Illustrative image (Source: VNA)

Hanoi (VNA) – Improving quality will be key for made-in-Vietnam products to keep its market share in the face of increasingly fierce competition from imports, according to a trade official.

Nguyen Thi Thu Trang, Director of the World Trade Organisation and Integration Centre of the Vietnam Chamber of Commerce and Industry, made the warning, adding that if domestic manufacturers fail to capitalize on their advantages in transport costs and tax, they may lose market share to imported products.

However, the Ministry of Industry and Trade was of the view that there is only a small possibility that import products can replace made-in-Vietnam products on the market, at least in the near future.

The ministry said that import products are mostly marketed by modern retail forms like shopping malls, supermarkets and convenience stores, which account for just between 25 and 30 percent of Vietnam’s retail market.

The remaining market share is still dominated by traditional retail forms like markets, grocery stores and specialised stores, which are mostly owned by local retailers. Those retailers continue to rely on made-in-Vietnam products, which are cheaper thanks to lower expenses on transport and procedures, lower tax, and advantages in products’ freshness.-VNA