Vietnamese try to conquer “hard-to-deal-with” far markets

After succeeding in some big markets, big Vietnamese economic groups have begun undergoing challenges to conquer far and hard-do-deal-with markets such as Africa, or the Middle East.
Besides the EU market, the Middle East has become the target market of the Vinamilk, a dairy producer. After one year of interruption due to political uncertainties, Vinamilk returned to the Middle East in 2004 after it won a big to provide 15,000 tons of milk powder for children worth 51 million dollars.

Mai Kieu Lien, President and General Director of Vinamilk, said that in fact, Vinamilk exported its first products to the Middle East in 1997 already. The successful returning of Vinamilk to the market shows the firm position of the company here. Currently, Vinamilk is exporting 1-2 million dollars a year worth of products to the US and Australia under its own brand.

According to Lien, instead of confrontation, Vinamilk has decided to join forces with foreign partners to take their full advantages for the development. It is obvious that foreign partners have large distribution networks worldwide, and follow global marketing campaigns.

Currently, exports bring 130 million dollars a year to Vinamilk. The Middle East, Cambodia, the Philippines and Australia remain the main export markets.

That explains why Vinamilk’s shares still keep valuable in the context of the stock price sharp decreases. The good business performance of Vinamilk makes people think that it is a “goose that lays golden eggs”.

The Middle East is also the “aiming point” of a lot of Vietnamese seafood and agricultural companies. Saudi Arabia, Egypt and the UAE are the biggest food importers from Vietnam in 2010-2011, according to a report which has been released by the Vietnam Association of Seafood Exporters and Producers VASEP.

The report shows that frozen tra fish remain the export strategic export items to the market which have seen the 10 percent increase in export volume and 24 percent in export value. Besides, frozen shrimp and canned tuna have also been favored by the market. The profuse supply, stable prices and low cholesterol level all help increase the exports to the market.

Meanwhile, Vietnamese telecom companies have been striving to reach out to far market, considering this the way out in the context of the domestic saturated market. After conquering the neighboring Laos and Cambodia, FPT and Viettel are marching towards further, poor and difficult markets – Africa.

Most recently, FPT and the Nigerian 21st Century Company signed a MOU on the strategic cooperation in telecommunication, education and equipment production. Prior to that, Viettel got the investment license in Mozambique after it put the mobile network in Haiti into operation.

When asked why companies target these far and hard markets, Viettel and FPT said that the easy and near markets have no more room for new comers any more. Meanwhile, reaching out to foreign markets proves to be the only way they need to follow, as the domestic market has become cramped.

“We have returned from a 2-week business trip from Nigeria and we have decided to join the hi-tech product retail sector in the market,” said Nguyen Quang Minh, Managing Director of FPT Trading Hanoi.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam’s outward investment has been increasing stably year after year. Vietnam now has 600 valid outward investment projects with the total registered capital of 10 billion dollars.

In related news, when predicting Vietnam’s export in 2012, experts have said that though the Eurozone’s crisis would impact developing economies, Vietnam’s exports would still keep stable growth.

Source: VnExpress

Tags: Vietnam exports, Vietnam exports 2011, Vietnam trade