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To hold sway over the domestic market, Vietnamese companies must develop a long-term strategy to improve the quality of their products while maintaining reasonable prices and their prestige.

Bringing Vietnamese goods to rural areas programme

In recent times, the “bringing Vietnamese products to rural areas” programme has made significant contributions to developing the domestic market and promoting the “Vietnamese people using Vietnamese products” campaign.

Domestic customers prefer home-made products

Through many programmes launched by local departments of industry and trade, trade promotion agencies and associations across the country, rural people are now familiar with a wide range of products bearing Vietnamese trademarks which are sold 5-10 percent lower than normal market prices.

Nguyen Thi Xuyen from Can Thanh town, Ho Chi Minh City, says farmers are very happy with the programme as they can now access high quality goods at reasonable prices.

Most businesses are set to expand their distribution networks rather than just increasing their turnover.

Dinh Thi Hien from Chau Thanh district, Tien Giang province, says she likes Vietnamese products as they are of good design and high quality. “I think Vietnamese people will stick with the use of home-made products,” she adds. “This explains why 80 percent of all items on display at rural fairs are of Vietnamese origin.”

For many businesses, participating in such fairs will not only help them clear their inventories in the short run, but also build trust in the long run.

Vinamilk Public Relations Manager Bui Thi Huong says preference for home-made products like Vinamilk has led to a 40 percent increase in the company’s productivity and turnover.

Businesses need good planning

No businesses deny the rural market is potential, but how to corner it is another matter. Many have realized the need to link distribution networks between cities, provinces, and regions, even between remote and mountainous districts, in addition to improving the quality of their products, diversifying designs and lowering prices to meet customer taste and demand.

Nguyen Thi Thanh Huyen, Director General of Garment Corporation 10, proposes expanding the concept of “giving priority to the use of Vietnamese products”.

She argues that domestic customers should stick with the use of home-made products and businesses on their part should improve the quality of their products and services.

Since the first trade fair in March 2010, the Vietnam Business Studies and Assistance Centre (BSA) has organised more than 80 similar fairs to bring Vietnamese goods to rural customers across the country.

The centre’s director Vu Kim Hanh says the programme has supported many businesses in delivering their products directly to the hands of customers and improving their trademark reputation.


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