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Will Vietnamese goods be ousted by Thai products?

Experts have calmed the public down amid the worry that Thai retailers would dislodge Vietnamese goods from supermarkets, saying Vietnamese goods can stay in supermarkets if the quality and prices are good.

VietNamNet Bridge - Experts have calmed the public down amid the worry that Thai retailers would dislodge Vietnamese goods from supermarkets, saying Vietnamese goods can stay in supermarkets if the quality and prices are good.

 

 

The massive arrivals of Thai retail chains in Vietnam have raised concerns that Vietnamese goods would be replaced by Thai goods.

Vu Kim Hanh, chair of the Business Association for Vietnamese High-quality Goods, commented that competition with Thai goods will be very stiff. 

Local newspapers quoted the representatives of some companies which supply goods to Metro as saying that the volume of goods entering the supermarket chain have decreased after it was transferred to the Thai investor. A fish sauce company said its supply to Metro has reduced by 70-80 percent.

The representatives warned that once Thai control the distribution network, they will prioritize to distribute Thai goods. If so, Vietnamese manufacturers could be seriously affected. 
However, experts affirmed that the position of Vietnamese goods in the market will depend on the quality of Vietnamese goods, not on retailers. 

The low competitiveness of Vietnamese goods partially explains why Chinese goods  have been flooding the Vietnamese market, though Chinese do not run large retail chains in Vietnam.

Mai Huu Tin, a National Assembly’s Deputy, said at the National Assembly’s session on June 8, 2015 that in 2014, over $20 billion worth of Chinese goods penetrated into Vietnam without recognition by Vietnamese agencies. This means that the goods did not bear tax and technical barriers.

An analyst, citing statistics, noted that Vietnamese traditional retailers still control the domestic market. He implied that more Thai goods have been available in Vietnam, though the retail chain is still controlled by Vietnamese.

Statista, a German market survey firm, modern retail channels just account for 25 percent of the market share. This means that 75 percent of goods are distributed by traditional markets.

Vietnamese have been told not to be too pessimistic about the competitiveness of Vietnamese goods and Vietnamese retailers.

The owner of a grocery in Cau Giay district said the Thai products favored in Vietnam are mostly cosmetics, while Thai food is less favored than Vietnamese. She confirmed that Vietnamese plastic products sell better than Thai.

Meanwhile, Diep Dung, chair Saigon Co-op, the largest supermarket chain in Vietnam, affirmed that Vietnamese retailers have their competitive edges which allow them to compete well with foreigners.

 

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