Japanese, Thai goods reach every corner of Vietnamese market
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Several years ago, fans of Thai and Japanese goods had only several choices – either buying the products carried across border gates, or going to a few select shops. But now, they can freely choose products at many specialized stores. Specialized shops are mushrooming
A report from MOIT (Ministry of Industry and Trade) shows that the deficit in trade with Thailand in the first eight months of the year reached $3.5 billion.
Thai products are available at 9,000 traditional markets, supermarkets and home appliance distribution centers. In large cities, Thai goods account for 30-50 percent of the market share.
The others are run by world giants such as Lotte, Aeon and Emart. Metro alone has 19 retail points, while Big C has 32.There are about 100 retail points belonging to foreign invested supermarkets in Vietnam, half of which belong to Thai investors.
Meanwhile, Japanese have been penetrating deep into Vietnam through big retail chains such as Aeon, Ministop, Family Mart, Tokyo Deli, Gyu Kaku, Oshaka Ohsho and 7-Eleven.
The Sakura chain has opened 10 shops after six years in Vietnam, while Tokyo Life has 18 shops in Hanoi, two in HCMC and 35 in other provinces.
Pham Chi Lan, a renowned economist, said Thai firms had been following a strategy to enter the Vietnamese market for a long time.
Thai businesses understand that Vietnam, with high economic growth rate, young population and increasingly high consumption, will be a vast market once tariff barriers are removed.
They have spent time studying Vietnamese consumer psychology and followed professional methods to win over customers.
“The Sakura chain has opened 10 shops after six years in Vietnam, while Tokyo Life has 18 shops in Hanoi, two in HCMC and 35 in other provinces.”
Vietnam imports a wide range of products from Thailand, from household electrical appliances to vegetable and fruits, and CBU cars and cosmetics.
Vietnam also imports products which are locally made, such as household-use products, computers and plastics.
Minister of Industry and Trade Tran Tuan Anh once asked why Thais could bring their products to the Vietnamese market but do not do this with other ASEAN countries, including Indonesia and the Philippines.
Analysts believe the most important reason is the large distribution networks that Thais have set up in Vietnam.
Thai corporations like Central Group and TCC Group have spent big money to take over the largest distribution chains in Vietnam, paving the way for Thai products to enter Vietnam.
Meanwhile, a branding expert commented that Thai and Japanese goods can thrive in Vietnam because manufacturers receive support from their government agencies.
“Japanese agencies have set up dedicated divisions to support small and medium enterprises in their country,” he said.
Questions & Answers
Q.What is the primary reason analysts believe Thai products have successfully penetrated the Vietnamese market?
What is the primary reason analysts believe Thai products have successfully penetrated the Vietnamese market?
Analysts believe the large distribution networks established by Thai businesses in Vietnam are the most important reason for their market penetration. Thai corporations have invested significantly to acquire major distribution chains, facilitating product entry.
Q.Which foreign-invested supermarkets mentioned in the article are major players in the Vietnamese retail sector?
Which foreign-invested supermarkets mentioned in the article are major players in the Vietnamese retail sector?
World giants Lotte, Aeon, and Emart are prominent foreign-invested supermarkets in Vietnam. Also, Metro has 19 retail points and Big C operates 32, with half of all foreign retail points belonging to Thai investors.
Q.Why do Thai businesses view Vietnam as a valuable market, according to economist Pham Chi Lan?
Why do Thai businesses view Vietnam as a valuable market, according to economist Pham Chi Lan?
Economist Pham Chi Lan stated that Thai businesses see Vietnam as a vast market due to its high economic growth, young population, and increasing consumption. They anticipate its potential once tariff barriers are removed.
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