Vietnamese Farm Produce Makes Strong Inroads into Malaysian Markets
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Vietnamese goods, especially farm produce, are expanding their presence in retail chains and supermarkets across Malaysia, including well-known ones, reflecting growing consumer preference for Vietnamese products, according to Trade Counsellor of Vietnam in Malaysia Le Phu Cuong.
Vietnam's key exports to Malaysia include rice, fruits and vegetables, aquatic products, coffee and pepper. |
This also demonstrates that Vietnamese goods have successfully carved a niche in the Malaysian market, which boasts a rich diversity of culture, religions, and cuisine. According to the official, Malaysia imports a significant amount of rice due to unfavorable conditions for cultivation.
Statistics from the General Department of Vietnam Customs show that bilateral trade hit US $11.8 billion in the first 10 months of 2024, with Vietnam's exports amounting to US $4.2 billion, a slight increase compared to the same period in 2023. Notably, rice exports to Malaysia recorded impressive growth of 9.4%, bringing in nearly US $400 million.
Vietnam also ships other agricultural products to the Malaysian market such as coffee, cashew nut, dragon fruit, chili, and lime. Many distinctive products from Vietnam, including rice, coffee, rice paper, noodles, dried vermicelli, as well as various herb vegetables and spices, are now available in long-established supermarket chains in Malaysia such as NKS and Jaya Grocer.
Trade Counsellor of Vietnam in Malaysia Le Phu Cuong said Malaysia's demand for food imports remains high while Vietnam is capable of meeting this demand but faces intense competition from other countries. Therefore, it is necessary to strongly invest in and implement trade promotion measures to introduce Vietnamese goods to more Malaysian consumers.
The Vietnam Trade Office in Malaysia has carried out many activities to support businesses, especially updating Vietnamese agencies, localities, associations, and businesses trading with Malaysia on this market's trade policies.
Vietnamese Commercial Counsellor in Malaysia Le Phu Cuong (third from right) meets representatives of Vietnamese businesses at the Selangor International Business Summit (SBIS) 2024 in Kuala Lumpur. (Photo: VNA/VNS) |
It has also enhanced connections with the Malaysian business community and Vietnamese firms operating there to seek and introduce trade partners to enterprises in the homeland. Besides, it has supported Vietnamese companies to connect with potential customers and make inroads into the Malaysian market.
According to experts, Malaysia's market has strong purchasing power and diverse demand and shares similarities in consumer culture with Vietnam. They also highlighted its relatively low barriers for Vietnamese exports as both countries are members of several regional trade liberalization agreements.
Apart from the fierce competition in the open market, they said food products are required to obtain Halal certification, which is not recognized by Vietnamese State agencies but in certain Muslim countries. Currently, only one non-governmental organization in Vietnam is authorized to issue the Halal certificate and is recognized by the Department of Islamic Development Malaysia.
The counselor predicted that the two-way trade is able to hit US $18 billion in 2025, driven by Malaysia's bright economic outlook and the possibility of Vietnam's improved exports to Malaysia in the coming time.
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