Opportunities in risks

Covid-19 has dealt a strong blow on the global economy, including Vietnam.

The Ministry of Planning and Investment’s (MPI) report released in early June pointed out that in the first four months of the year, the number of newly established businesses decreased by 13.2 percent compared with the same period last year, while the number of businesses suspending their operation temporarily increased by 33.6 percent.

However, many enterprises have been prospering thanks to new business strategies.

Despite the pandemic, some businesses are thriving because they have changed business strategies by developing niche markets.

Truong Gia Binh, chair of the Vietnam Digital Agriculture Association (VIDA), at a workshop held in April, said the solution is seeking opportunities in niche markets.

“Chinese and Indian markets, for example, have just begun recovering. If businesses can obtain pieces of these markets, they will be able to survive and preserve the labor force,” he said.

Ministries and state management agencies also believe that conquering niche markets is a wise strategy for now.

The Ministry of Culture, Sports and Tourism has launched the ‘Vietnamese travel Vietnam’ campaign, urging travel firms to exploit the domestic market.

Meanwhile, the Vietnam Fatherland Front’s Central Committee has launched ‘Buy Vietnamese goods’ campaign.

In the real estate market, while many developers have suffered from slow sales due to low demand, others have taken a wise move by developing apartment projects at reasonable costs. They understand that unlike high-end resorts or apartments, demand for affordable products is high.

A report from Savills Vietnam found that demand for affordable housing and apartments is rising, but there is an oversupply of mid-range and high-end products. Demand for affordable housing priced at below VND25 million per square meter accounts for 70-80 percent of total market demand.

Meanwhile, CBRE believes that niche markets such as automated logistics and cold storage will see a sharp rise in the time to come. There will be more clients that will need to lease cold storage systems because of the increase in consumption and the rise of omni-channel distribution of fresh food.

In the textile and garment industry, many companies, instead of sitting idle because of the lack of orders from importers, have found opportunities in niche markets when making cloth face masks and specialized protective clothing for domestic consumption and export.

In the aviation sector, the newcomer Bamboo Airways decided to focus on niche markets. Instead of ‘squeezing’ into crowded airports in HCM City and Hà Noi, the air carrier focused on connecting destinations that have great tourism potential.

Kim Chi 

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