Vietnamese "dinosaur" products make their way to the world.

While domestic goods are threatened right in their own market by cheap imported goods, many Vietnamese businesses are still boldly venturing into the world with high-value, unique, and high-quality products that are impossible to imitate…

Vicostone has been selected as the supplier of high-end paving stones for the City Center entertainment complex casinos (Las Vegas), USA, since 2007 - Photo: Tripadvisor

With their market share in the international market, Vicostone, Phuc Sinh, and Intimex Group are like "giants" in the business world. Some brands have even written remarkable stories, rising from the brink of bankruptcy to trillions of dong in profit thanks to their expansion overseas.

Quietly entering the world's top 3.

In 2007, Vicostone, a Vietnamese company, was selected as the supplier of high-end paving stones for the City Center entertainment complex casinos in Las Vegas, USA.

This contract serves as a key for a Vietnamese business with only three years of export experience to open the door to one of the world's most demanding markets.

Following its success in the US, Vicostone continues to supply stone for a series of hotel and high-end building projects in Vancouver (Canada), Mexico City (Mexico), Australia, and other locations.

In 2020, Vicostone ranked among the top 3 premium quartz stone manufacturers in the world, with products available in over 50 countries and more than 10,000 dealers and partners globally.

Behind that success is Mr. Ho Xuan Nang, a businessman from Nam Dinh province, who brought his company, which was on the verge of bankruptcy, into the ranks of the top players in the foreign market.

From revenue of nearly 200 billion VND and net profit of only 5 billion VND in 2006, to the period from 2017 to 2022, Viscostone's revenue consistently reached 5,000 - 7,000 billion VND, net profit exceeded one trillion VND, and in 2021 even reached a peak profit of nearly 1,800 billion VND.

An international media outlet suggested that Vicostone's rapid rise has led Casearstone, a competitor in the same industry with a market capitalization of over $1 billion, to list Vicostone as a potential market share threat.

Vicostone shared: "We have built our own technological know-how, so we are confident that our products will have a certain position in the world." A business leader commented that Vicostone invests heavily in research and development (R&D), creating unique designs that are difficult to replicate. Their success is largely due to mastering core technology and R&D.

International visitors participate in an experience showcasing Vicostone stone products - Photo: VCS

Rejecting the old order

Phuc Sinh's professionalization has made a positive impact on the industry. For example, pepper is usually packaged in 50-100kg bags; no one packages it in 5-10kg bags, but Phuc Sinh does just that.

Besides taking advantage of free trade agreements, they also pay close attention to small details to find ways to develop and build a reputation for Vietnamese agricultural products in the world.

Leaders of the Vietnam Pepper and Spice Association (VPSA)

If Vicostone dominates the artificial quartz-based paving stone market with the US as its main market, then Vietnamese agricultural giants like Phuc Sinh Joint Stock Company are equally competitive, establishing their presence in Europe.

Entering the EU market also meant that Mr. Phan Minh Thong, chairman of Phuc Sinh, saw a huge obstacle ahead. Pepper and spices from a small Vietnamese company would have to compete with products from "giants" from the US, the Netherlands, and other countries.

"American, Dutch, and Singaporean companies don't lack money. We believe that when competing on the same playing field, we must be different and not accept being set up. This means we have to sell to Germany, France, Spain, etc., to create a strong satellite network, only then can we compete with other large businesses around the world," Mr. Thong explained.

In fact, Phuc Sinh's first customers in Singapore, who purchased pepper worth approximately $30,000 in 2003, remain partners and increased their purchases to $15 million in 2024. Partners in Switzerland, the Netherlands, and leading German companies have consistently chosen to purchase Vietnamese agricultural products.

"Vietnamese agricultural products sold domestically are not profitable. If sold to representatives of agricultural companies with offices in Vietnam, they also take all the profit. Not to mention that Southeast Asian countries are also very familiar with Vietnam, so they can buy goods at a cheaper price," Mr. Thong explained.

The question is how to reach Europe, which is both distant and challenging? But the European market will offer high prices, acceptance, and encouragement for private businesses to develop.

Mr. Thong was determined to create a unique path for Vietnamese pepper products in this market. Having successfully approached this market, Phuc Sinh, established in 2001, has experienced ups and downs like many other businesses. However, within just five years, it became the number one spice exporter in Vietnam, according to the Vietnam Pepper and Spice Association (VPSA). Each year, the company generates hundreds of millions of USD in revenue.

A product manufacturing process at Phuc Sinh - Photo: DN

Vietnamese products "fight to the death"

Referring to the Vicostone case, Mr. Truong Thai Dat - director of the DSC Securities Analysis Center - said: Fierce competition from China and new manufacturers has caused Mr. Nang's company's market share of stone exports to the US to decline sharply.

If, as of 2021, Vicostone still held up to 50% of the US export stone market share, it has now dropped to around 23%.

Mr. Ho Xuan Nang also acknowledged that 2023 was a challenging year, as his company's market is primarily export-oriented, spanning over 50 countries across five continents, while the global economic landscape remains unstable. "Specifically in the US market, demand hasn't increased due to a decrease in new construction; we plan to focus on the renovation market," Mr. Nang shared.

The biggest problem facing Vicostone, as well as many other high-value manufacturing businesses, is the influx of cheap goods.

Mr. Nang shared that the company has to cope with competitive pressure from businesses in China, India, Thailand, Malaysia, etc. "Vicostone has decided not to compete on price but on technology and differentiated products," Mr. Nang said about the company's response.

Mr. Do Hoai Nam, chairman of Intimex Group, said that the revenue figures were very successful. But behind those results are countless hardships and struggles of those involved in coffee production, from farmers to traders.

According to Mr. Nam, the most significant story regarding coffee last year was the price issue. But while Vicostone was "troubled" by low prices, Vietnam's largest coffee company was "shaken" by rising prices.

"Prices have increased unprecedentedly," Mr. Nam recounted, noting instances of contract breaches and supply chain disruptions. Looking back, it's clear that not many people can stay in this industry for long. Those who work in the coffee industry end up with gray hair.

"Once we've signed a contract with a customer, we have to make every effort to find enough supply to deliver the goods. With international partners, breaking a promise once means there won't be a second time," Mr. Nam explained about how his business operates.

Meanwhile, Mr. Phan Minh Thong was a peculiar guest, as he attended all the seminars and trade fairs related to agricultural exports around the world.

He decided to come because, in his opinion, this is a "treasure trove" of customer information. To ensure Vietnamese agricultural products gain international recognition, Mr. Thong revealed a little secret: don't choose large corporations to offer your products; instead, select small and medium-sized companies because you'll have more options during negotiations.

The world knows about Vietnamese spices and pepper, but to build trust, you need to do well in one market to penetrate dozens of others. This is the solution Phuc Sinh is aiming for.

"Like Germany, the number one market for food safety in Europe, although we need to upgrade our quality, getting into Germany is like 'unlocking' the path to the remaining 27 markets. The next step is to maintain quality to compete with multinational companies from the Netherlands, Singapore, the US, etc.," Mr. Thong shared the strategy.

With various types of pepper such as green pepper, black pepper, pink pepper, and soon ground pepper produced on a large scale thanks to technological investment, Vietnam is currently the only country in the world with pepper sauce products available in the European market.

Because of its diverse range of products and constant introduction of new items, Phuc Sinh retains many international customers. Frederic Tang, director of Prokuen (Hong Kong), a partner who has purchased many products from Phuc Sinh for 22 years, said: "I see this company selling its products all over the world, and selling them easily in Europe and America."

Therefore, even though many places sell agricultural products, we still choose Phuc Sinh. Phuc Sinh always finds ways to create something different with high-end products, which is why we are always attracted to their products, from white pepper, freeze-dried pepper, pepper sauce, etc.

Phuc Sinh's black pepper sauce product is particularly popular - Photo: DN

While Phuc Sinh has been making waves in the international spice industry, Intimex Group has also attracted attention with its coffee exports surpassing the billion-dollar mark. Mr. Do Ha Nam stated that several hundred containers of coffee regularly travel from Vietnam to customers and partners around the world.

"By the end of 2023, our coffee was present in more than 90 countries worldwide and accounted for 25% of the country's total coffee exports, contributing to the record-breaking figure of over $4 billion in coffee exports nationwide," Mr. Nam said.

Source: https://tuoitre.vn/khung-long-hang-viet-ra-the-gioi-20250107182529738.htm