Connecting the consumption of OCOP products.

Việt Nam•22/12/2023

(QNO) - Addressing issues related to capital debt, distribution costs, and product transportation were among the topics discussed at the conference "Connecting trade between suppliers, export businesses, and trade promotion organizations in 2023".

The conference took place this morning, December 22nd, in Tam Ky City, organized by the Department of Agriculture and Rural Development, with the participation of leaders from the Department of Agriculture and Rural Development, the Department of Industry and Trade, representatives from local authorities, and nearly 40 OCOP product owners and distribution businesses.

A view of the conference "Connecting Suppliers with Export Businesses and Trade Promotion Organizations in 2023". Photo: VINH - SU

Large quantity, difficult to sell.

According to Mr. Ngo Tan, Deputy Director of the Department of Agriculture and Rural Development, after nearly six years of implementation, the OCOP program in Quang Nam has achieved positive results. As of December 2023, the province had 395 products from 314 entities recognized as meeting OCOP standards.

"Participants in the program are increasingly investing in advanced machinery, equipment, and production lines. In addition, product quality is gradually improving," Mr. Tan said.

To ensure that the OCOP program has more opportunities to connect with export businesses and trade promotion organizations inside and outside the province in the coming years, Mr. Ngo Tan suggested that OCOP entities, suppliers, export businesses, and trade promotion organizations need to sit down together to share difficulties and obstacles and propose solutions to find a longer-term direction for Quang Nam's OCOP products.

Speaking at the conference, Ms. Pham Thi Ngoc Yen, Director of Tam Khoa General Cooperative, stated that it takes a long time and significant capital to launch a standard OCOP product with many strict procedures regarding raw materials, packaging, labeling, and brand communication. Currently, the dried seaweed from this facility is being sold in supermarkets in the province and major cities nationwide, but the consumption volume is still quite low.

Ms. Yen believes that OCOP products are still facing many difficulties in the market. Photo: VINH - SU — Ms. Yen believes that OCOP products are facing many difficulties in the market. Photo: VINH - SU

"With a monthly production capacity of nearly 4 tons of products, we currently only sell over 1.2 tons on the market, accounting for 30-40%. The market share is mainly concentrated among customers in mini-supermarkets and small residential areas. Furthermore, distributors often delay payment, while the cooperative pays the farmers immediately for raw materials. This leads to capital tie-up for the business," Ms. Yen shared.

Expanding the trade network

Ms. Le Thi Ngoc Tam, Director of Ngoc Lan Cooperative in Quang Nam (Tam Thanh commune, Tam Ky city), said that since 2019, Ngoc Lan fish sauce products have met the standards for sale at Co.opMart Tam Ky supermarket after a period of perfecting the process and standards. There, the product is prominently displayed in many locations to attract customers and generates consistently high revenue.

[ VIDEO ] - Proposals made by OCOP entities at the conference:

"However, Co.opMart is a large supermarket chain nationwide, but Ngoc Lan fish sauce is only available at the Tam Ky branch. Through this conference, we hope that distributors will pay more attention to OCOP products; and at the same time, expand and introduce the product to the entire existing system to increase commercial potential in many other provinces and cities," Ms. Tam conveyed.

Ms. Nguyen Thi Thu Suong, Deputy Director of Co.opMart Tam Ky Supermarket, said that in recent years, the unit has coordinated with the province to set up a self-service booth specifically for OCOP products in a very attractive location. The products sold in this area have undergone a rigorous inspection and control process and meet the unit's standards. Quang Nam's OCOP products are quite abundant and diverse, providing more choices for Co.opMart Tam Ky customers.

Representatives from Co.opMart Tam Ky speak at the conference. Photo: VINH - SU

"However, to expand and bring Quang Nam's OCOP products to supermarkets in other provinces and cities, we need to remind businesses to pay more attention to product labeling and barcodes. Product labeling, as stipulated by the Government, must be ensured on all products, a common issue among many OCOP businesses. Furthermore, each product must have its own unique barcode, not 3-4 products sharing one barcode as some OCOP businesses currently do," Ms. Suong said.

[VIDEO] - Representatives of distributors advise OCOP businesses on several issues to consider:

Sharing the same view as the representative of Co.opMart Tam Ky supermarket, Mr. Bui Viet Thuan - Director of Go Tam Ky Supermarket - believes that not only product labels and barcodes, but also many OCOP entities in Quang Nam pay little attention to the packaging, distribution, and marketing processes of their products. Regarding the issue of accounts payable to Go supermarket's partners, the company has a separate policy for OCOP entities and cooperatives, allowing payment within a maximum of 7 days.

Representatives from Go Tam Ky supermarket guide businesses through the process of bringing OCOP products into the system. Photo: VINH - SU

"Go Supermarket has a system across all 63 provinces and cities, and when an OCOP (One Commune One Product) entity gets its product into one branch, it qualifies for coverage throughout the entire system. However, entities must carefully consider transportation resources and competitive pricing compared to other major brands. Because, once the entire system is established, the playing field is very level, without discrimination based on product type or origin. Therefore, OCOP entities in Quang Nam should leverage their strengths and optimize production processes to prepare resources for the upcoming large-scale commercialization," Mr. Thuan said.