Agricultural processors should develop their local distribution systemsand not just focus on exports if they wish to develop sustainably, saidan official at the Ministry of Industry and Trade (MoIT).
Ho Thi Kim Thoa, deputy minister of industry and trade, said thedomestic market for farming goods and services in 2011 showed ayear-on-year increase of 24.3 percent and reached 2,004 trillion VND(95.4 million USD).
She said that if processors onlyfocused on exports and did not expand their share of the local marketthey will be vulnerable to global downturns. Meanwhile, she said,foreign firms have expanded their market share in Vietnam .
Thoa cited the example of Viet Tien Garment, Nha Be Garment, Garment10, Biti's Footwear and Vinamilk that had successfully boosted theirshare of the local market.
However, numerous processors of farming products have faced difficulties developing their share of the local market.
Manh Quan Dong, director of Phuong Dong Export Vegetable and FruitCompany in the northern province of Bac Giang, said his company haveencountered many challenges in the local market.
Dongsaid his company was based far from Hanoi and other key economiccentres with high consumption levels, which meant transport costs werehigh.
Tran Hong Duc, director of Bac Giang Export Farmingand Food Processing Factory, said many processors had limited capitaland struggled to meet the costs of warehouse fees.
TranThi Hong Hoa, from Hanoi Trading Company (Hapro), said that thesupermarket chain set high quality standards on the products it sold,which many domestic producers could not meet. She also said it isessential to have a trademark.
Thoa said local firms need to invest in a distribution system and promote themselves better.
She added that the ministry has organised meetings between suppliersand retailers such Hapro and Saigon Co.op to help sell their products.-VNA
Ho Thi Kim Thoa, deputy minister of industry and trade, said thedomestic market for farming goods and services in 2011 showed ayear-on-year increase of 24.3 percent and reached 2,004 trillion VND(95.4 million USD).
She said that if processors onlyfocused on exports and did not expand their share of the local marketthey will be vulnerable to global downturns. Meanwhile, she said,foreign firms have expanded their market share in Vietnam .
Thoa cited the example of Viet Tien Garment, Nha Be Garment, Garment10, Biti's Footwear and Vinamilk that had successfully boosted theirshare of the local market.
However, numerous processors of farming products have faced difficulties developing their share of the local market.
Manh Quan Dong, director of Phuong Dong Export Vegetable and FruitCompany in the northern province of Bac Giang, said his company haveencountered many challenges in the local market.
Dongsaid his company was based far from Hanoi and other key economiccentres with high consumption levels, which meant transport costs werehigh.
Tran Hong Duc, director of Bac Giang Export Farmingand Food Processing Factory, said many processors had limited capitaland struggled to meet the costs of warehouse fees.
TranThi Hong Hoa, from Hanoi Trading Company (Hapro), said that thesupermarket chain set high quality standards on the products it sold,which many domestic producers could not meet. She also said it isessential to have a trademark.
Thoa said local firms need to invest in a distribution system and promote themselves better.
She added that the ministry has organised meetings between suppliersand retailers such Hapro and Saigon Co.op to help sell their products.-VNA
