Finding niche market opportunities for exports

Preparing bananas for export - photo: Ngoc Anh

Textile and garment enterprises have to look for new markets, as the number of orders from such major markets as the US and the EU has decreased. Pham Van Viet, Chairman of the Board at Viet Thang Jean Co., Ltd., said his company has to penetrate niche markets like Canada and the Middle East to overcome difficulties.

Pham Quang Anh, Director of Dony Garment Company, said his company has met and negotiated with major brands’ wholesalers in the Middle East and even offered lower prices to attract large orders. As a result, a number of importers have agreed to triple their orders, Anh said.

Do Thi Kim Loan, General Director of Sao Nam Trading and Production Co., Ltd., said that as soon as the US market slowed down, her company looked for customers in other markets such as Australia and Canada to partially offset the decline of its main markets. Sao Nam restructured its factory and procured more modern machines and equipment to improve production and product quality.

Vu Kim Hanh, Director of the Business Studies and Assistance Center (BSA), said many major markets have not recovered yet, so it is necessary to shift to newly emerging and potential markets such as the Middle East, Africa, Latin America and South Asia.

For example, the export of rice to Africa has been highly rated because African countries’ demand for rice remains high and import standards and product type demands are not too high and remain simple.

While many groups of exports declined sharply, farm produce (including fruits, vegetables and rice), forest product and seafood exports all grew in the first half of this year.

Experts have said enterprises should eye and tap potential markets with a great demand for Vietnamese goods and farm produce, such as Iran. Do Quoc Hung, Deputy Director of the Ministry of Industry and Trade’s Asia-Africa Market Department, said Vietnam’s trade with Asian and African markets has reached about US$500 billion, accounting for 68 percent of the country’s foreign trade value. However, businesses haven’t had long-term plans for these potential markets, Hung said.

Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City, said that with a positive outlook, China, Australia and the Middle East can make up for the decline in European and American markets, and businesses need to quickly find partners there.

Deputy Director of the Ministry of Industry and Trade’s Industry Agency, Pham Tuan Anh said the industry and trade sector has realized solutions to finding markets for products and exports, including trade promotion and support for businesses to find new orders and expand markets. The ministry has had orientations to help businesses penetrate new and potential markets of India, Africa, the Middle East, South America, and the Association of Southeast Asian Nations (ASEAN).