Vietnam’s prowess in agriculture and food processing has allowed it to export its products to over 180 countries and territories. Its abundant supply of raw materials is the foundation of this success.
The PAN Group’s booth with its own products draws attention at Foodex Japan 2023
Vietnamese businesses have taken a more proactive approach to investing in technology, enhancing product quality, and promoting trade.
The Ministry of Agriculture and Rural Development has reported that in the first two months of this year, the total import-export turnover of agricultural, forestry, and fishery products was valued at $11.99 billion.
Of this amount, $6.28 billion came from exports. Japan was the third-largest market for Vietnam's agricultural, forestry, and fishery products, with an export value of $563 million, representing 9 per cent of total exports, behind China and the US.
With abundant raw materials, Vietnam's agricultural products and processed foods are now presented in more than 180 countries and territories. Many items have reached the export value of 'billions of US dollars', even 'tens of billions of dollars', contributing to the country's annual export turnover.
Vietnamese enterprises have actively sought new markets and official export policies to achieve the results. The local enterprises expect that the export of agricultural products this year will achieve a growth rate of about 20 per cent compared to last year.
Seeking opportunities
Although Vietnam has achieved positive results with many top agricultural export products globally, there is still a lot of work for the country in building a brand name for agricultural products.
Mr Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, said that it is difficult to build a brand, partly because Vietnamese agricultural products are still exported in raw materials with low processed content.
This leads to a big difference between export prices and consumer prices. Therefore, Vietnamese products need to build a foothold in the market, which requires methodical investment. Local businesses would sell not only goods but also sell branded goods.
The 48th International Food and Beverage Fair (Foodex Japan 2023), taking place in Tokyo (Japan) from March 7-10, 2023, has the participation of nearly 40 Vietnamese businesses with many big names in the agricultural and food industries, such as PAN Group, Vinamilk, and Hữu Nghị.
A representative of PAN Group said that with a diverse product portfolio and a focus on the high-quality segment, the group has not only targeted a few markets but has brought its products to more than 40 countries and territories.
PAN's pangasius, clams, shrimp or mixed vegetables, confectionery, dried fruit, rice, and fish sauce are all exported to demanding markets such as Japan, the EU, the US, Canada and South Korea.
With member companies leading in the agricultural industry, PAN's products are selling well in the Japanese market. In particular, these are not raw products but are deeply processed ones under the group's brand name.
Even with the confectionery segment, which is not considered Việt Nam's strength in high-end markets, PAN said that Japan had been a traditional market for its member company, Bibica more than ten years.
Bibica entered the Japanese market by supplying processed goods for a domestic Japanese brand. Bibica now exports its branded products and has a foothold in this market.
A Japanese customer is keen on Bibica’s products
To have a sustainable foothold in the international market, in addition to meeting the quality standards of the exporting country, Vietnamese brands also need to pay special attention to increasing the added value to products, increasing processed content, minimising export of raw materials, and finally investing in developing own brand.
