Gepubliceerd op 20 september 2022

Vietnamese agricultural products have not had a brand name in the EU yet

Vietnamese Economic News - Despite being the top exporting country of agricultural products, Vietnam's products have not been recognized and branded in the EU market.

Small market share

Sharing about this situation, Ms. Nguyen Thi Hong Minh - Chairwoman of the Association of Food Transparency (AFT), said:
Vietnam is currently the world's second-largest coffee exporter and
fifth-largest seafood exporter, etc. According to data from the EU Statistical Office, in the first four months of 2022, the EU spent 40 billion euros importing agricultural products and vegetables. Vietnam only accounted for 0.1% of the market share. The market share of Vietnamese agricultural products is still small, which means domestic enterprises have not fully taken advantage of the EU-Vietnam Free Trade Agreement (EVFTA).

This webinar is jointly organized by The USAID Linkages for Small and Medium Enterprises (USAID LinkSME), The Dutch Business Association Vietnam (DBAV), and the Association of Food Transparency (AFT) and is one of the activities of the “Netherlands - Vietnam Agro & Food-Processing business matchmaking” event which provides market information and guidance, and advice to do business in the Netherlands/ Europe. Ms. Nga Dang - Director/Founder of AB Consult, Co-founder of Miss Linh, and Board Member of DBAV-NVCC, pointed out a fact: In supermarkets in the Netherlands, even in the EU, there is almost no presence of Vietnamese branded agricultural products. "The reason is, Vietnam mainly exports raw agricultural products, importers use them as mixing materials, so there is no name or brand on the package," said Ms. Nga Dang.

Mr. Hien Pham - Director of LTP Import & Export said “In the Dutch market, some businesses import ST24 and ST25 rice from Vietnam, but when sold to the market, they are mixed with 50% other types of rice. This not only worsens the Vietnamese rice brand but also makes it difficult for Vietnamese enterprises to export rice to the EU in the future, due to the impression of quality and difficulty in price competition.”

How to get a higher position in Dutch Market and EU Market?

In the EU market, in terms of position on the supply chain, Ms. Nga Dang said that Vietnamese agricultural products are in the lowest position, which means that the value received by producers is deficient. So how do Vietnamese agricultural products rise to a higher position?

From the practical experience of working for more than 20 years in international trade, according to Ms. Nga Dang, Vietnam needs to build a strong enough brand of agricultural products. It is challenging for a business to develop its own brand in the market, especially in a highly competitive market like the EU. Therefore, many companies in the same field can link together to build a common brand.

Particularly for the Dutch market, a member of the Board of Directors of DBAV-NVCC in the Netherlands said: It is advisable to sell products with the company's own name so that the product and business brand can be closer to customers. Selling in this market is relatively easy and does not require a branch, representative office, or legal status. Vietnamese enterprises have registered with Dutch authorities and pay value-added tax, put goods on the market, rent warehouses and then deliver goods to customers.

“Miss Linh is a separate e-commerce platform for Vietnamese goods that can help businesses take care of all procedures to be able to conduct sales in the Netherlands and EU with the business's main name. This is also a good channel that businesses can access and use," said Ms. Nga Dang.

By Viet Nga

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