Increasing the presence of Vietnamese brands in the EU market

The Free Trade Agreement between Vietnam and the European Union (EVFTA) officially took effect on August 1, 2020. After more than two years of implementation, the EVFTA has brought sweet fruit to Vietnam’s exports.

However, the number of Vietnamese branded goods exported to the EU market is still quite modest. In particular, Vietnamese enterprises still miss many opportunities and have not taken full advantage of the EVFTA “high-speed” when many Vietnamese products imported into the EU market carry the national brand name. other family. Businesses need to understand that bringing Vietnamese goods to the world with Vietnamese brands and selling to local people is a sustainable export process that we need to aim for.

Vietnamese goods account for less than 2% of the EU market share

The EVFTA has become an important aid to promote the continuous growth of two-way trade between Vietnam and the EU, even during the Covid-19 pandemic. Total export turnover from Vietnam to the EU from August 2020 to July 2022 reached 83.4 billion USD (average 41.7 billion USD/year), 24% higher than the average export turnover in the five periods. period 2016-2019. The EU has become the leading trading partner and also the third largest export market of Vietnam. However, it is worth noting that the potential to exploit this market is still very large, when Vietnamese goods only account for less than 2% of the EU market share, while this is a market with huge purchasing power. with an import value of up to 2.5 trillion USD of goods per year.

Assessing the current situation and potential of the EU market, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department, Ministry of Industry and Trade said that the EU is a market with high purchasing power and great potential. . However, the number of Vietnamese enterprises participating in exporting to this market is not commensurate with the potential… Referring to the reason, Mr. Ngo Chung Khanh said that, due to the European mindset, even in the process negotiation or in the implementation process have a characteristic that they are not only interested in price and quality but also in how the product is made; How enterprises treat employees, the environment, and society. This is a feature that many Vietnamese enterprises know, but not all enterprises are ready to prepare.

Looking at it from another angle, many people think that the reason why the competitiveness of Vietnamese goods in the European market has not been clearly shown is because businesses are not aware of the importance of brand development in the market. export. Businesses often focus on increasing productivity and product quality, and awareness of the role of brand development is often not properly cared for. Vietnam is famous for its export market share of rice, coffee, textiles… among the top in the world, but these goods are imported into the EU under the brand name of another country. Taking the example of coffee products, Ms. Dao Thu Trang, Head of Market Development Strategy Consulting, German Chamber of Industry and Commerce in Vietnam also admitted, few Germans know that Vietnam is a country. The largest coffee exporter in the world and the coffee packages they use every day are mostly exported raw from Vietnam.

Raise awareness in brand development

Exporting under the brand name of other national enterprises will reduce the added value of Vietnamese goods, as well as the competitiveness of goods will not be improved. Therefore, in addition to ensuring quality and meeting product safety standards and regulations, Vietnamese businesses need to change their thinking to have a methodical market development strategy. such as marketing and communication. Ms. Nguyen Thi Thu Thuy, Deputy Director of the Export Support Center, Trade Promotion Department, Ministry of Industry and Trade, said that the opportunity for Vietnamese enterprises to enter the EU market is very large, especially when approaching a market with high potentials. With high standards, enterprises also have the ability to improve product quality and competitiveness. However, according to Ms. Thuy, building a brand in the EU market is not an easy task. Enterprises need to take very methodical steps and wise strategies to be able to bring their own brands into the market. The EU is a market with very strict requirements and regulations, very high standards in terms of quality, environment, society, labor… In particular, goods need to be identical in quality between different countries. The new shipment retains the reputation of the enterprise with its import partner in the EU. “In order to develop a brand with the EU market, the first very important point is that Vietnamese businesses need to study carefully about the market, understand the culture, trends and usage needs of the EU market. See how that market has needs, what are the requirements to produce the products that the EU market needs, not sell the products we have, “said Nguyen Thi Thu Thuy.

Sharing the factors businesses need when they want to build a brand in the EU market, Mr. Vu Anh Son, in charge of the Vietnam Trade Office in France, said that, first of all, it is imperative and indispensable to meet all standards and requirements. market demand. In addition, businesses need to go through consultants and export consulting units. On the other hand, branding must also follow specific industries, in the immediate future are the strong industries of Vietnam that can now be exploited such as agricultural products: cashew nuts, pepper, rice, coffee get high…

Building a brand for Vietnamese agricultural products is always a big dream of many businesses to sustainably develop the country’s agriculture. Looking at the long way to bring Vietnamese fruit to the world market, General Director Ngo Tuong Vy (Chanh Thu Fruit Import-Export Group Joint Stock Company, Ben Tre province) said: “In 2009, when Business with China is still progressing, the Company has simultaneously opened the direction to promote product brand development to other difficult markets. The most difficult for enterprises is the technical barriers related to quality standards, food hygiene and safety, social certification, environmental certification, etc. After that, exporting enterprises need to ensure maintenance. Maintaining certification and fulfilling commitments with import partners Investing in branding is the right decision, but you have to be patient and ignore immediate profits before businesses can successfully build. It is worth this methodical investment that the Company can export fruit to many high-quality markets to both increase the selling price and affirm the prestige of Vietnamese fruit. t Nam. After 20 years of operation in the field of exporting fresh and frozen fruits, the Company has promoted exports to the US, Japan, Australia, EU, China, and South Korea markets.