return icon Vietnamnet.vn

Vietnamese sits on domestic gold mine, but cannot exploit it: experts

Vietnam’s 90 million-consumer market is a ‘gold mine’ in the eyes of foreign producers, but local companies are ignoring it, experts say.
VietNamNet Bridge - Vietnam’s 90 million-consumer market is a ‘gold mine’ in the eyes of foreign producers, but local companies are ignoring it, experts say.


{keywords}

Vietnam's 90 million-consumer market is a 'gold mine' in the eyes of foreign producers



Ngo Chung Khanh from the Multilateral Trade Policy Department under the Ministry of Industry and Trade described the situation at the HCMC International Economic Integration Forum held on November 8. 

At a working session between a government leader and foreign counterpart, the counterpart noted that Vietnam is sitting on a gold mine – the 90 million consumer market. However, while foreign businesses lust for the potential market, Vietnamese have forgotten about it. 

As protectionism has returned and importing countries are erecting more technical barriers to replace tariff barriers which have been removed under FTAs, Vietnamese enterprises have been advised to focus on the home market. 

“Every enterprise tries to export products rather than sell them in the home market,” Khanh said.

As protectionism has returned and importing countries are erecting more technical barriers to replace tariff barriers which have been removed under FTAs, Vietnamese enterprises have been advised to focus on the home market. 

Aalok Pandit from the Asia-Africa Retailers’ Association said at an event organized in HCMC late last week that abundant indigenous resources are a great advantage to Vietnamese businesses. 

It is necessary to exploit the resources in the most effective way and conquer domestic consumers’ hearts before reaching out to the world market.

Nguyen Van Khoi from the General Directorate for Standards, Measurement and Quality also said that when exporting products Vietnamese enterprises meet a ‘forest’ of requirements. They also encounter problems in packaging, labeling and quality indexes.

If they satisfy requirements of Vietnamese consumers, who are getting choosier, enterprises will have a high number of customers and can satisfy foreign consumers as well.

FTAs bring great opportunities, but also create stiff competition. To take full advantage of the opportunities to be brought by FTAs, businesses need to take the initiative in learning about FTA commitments and business opportunities. However, analysts say that Vietnamese enterprises are not dynamic and creative.

Regarding technical barriers, Khanh said anti-dumping duties and technical standards are used widely in the world to protect domestic production.

Meanwhile, Vietnam doesn’t have experience in building up similar technical barriers and protection tools. Vietnam’s regulations are legitimate, but face complaints from other countries. 

Ly Kim Chi, chair of the HCMC Food Association, stressed that the problem needs to be settled urgently, because erecting technical barriers are vital for enterprises.

“We recently received a dispatch on stopping the import of wheat because of strange weeds. The problem was settled, but it brought consequences,” she said.

“We received officials from US agencies and they said Vietnam needs to be transparent, and make clear announcements when setting up technical barriers,” she said.


RELATED NEWS

Local brands ignore the domestic market, focus on exports

Vietnamese goods losing market share to imports in home market


Thanh Lich

MORE NEWS

Four more vaccines to be added to Vietnam's national expanded immunization program

Four more vaccines will be added to the Expanded Immunization Program for the 2021-2030 period under the Resolution No. 104 of the Government on the roadmap to increase the number of vaccines in the program signed by Deputy PM Vu Duc Dam.

Seaweed: precious natural gift of Quang Ngai Province

Quang Ngai seaweed proving a sustainable crop to boost local incomes.

Startup festival to be held in Khanh Hoa this week

A startup festival (Techfest) for the south-central and Central Highlands regions will take place in Khanh Hoa province on August 19-20, heard a press conference in Nha Trang city on August 16.

Vietnam consults WB experts about National Master Planning

Vietnam targets becoming a developing country with modern industry and upper middle income by 2030, and a high-income developed nation by 2045, said Minister of Planning and Investment Nguyen Chi Dung.

Fuel reserves enough for 6-1/2 days of consumption

The Ministry of Industry and Trade in a recent report said that the national fuel reserves are enough for six days and a half of consumption and equivalent to nine days of imports.

Hanoi urban area faces break-ins

Residents living at the Gamuda Gardens villas in Hanoi are complaining about security problems following a rise in the number of robberies.

Businesses need orders as purchasing power in export markets falls

The increase in input costs plus the decline in demand in many large markets are posing challenges to businesses in the last months of the year.

What is the future of Phu Quoc?

Phu Quoc is known as a resort tourism paradise but in the future, the city island will be not only a destination for tourists but also an economic and financial center in the region and the world.

Time for major realtors to buy land

Cash flow to the real estate market has been tightened. Now is the time for major realtors to buy land.

Son Tung MTP's younger sibling sparked controversy following his debut

Nguyen Viet Hoang, younger brother of Vietnamese pop sensation Son Tung MTP, made his debut as a singer under the moniker 'MONO', sparking widespread criticism for his lackluster vocals and questionable fashion sense.

First district to prohibit single-use plastic next month

Co To island district in the northern province of Quang Ninh will officially ban visitors from bringing plastic bottles and bags to the island from September 1 in a bid to spur sustainable tourism.

VIETNAM NEWS HEADLINES AUGUST 16

First district to prohibit single-use plastic next month

India becomes Vietnam’s biggest meat seller in H1

Vietnam imported over 79,700 tons of meat and meat products worth US$250.9 million from India in the first half of 2022, making the latter the former’s largest meat supplier, according to the Import-Export Department.

VIETNAM BUSINESS NEWS AUGUST 16

Remittances to HCMC declines by 13% in H1

Defense Ministry approves of long-planned cargo airline

The Ministry of National Defense has thrown its support behind a plan to issue an air transport license to IPP Air Cargo JSC, whose chairman is billionaire Johnathan Hanh Nguyen, according to a dispatch recently sent to the Government Office.
back_to_top