At production line of Ton Dong A factory.
Part 1: Big opportunity
Joining in the free trade agreement (FTA) opens many opportunities of cooperation and development for enterprises and requires enterprises to have capacity of vision, strategy, management to compete in a large and equal playground.
Building trademark
This is a “front” being implemented by local enterprises in general and producers in particular. Enterprises often choose their own way in building trademark with big investment in finance to popularize their trademark to the public.
For instance, in the presence of Nick Vujice in Vietnam, the public becomes familiar with trademark of Ton Hoa Sen. Through “golden spoon” program, diners know about new brand name of Ly’s Horeca under Minh Long I porcelain Co.Ltd.
Ly Ngoc Minh, general director of Minh Long I porcelain Co.Ltd. said “Minh Long I porcelain products become famous across markets such as the EU, US, Japan. In the past, we paid less attention to trademark and market because there were distributors and trade representatives. But now, we can not wait clients to come with us but have to bring our products to clients”.
Regarding building of trademark for joining successfully in FTA, Nguyen Thanh Trung, general director of Ton Dong A JSC shared that a best named product firstly have to be accepted in its original place and gathers criteria at locations that it is imported. Meanwhile, Huynh Quang Thanh, chairman of Binh Duong Timber Processing Association said that Binh Duong now accounts for more than 60% of timber export revenue of the whole country and timber makers and exporters are establishing timber industrial compound. This is the way to market and build trademark.
Overcoming challenges
Huynh Cong Phat, vice general director of Binh Duong Production – Import & Export Co.Ltd. stressed that one of important elements helping the company complete its tasks of production and business in the past year was thanks to flexibility of leadership, production, business and trademark of product.
In reality, human resources will decide success, so the company considers manpower as a very prestigious asset.
Another factor deciding success of product is the very quality of product. Over the past years, apparel and food produced by provincial enterprises exported to the EU and US must meet many harsh conditions of food safety and hygiene, quality and etc.
Huynh Quang Thanh added that for timber products, if makers are not decisive, they will face difficulties of overcoming challenges.
Strategy and long-term investment needed
Once making decision of cooperation and investment, enterprises set out detailed goal and strategy. Vietnam is a new market, so building field becomes a hot market attracting investors. At a seminar on developing new building materials held by the provincial Construction Department, participants said that many cement, brick and steel makers purchase qualified materials from China but they face many problems of production. Most of ideas at the seminar affirmed that most of products from China ensure quality. The most important thing lies in selection and investment strategy.
In order to overcome these challenges, it requires to make greater efforts of business administrators. Nguyen Thanh Trung said that business administrators always face requirements of business and profit, so they have to short and long-term investment strategies.
Reported by D.Chi – Translated by A.C
