turnover in the world.

In 2022, the Ministry of Industry and Trade announced 281 reputable export enterprises with the following products: Textiles, coffee, rubber, tea, seafood, rice, cashew nuts, pepper, vegetables, milk, handicrafts, wood products, mechanical products, construction materials...

These are enterprises that produce Vietnamese goods that meet the strict standards of demanding markets. The added value and domestic content of exported products have improved a lot.

In the domestic market, after more than 14 years of implementing the campaign "Vietnamese people prioritize using Vietnamese goods," Vietnamese goods with strengths (especially essential goods and consumer goods) have been and continue to widely cover distribution networks from traditional distribution channels to modern distribution systems.

According to local reports, in the supermarket systems of some domestic enterprises, domestically produced goods account for a large proportion of 80 - 90% such as Co.opmart (90%), Winmart (90%), BRG Retail (80-90%)...

Foreign-invested distribution systems such as Aeon, Central Retail, MMMegaMarket, LotteMart... also make many efforts to contribute to the community where they open their businesses by purchasing and supporting the promotion of local products and regional specialties (OCOP, typical rural industrial products, local staples) and maintaining a high proportion of Vietnamese goods in their distribution channels.

To boost the consumption of Vietnamese goods, the Ministry of Industry and Trade plans to deploy 4 groups of solutions including: Strengthening information and propaganda work on the Campaign; Reviewing, supplementing, promulgating laws, mechanisms, and policies to support domestic production and consumption, protecting consumers, not contrary to the regulations of the World Trade Organization (WTO);

Support businesses in trade promotion activities and domestic market expansion; At the same time, innovate management work and rectify market management work.

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