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Economics

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To expand distribution channels of Vietnamese goods

In order to expand the campaign "Vietnamese people to give priority to Vietnamese goods", enterprises and organizations have diversified distribution channels for Vietnamese goods. However, long-lasting solutions are needed to reach further on the market.

The Vietnamese branding process requires enterprises to reorganize from production to distribution stages. In photo:  Bringing Vietnamese goods to industrial parks in My Phuoc ward, Ben Cat Town.

 To create a spreading

Due to the implementation of Action Program No. 99-CTH/TU dated 18 June 2015 on the campaign "Vietnamese people to give priority to Vietnamese goods" in period 2015-2020, Steering Committees for the campaign at nine districts, towns and cities were established to rapidly carried out works across the province. The objective is to encourage all officials and people to change the perception and consumer behavior to give priority to using goods, products and services of Vietnamese enterprises and organizations. At the same time Vietnamese enterprises, producers are also committed to improving the quality of products, protecting consumers, building local brand names, expanding distribution channels for domestic goods...

Accordingly, during the last 5 years, the authority and enterprises have implemented many solutions to stimulate this campaign, including solutions to diversify forms, expand distribution channels, and bring Vietnamese goods to consumers; supporting businesses in trade promotion activities and expanding domestic market, renewing the management, and reorganizing market management.

Provincial Department of Industry and Trade directed its affiliated units to plan and implement a variety of trade promotion activities for Vietnamese enterprises; enhance dissemination, bring Vietnamese goods to rural areas and industrial clusters, stabilize the market, support enterprises to participate in trade promotion, trade connection... Distribution channel expansion activities have increased its effectiveness, created a great spread, diversified and qualified product supply.

With the support of supermarkets in the province, many businesses have expanded their market share, especially modern retail channels. According to Duong Bao Khuong, Deputy Director of Co.opmart Binh Duong Supermarket, the persistence of the localization strategy has increased the proportion of Vietnamese goods, accounting for 90 - 95% of the goods structure sold at Co.opmart Binh Duong. The supermarket created a remarkable impact on both sides of the consumer relationship, namely Vietnamese enterprises and Vietnamese consumers.

Enterprises are increasingly aware of the importance of the domestic consumption market, making investment efforts to exploit potential market segments through promotional activities, self-introduction media, bringing goods to markets, supermarkets. In addition, businesses also took part in mobile sales trips, bring Vietnamese goods to the countryside, Vietnamese goods fairs, thereby expanding consumers and promoting brand name, creating a diverse supply of products, meeting needs of the people. As a result, Vietnamese products have been increasingly well-known and favored by many consumers.

Nguyen Truong An, who is in charge of the business of Nha Thy Company (coffee products, cereal powder, beverage), said that in recent years, provincial authority created favorable conditions for enterprises to participate in domestic fairs, shipments of goods to rural areas. This is where businesses advertise their images as well as expand trade. According to Mr. An, previously, their consumers were mostly in Binh Duong, but after 8 years persistently pursuing shipments to many parts of the country, up to now, the company has built up consumption system in 12 provinces and cities. Number of potential customers increased and number of orders was many times higher.

To heighten Vietnamese brand names

Due to cooperation programs, trade promotion, and efforts of enterprises, local economic sectors have linked up, expanded distribution channels, purchased, processed and consumed goods. However, the expansion of distribution channels still needs more effort to bring Vietnamese products to consumers. Nguyen Thi Thuy Ngan, in Chanh My ward (Thu Dau Mot City), said that on the last Tet holiday, she received a delicious box of coffee from a friend; this is a product of Binh Duong enterprise, so she went to a market to buy but it's not simple. According to her, not only buyers but also sellers need high-quality Vietnamese goods. If businesses have not invested in advertising and marketing, their products will be difficult to develop market share and find new customers.

According to Ho Van Binh, Deputy Director of provincial Department of Industry and Trade, Binh Duong currently has no shortage of characteristic products with good brand name. However, producers are small and medium-sized establishments with manual production, so the quality control is still limited. This also makes distribution units and retailers confused when bringing products to the market. To solve this problem, enterprises with characteristic products and the authorities need to have specific solutions to support manufacturers to access new and appropriate processing technology, invest in designs and packages to make products more eye-catching, thereby conquering consumers and reaching out to larger markets.

Reported by Thanh Hong - Translated by Ngoc Huynh

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