The last base for Vietnamese goods
Finding a place in supermarkets is increasingly difficult so Vietnamese producers have to strengthen distribution channels at traditional markets and rural markets.
A recent survey showed that, after several years of implementation of the campaign "Vietnamese people use Vietnamese goods", the rate of made-in-Vietnam products has accounted for 80-90% of goods in supermarkets. But in fact, a number of small- and medium-sized enterprises have been kicked out of supermarkets and the figure of 80-90% of Vietnamese goods in supermarkets are actually produced by multinational companies in Vietnam, not by wholly-owned Vietnamese firms.
In the drink industry, products of the biggest Vietnamese beer producer at present - Saigon Beer Company - account for less than 20% in supermarkets. The remaining 80 percent is held by foreign firms such as Heineken, Tiger, and Sapporo. In the cosmetics industry, 80% of the market belongs to Unilever, P&G, Nivea, and Colgate.
Photo: Supermarkets now account for only 25% of the market so Vietnamese enterprises have been urged to strengthen traditional distribution channels and rural markets.
Vietnamese small and medium enterprises are looking for a way out by taking care of their specialized stores and finding ways to keep and then expand their networks in rural areas. And it seems that they have only a few years to strengthen their "last base".
Experts said that after standing firm in big cities, modern distributors will start eyeing small cities and then rural areas. Unilever, Procter & Gamble, PepsiCo, Dutch Lady, Acecook, and Nestle have been building their own distribution networks throughout the country, even in remote and isolated areas.
Unilever even worked with the Vietnam Women's Union to distribute its goods to villages through projects to help poor rural women have jobs and earn extra income. Some Vietnamese companies have applied this method and achieved success, like Vinamilk, Masan, Hau Giang Pharmaceutical, and Kinh Do.
However, these represent only a few companies, and Vietnamese producers have only one year to develop their distribution networks before goods from Thailand, Indonesia and Malaysia come to the countryside with a zero import tariff.
