Hanoi (VNA) - Vietnam’s large domestic market and increasingly diverse consumer demand are opening up room for Vietnamese products to grow, but companies will have to earn that growth through quality, price and distribution rather than relying on patriotic buying campaigns.
Big market, ample room for growth
After years of rolling out the “Vietnamese people prioritise Vietnamese goods” campaign, consumer awareness and buying habits have changed. Homegrown products now fill retail chains, supermarkets, convenience stores, traditional markets and e-commerce platforms, while Vietnamese firms invest in quality, design and branding.
From a market development standpoint, there is still plenty of room to expand. A large population, varied demand, rapid urbanisation and a rising middle class make the home market highly promising, which is an advantage few economies have and a foundation for long-term corporate strategy.
Notably, the domestic market has changed a lot. Consumers no longer pick products solely on whether they are domestic or foreign. Quality, price, origin, design, safety, after-sales service and shopping experience increasingly drive purchases.
That shift imposes a clear requirement. To win at home, Vietnamese firms must create real value and competitiveness. Preferential treatment can open doors, but quality and consumer fit will decide long-term successes.
Still, many Vietnamese products struggle with branding, design, packaging, quality standards and distribution. Some companies lag market trends and underuse e-commerce and new sales channels. In rural and mountainous areas, access to quality goods remains limited.
Competing on value
The priority now is to stop “selling what we have” and start “producing what the market needs”. Companies must understand consumers, anticipate trends, control quality, cut costs and build products a distinct identity. Competing on value will ease excessive reliance on short-term campaigns or subsidies.
To compete well, businesses also need a domestic market that is more transparent, accessible and modern. A broad, efficient distribution system can cut intermediary costs, get products to consumers faster and help companies scale up. Modern retail, e-commerce, digital platforms and omnichannel models are opening new routes to buyers, especially for small and medium-sized enterprises.
The State should provide a pro-business environment, improve commercial infrastructure, support supply-demand links and trade promotion, protect consumers, and fight counterfeit and substandard goods. Localities, meanwhile, should use their regional strengths, connect production with distribution, and build stable supply chains.
More broadly, a strong domestic market is not just about boosting consumption. It gives the economy another pillar of support amid global uncertainties. When firms have a large home market, solid distribution networks and consumer trust, they are more resilient to shocks in international markets./.
