Many overseas Vietnamese business representatives gave opinions on how to help Vietnamese goods penetrate international markets, especially the EU.

Local businesses are facing obstacles in securing a firm foothold in foreign markets, therefore they should focus on increasing their competitiveness to meet the market demands requirements and international standards.

Pham Ngoc Chu, Chairman of the Vietnamese Business Association in Hungary, talked about measures to help made-in-Vietnam products access the EU market in an interview granted to a VOV reporter.

Reporter: Could you tell us about the difficulties facing Vietnamese goods in the European market?

Mr Chu: I am operating in the European retail sector where few overseas Vietnamese are involved. We have opportunities to meet European customers and gain an understanding of their tastes and lifestyles. It is a fact that, despite their good quality, Vietnamese goods encounter many obstacles when they try to enter the EU market.

Vietnam already exports a large volume of coffee and rice to the global market. In our supermarket network, we have various kinds of Vietnamese foodstuffs on the shelves that are bestsellers including instant noodles, rice and coffee. However, the competitiveness of these products is still weak, even though they are good quality and inexpensive.

Many of our customers prefer rice from Thailand, China and Turkey rather than the same product from Vietnam. I think the core issue here is the packaging design and marketing.

Furthermore, Vietnamese coffee, including famous brand “Trung Nguyen” (Central Highlands) G7, also fails to compete against other rivals. Coffee from other countries is gradually dominating the EU market thanks to their packaging

Reporter: Vietnam is not strong in advertising and design. What should local businesses to improve this situation?

Mr. Chu: I am now Deputy Chairman of the Vietnam-Hungary Joint Committee for Economic Cooperation under the Budapest Chamber of Commerce and Industry (BCCI).

Recently, I was assigned by the Vietnamese embassy to hold a number of seminars and invite Vietnamese businesses to Hungary to learn about the tastes of European consumers to help them with their marketing.

There is a perception that European consumers are very picky but that is not really true. I just think that Vietnamese businesses do not know how to promote their goods.

I visited some Vietnamese furniture stores and found that, although the wooden products are meticulously carved, they did not sell well in Europe. The weather there is very cold in the winter and these products should have cushions. Vietnamese businesses should focus on the most popular goods, such as stools and chairs for the dining table.

Exporters should offer products that are suitable for the European market. Vietnamese goods have a rich style but they do not match the European lifestyle. For example there are many kinds of flower vases, rice bowls and tea cups in Vietnamese pottery shops but Europeans usually drink tea in bigger cups and eat off of large plates. Therefore, producers should make different types of goods for the European market.

Reporter: Do you have any recommendations for Vietnamese businesses so their products can penetrate the European market better, especially in retail chains?

Mr. Chu: Vietnamese businesses often want to make a quick profit when they sell their products. This is different from the way the Chinese and other exporters operate; they first introduce their first products into a new market to gain an understanding of that market.

Instead of working through wholesalers and retailers, Vietnamese businesses should sell their goods directly to customers themselves. This will help them learn more about the market and prevent their brands from being violated by other producers.

Reporter: As you may know, the brands of two popular Vietnamese products, namely Buon Me Thuot coffee and Phu Quoc fish sauce, have been violated. In your opinion, how should domestic businesses invest in their trademarks?

They should be constantly investing in their trademarks. For example, an instant noodle producer should offer an assorted 10-pack of noodle flavours for Europeans instead of offering only one flavour for many years. Vietnamese businesses do not care about protecting their trademarks in the long term and they only act if their trademarks have already been stolen. This is their main weakness.

They are willing to reduce the prices of their products to sell more goods but are reluctant to invest 5-10 percent of their capital for their brand names. This creates many disadvantages for Vietnamese businesses when they are trying to create a unique image.

Reporter: Thank you very much.