Businesses diversify products to enter EU market
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|Many firms believe that instant Vietnamese coffee products have often found it difficult to enter the EU market. (Photo: VOV)|
Plenty of local firms have weathered the COVID-19 crisis by selecting niche markets and diversify products to enhance their competitiveness and gain access to the EU market.
Making a difference
Many firms believe that instant Vietnamese coffee products have often found it difficult to enter the EU market in recent years due to strict control measures relating to the milk composition in instant coffee. Embarking on the strategy “making a difference”, MEET MORE has combined coffee and fresh fruits, such as coconut, mango, noni, and mint without using milk, and won EU consumers’ trust.
Nguyen Ngoc Luan, CEO of MEET MORE, said that EU consumers enjoy these products as they are made entirely from fresh Vietnamese fruit, and they all meet relevant hygiene and safety standards.
Each month, the company exports five containers of fruit coffee to Italy. An Italian company has signed an exclusive contract to purchase and distribute MEET MORE products in large quantities throughout the 27 EU member states. Luan revealed that the company will focus on expanding its production scale as rapidly as possible and exerting all-out efforts to improve product quality.
“I don't think EU consumers are changing their trends so quickly as they used Chinese products in the past. However, they have turned to Vietnam’s fresh and delicious fruits due to their high quality and fresh ingredients”, Vietnamnet quoted the CEO.
|MEET MORE has combined coffee and fresh fruits, such as coconut, mango, noni, and mint without using milk, and won EU consumers’ trust. (Photo: Meet More)|
Seeking niche markets
Along with the beverage sector, wood processing companies based in Ho Chi Minh City have also sought out niche markets in a bid to boost exports to the EU. This shift has seen Thien Minh Production, Trade and Export Co., Ltd. also gain enough export orders to the EU until the end of April 2021.
The company has successfully boosted its use of e-commerce channels and selected proper segments such as outdoor furniture in order to compete with other rivals, secure long-term orders, and expand into the market during the COVID-19 epidemic.
Tran Lam Son, director of Thien Minh Production, said the company’s bamboo and rattan products have been selling well in the demanding EU market due to their handmade elements. These products enjoy numerous competitive advantages in comparison with those from China in terms of price and the skillfulness of Vietnamese workers. He expressed hope the Government will facilitate clearing containers to assist the company to deliver their products on time, as there are empty containers at ports, Tien Phong cited.
|Despite challenges brought about by COVID-19, domestic firms have been encouraged to devise proper business strategies. (Photo: Vietnamnet)|
A positive outlook
According to the Ho Chi Minh City Business Association, there is a positive outlook ahead for export businesses operating in the wood processing and agricultural food processing sectors due to the large quantity of export orders till the end of the year.
Most notably, the wood processing sector is set to enjoy a double-digit growth rate in the remaining months of the year.
Chu Tien Dung, chairman of the HCM City Association of Enterprises, revealed that the city has accelerated digital trade promotion schemes and increased connectivity with businesses in an effort to boost exports in the near future, especially to the EU market as a way of taking full advantage of the EU-Vietnam Free Trade Agreement (EVFTA).
Despite challenges brought about by COVID-19, domestic firms have been encouraged to devise proper business strategies that focus on developing their brands and increasing exports in order to ensure robust and sustainable growth, said Tien Phong.
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