Business Business

15/10/2018 - 08:16

Establishing the value and consumer market of Hue products

Vietnam goods in general and local products in particular are gradually transforming into a new stage, from campaigning to “give priority” to conquering the consumers to proudly use.

However, in order to stand firm and develop in the current market mechanism, both locality’s producers and enterprises have to seek the way to innovate and upgrade the value of domestic products, establish the consumer market step by step. Talking about this issue, Mr. Nguyen Thanh, Director of Department of Industry and Trade said that:

Mr. Nguyen Thanh, Director of Department of Industry and Trade. Photo: Le Tho

Currently, the quality specialities, handicrafts and souvenirs of Hue are gradually gaining the trust of the consumers, and have a good competition with other goods in and out of the province. The distributors such as Big C, Co.opmart, Haapro, Tu Son, etc., have brought into their systems many products such as Duc Phuong royal tea, Thien Huong sesame candy, sour shrimps, salted egg-plant, shrimp paste of Tan Loc enterprise, Kim Vui eucalyptus oil, Hue beef noodle spicy, and Tam Hue food, etc.

According to you, what are the locality’s “forte” products need to be focused on developing quality, price and consumer market?

The province is focusing on evaluating the market development capacity for three groups of products: handicrafts (gifts, souvenirs); clean agriculture, agricultural products, cuisine and cultural-educational products such as Hue imperial court music, Ca Hue, etc. In the project, each commune, each ward must have at least one specific product of the locality which bears the traditional and cultural features to build up the product sets of Hue. Together with focusing on developing market, the relevant departments and local authorities are also guided to support production documents, policy mechanisms, etc., to create the favorable condition for enterprises, production establishments and cooperatives to approach.

It is evident that despite of many support mechanisms for enterprises and production establishments, our enterprises still seem to be slower than other localities. According to you, what is the reason for it?

It is true that compared to other localities, we are slower than them in mechanism, and in market movement, but not slower than them in what we have. At present, many localities have brought into market many large-scale cooperatives, new-styled and professional cooperatives. These cooperatives not only produce goods but also have close relationship with scientists to improve cultivation, intensive farming, and technique to access the outputs and approach the markets to replace the consumption phase for producers.

We have many advantages on traditional craft villages, land, etc. However, when in competition, we lack them, being inferior to many other localities.

Local products are taken into large distribution channels

So, do you mean we do not have capacity to develop the model of modern cooperatives?

Not really! At present, we have many associations such as: sesame candy, conical hat, ao dai, handicraft, etc., which have enough conditions and potentials to develop into large cooperatives specializing in producing and trading products under the management of a leadership apparatus; and other establishments become their satellites, cooperative members or subordinate organizations. Hue eucalyptus oil is the “nonpareil” product of the country and there are many cooperatives, enterprises produce eucalyptus oil. However, all of the enterprises still operate irregularly and in small scale, and there are not any cooperatives which are strong enough to lead the way in calling on and converging others.

We also have famous craft village making up ao dai, but there is not any establishment which looks alike cooperative or enterprise specializing in sewing traditional ao dai in the form of market economy, i.e. both producing, promoting, trading, ordering and pervading. etc. The Bamboo weaving of Bao La craft village, Zèng weaving in A Luoi, the craft villages of fresh noodle, shrimp paste, agricultural specialities such as onions, ném (chives), lotus seeds, etc., are the most specific, practical products with the daily life, with the people, but still cannot compete with other products.

In your opinion, how can enterprises mobilize resources and where can they do that?

The current mechanism does not stops at “protectionism” but requests the disclosure and explicitness. That is why we are weak at competition. Therefore, we are in need of potential investors - namely, core enterprises, which can know well about Hue and come to invest in Hue. In the first stage, when the enterprises are not strong enough, we will be their satellites and join hand with them - external investors, to develop material facilities, business conditions and production equipment. When the enterprises are strong enough, they can keep separate and follow their own way.

Are there any potential units aiming at Hue to invest and trade?

Of course, there have been many big enterprises investing in Hue. However, they just focus on the field of process industry. In terms of promoting investment in commerce, we have big enterprises such as commercial centers. It means that we already have commercial enterprises, but purely operating within business tourism, restaurants, hotels, resorts, retails. However, what we need is lacking - they are commercial enterprises focusing on developing products of craft villages, traditional products, the model of modern, large scale production cooperatives, etc., to create the products produced by localities, by Hue people and Hue land.

What do enterprises and local business establishments need to do to catch up with the market mechanism, even the role of management agency?

The supports on budget and mechanism are just to encourage to keep them alive. In order to develop, we need to use social capital. To have this source of capital, enterprises, cooperatives, cooperative members and local people have to introduce the products’ potentials and strength, and the market potential to call upon the investment.  Because the socialization resources are the only factor can revive the production, as well as the product brand name of Hue.

Many enterprises and producers of Hue have the psychology of satisfaction because they have not been competed or taken over yet. But for a time, if the enterprises do not innovate and develop, they definitely will be pushed back and their products will no longer bring the specific features of Hue, which are made by Hue people, by Hue crafts.

Hence, it is requested to have a combination of science, technology and scientists to innovate the production and create products, strong brand names and big markets.

Through the trips of commerce promotion, market connection, we found that Hue enterprises are still weak at propaganda, and promotion; so, Hue products still cannot be well-known. Therefore, the producers who make products have to intensify the introduction and promotion of the origin, quality and brand name of their products, and meet the need of the market to improve the competition and foothold for new products.

Thank you, Sir!

By Hoai Thuong