Vietnam’s cat chu mango is sold in Japan at higher prices than mangoes from Thailand and the Philippines though its quality is not higher (Photo: kienthuc.net)HCM City (VNS/VNA) - To gain entry to the Japanese market,Vietnamese firms should pay attention to two factors, quality and price,experts told a roundtable on “Selling products to Japanese market” in Ho ChiMinh City on December 12.
Yuichiro Shiotani, general director of Aeon Topvalu Vietnam, said Japan is adream market for many businesses around the world and is therefore verycompetitive.
He said the value of a product is defined by its quality and price, meaning ifa product’s quality improves, its value goes up.
So if a foreign company wants to export to Japan, it should know how they aregoing to compete with the many rivals who sell the same products as them, hesaid.
“If the quality is the same, Japanese consumers will choose the cheaper productregardless of whether it is imported or not.”
He gave the example of the mango, a favourite fruit among Japanese consumers,including for him.
Vietnam’s cat chu mango is sold in Japan at higher prices than mangoes fromThailand and the Philippines though its quality is not higher.
It is not consistent in terms of sweetness, and consumers would not be happy ifthey have to pay the same price for both a sweet and a sour mango, he said.
“I talked to Japanese farmers about this mango issue. They told me controllingthe sweetness of mangos is totally doable. It is not complicated; it is aboutpreservation after harvest and during delivery.”
He said if firms want to sell products to the Japanese market, the best way isto go to the country and learn the habits of consumers there.
“They should compare their products with those being sold on the market to makeimprovements maybe by improving quality or reducing prices.”
Nguyen Manh Viet, CEO of Fosella, which helps take Vietnamese firms to theJapanese market, said it can take up to a year for his clients to secure acontract to export to Japan since it is a very demanding market in terms ofquality.
He cited the example of a confectionery company which lost a Japanese orderbecause of changing one of their suppliers without prior notification.
A textile company paid a similar price for not following proper proceduresduring the shipping stage, he said.
“The company used three-layer carton boxes to transport the products instead ofthe five-layer ones the Japanese partner had requested. The goods were damagedand the Vietnamese company had to bear the loss.”
He said these examples show how crucial it is for Vietnamese firms to ensurequality assurance and adopt quality control processes.
Sometimes, even when they have all the required information about the standardsand requirements expected in the Japanese market, Vietnamese firms struggle toenter this market.
Shiotani said Vietnamese rules and regulations are sometimes even stricter thanJapan’s but their failure to follow them in practice is the main reason whyVietnamese firms cannot make products with guaranteed quality, he said.
“The problem with firms is that they do not see it is a problem when theycannot follow all the rules and requirements. But it is not just a problem in Vietnam;it can be seen in other markets as well.”
Firms should close the gap between what they say in theory and what they do inpractice to improve the quality of their products, he added.
According to Nguyen Thi Hong Minh, president of the Association of FoodTransparency, many Vietnamese firms underestimate the importance of having aneco-system where firms and farmers work together to ensure consistent quality.
“Trading companies just care about buying and selling products. To come back to[Shiotani’s] mango story, if [farmers] can make sure the land is good and theuse of fertilisers is adequate, then its quality can be kept consistent, butfew companies care about these things.”
What firms should do is to work with farmers and monitor them to ensure productquality, she said.
She said one of the problems with farmers in Vietnam is that they “want to makemoney fast.”
There are many farmers who follow good agricultural practices, but they arecontent to sell to traders who come to their farms.
“There should be a way to connect farmers via groups or co-operatives so thatmembers can create a community where we cross-check one another to make sureeveryone complies with quality standards.
“If we can do that, buyers will come to us and not the other way around.”— VNS/VNA
Yuichiro Shiotani, general director of Aeon Topvalu Vietnam, said Japan is adream market for many businesses around the world and is therefore verycompetitive.
He said the value of a product is defined by its quality and price, meaning ifa product’s quality improves, its value goes up.
So if a foreign company wants to export to Japan, it should know how they aregoing to compete with the many rivals who sell the same products as them, hesaid.
“If the quality is the same, Japanese consumers will choose the cheaper productregardless of whether it is imported or not.”
He gave the example of the mango, a favourite fruit among Japanese consumers,including for him.
Vietnam’s cat chu mango is sold in Japan at higher prices than mangoes fromThailand and the Philippines though its quality is not higher.
It is not consistent in terms of sweetness, and consumers would not be happy ifthey have to pay the same price for both a sweet and a sour mango, he said.
“I talked to Japanese farmers about this mango issue. They told me controllingthe sweetness of mangos is totally doable. It is not complicated; it is aboutpreservation after harvest and during delivery.”
He said if firms want to sell products to the Japanese market, the best way isto go to the country and learn the habits of consumers there.
“They should compare their products with those being sold on the market to makeimprovements maybe by improving quality or reducing prices.”
Nguyen Manh Viet, CEO of Fosella, which helps take Vietnamese firms to theJapanese market, said it can take up to a year for his clients to secure acontract to export to Japan since it is a very demanding market in terms ofquality.
He cited the example of a confectionery company which lost a Japanese orderbecause of changing one of their suppliers without prior notification.
A textile company paid a similar price for not following proper proceduresduring the shipping stage, he said.
“The company used three-layer carton boxes to transport the products instead ofthe five-layer ones the Japanese partner had requested. The goods were damagedand the Vietnamese company had to bear the loss.”
He said these examples show how crucial it is for Vietnamese firms to ensurequality assurance and adopt quality control processes.
Sometimes, even when they have all the required information about the standardsand requirements expected in the Japanese market, Vietnamese firms struggle toenter this market.
Shiotani said Vietnamese rules and regulations are sometimes even stricter thanJapan’s but their failure to follow them in practice is the main reason whyVietnamese firms cannot make products with guaranteed quality, he said.
“The problem with firms is that they do not see it is a problem when theycannot follow all the rules and requirements. But it is not just a problem in Vietnam;it can be seen in other markets as well.”
Firms should close the gap between what they say in theory and what they do inpractice to improve the quality of their products, he added.
According to Nguyen Thi Hong Minh, president of the Association of FoodTransparency, many Vietnamese firms underestimate the importance of having aneco-system where firms and farmers work together to ensure consistent quality.
“Trading companies just care about buying and selling products. To come back to[Shiotani’s] mango story, if [farmers] can make sure the land is good and theuse of fertilisers is adequate, then its quality can be kept consistent, butfew companies care about these things.”
What firms should do is to work with farmers and monitor them to ensure productquality, she said.
She said one of the problems with farmers in Vietnam is that they “want to makemoney fast.”
There are many farmers who follow good agricultural practices, but they arecontent to sell to traders who come to their farms.
“There should be a way to connect farmers via groups or co-operatives so thatmembers can create a community where we cross-check one another to make sureeveryone complies with quality standards.
“If we can do that, buyers will come to us and not the other way around.”— VNS/VNA
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