Promotion and expanded distribution chains are vital measures to help Vietnamese goods penetrate rural areas more easily.
Vietnamese products has won lots of rural consumers thanks to varioussales promotion programs such as Buy Vietnamese Goods which was seen asthe a positive solution to Vietnamese goods sales in rural areas andbridging enterprises and rural consumers, said the Vietnam EconomicNews.
According to the Ministry of Industry and Trade’sstatistics, since the implementation of rural Vietnamese goods salesprogrammes in 2009, localities across the country have conducted 1,150rural sales trips, involving 11,500 business participants, attracting2,288,731 local visitors and registering total sales revenue of morethan 1.7 trillion VND.
Goods featured in these programmesincluded food, clothes, shoes, household equipment, and notebooks ofclear origin, varied design, reasonable prices and appropriateafter-sales services.
In addition to sales trips, Vietnameseproducers have also managed to insert their products into ruraldistribution systems. To date, domestic brands such as My Hao, Kinh Do,and Vinamilk have gradually become familiar to rural consumers.
Despiteinitial positive successes, rural sales programmes are still facingdifficulties. “The rural market is currently not attractive enough tobusinesses due to low purchasing power and high transportation costs.Currently only 10-15 companies producing consumer goods are commonlyfound in rural and remote areas including Unilever, Dutch Lady, P &G, Pepsi, Nestle, Vinamilk, Vina Acecook, My Hao and Kinh Do,” saidDirector of Business Studies and Assistance Center (BSA) Vu Kim Hanh.
Whiledairy and dishwashing products have dominated the rural market,textiles and footwear have not due to relatively high prices. Forexample, Viet Tien branded shirts are commonly priced around 300,000VND, making them unaffordable for most rural consumers.
Inaddition, the construction and expansion of rural distribution systemsalso require appropriate strategy and considerable investment, which is agreat obstacle for small and medium enterprises.
Ho Thi KimThoa, Deputy Minister of Industry and Trade and Deputy Director of BuyVietnamese Goods Programme Steering Committee said: “This year, we willboost the fight against smuggling and trade fraud in order to protectdomestic production and consumer rights.”
“In addition, we willcontinue to enhance the programme through asking the government support,for example, in the form of a national action strategy to promoteVietnamese goods consumption until 2020, with a vision towards 2030,”she said, adding that the Ministry of Industry and Trade will organize avote for 20 best Vietnamese goods items and have support mechanism toincrease their competitiveness.
“The most important factors tohelp businesses dominate the rural market are businesses should producehigh quality products at competitive prices; consider traditionalpractices and ethnic culture in designing models; and promoteadvertising activities along with gradually expanding rural retailnetworks,” Chairman of the Central Committee of the Vietnam FatherlandFront Nguyen Thien Nhan noted.
He added that management agenciesshould improve current management control systems for enterprises in theapplication of standard systems for goods. These measures will probablyhelp improve rural purchasing power of Vietnamese goods.-VNA
Vietnamese products has won lots of rural consumers thanks to varioussales promotion programs such as Buy Vietnamese Goods which was seen asthe a positive solution to Vietnamese goods sales in rural areas andbridging enterprises and rural consumers, said the Vietnam EconomicNews.
According to the Ministry of Industry and Trade’sstatistics, since the implementation of rural Vietnamese goods salesprogrammes in 2009, localities across the country have conducted 1,150rural sales trips, involving 11,500 business participants, attracting2,288,731 local visitors and registering total sales revenue of morethan 1.7 trillion VND.
Goods featured in these programmesincluded food, clothes, shoes, household equipment, and notebooks ofclear origin, varied design, reasonable prices and appropriateafter-sales services.
In addition to sales trips, Vietnameseproducers have also managed to insert their products into ruraldistribution systems. To date, domestic brands such as My Hao, Kinh Do,and Vinamilk have gradually become familiar to rural consumers.
Despiteinitial positive successes, rural sales programmes are still facingdifficulties. “The rural market is currently not attractive enough tobusinesses due to low purchasing power and high transportation costs.Currently only 10-15 companies producing consumer goods are commonlyfound in rural and remote areas including Unilever, Dutch Lady, P &G, Pepsi, Nestle, Vinamilk, Vina Acecook, My Hao and Kinh Do,” saidDirector of Business Studies and Assistance Center (BSA) Vu Kim Hanh.
Whiledairy and dishwashing products have dominated the rural market,textiles and footwear have not due to relatively high prices. Forexample, Viet Tien branded shirts are commonly priced around 300,000VND, making them unaffordable for most rural consumers.
Inaddition, the construction and expansion of rural distribution systemsalso require appropriate strategy and considerable investment, which is agreat obstacle for small and medium enterprises.
Ho Thi KimThoa, Deputy Minister of Industry and Trade and Deputy Director of BuyVietnamese Goods Programme Steering Committee said: “This year, we willboost the fight against smuggling and trade fraud in order to protectdomestic production and consumer rights.”
“In addition, we willcontinue to enhance the programme through asking the government support,for example, in the form of a national action strategy to promoteVietnamese goods consumption until 2020, with a vision towards 2030,”she said, adding that the Ministry of Industry and Trade will organize avote for 20 best Vietnamese goods items and have support mechanism toincrease their competitiveness.
“The most important factors tohelp businesses dominate the rural market are businesses should producehigh quality products at competitive prices; consider traditionalpractices and ethnic culture in designing models; and promoteadvertising activities along with gradually expanding rural retailnetworks,” Chairman of the Central Committee of the Vietnam FatherlandFront Nguyen Thien Nhan noted.
He added that management agenciesshould improve current management control systems for enterprises in theapplication of standard systems for goods. These measures will probablyhelp improve rural purchasing power of Vietnamese goods.-VNA
