Vietnamese food processors have decided to make heavier investment in production in order to cement their positions on the domestic market.
Hong Phu spent 25 million dollars to build a factory that makes fish sauce with a modern technology capable to put out 90 million liters per annum. And now is the time for Hong Phu to expand the market. It plans to organize the campaigns on bringing goods to rural areas to introduce directly to consumers, which would be followed by the establishment of sales agents in the localities.
“I believe that this is the right way to develop the sale network and satisfy the customers’ demand,” Nam said.
Saigon Food still plans to increase the sales, even though it has been warned that the demand in 2012 would be even lower than that of the last year.
Le Thi Thanh Lam, Deputy General Director of the company, said that the purchasing power in 2012 is not likely to increase, as the laborers’ incomes do not change. Therefore, Saigon Food plans to develop new products which fit the consumers’ pockets. Besides, it strives to expand the market by targeting restaurants, hotels and cafés.
Saigon Food is considering distributing goods through small food shops where they set up refrigerators instead of selling goods only at supermarkets.
A businessman, who asked to be not named, has said that he plans to set up a supermarket that specializes in providing Vietnamese rice products, both wholesale and retail. He has estimated that by the end of 2011, the market had had 100 different rice brands. Therefore, his supermarket would help consumers buy high quality rice at reasonable prices; while it would help rice producers sell products for better prices.
Analysts have noted that Vietnamese goods have become the bigger choice of Vietnamese consumers recently. Up to 80 percent of products on the shelves of Co-opmart, Maximark, Big C or Citimart are Vietnam made products, while 98 percent of processed foods are made in Vietnam.
Bibica, a sweets company, said that it has completed the survey on the taste and the consumption psychology, a necessary step it needs to do when drawing up the business plan for the high-inflation period.
According to Phan Van Thien, Deputy General Director of Bibica, there are two different groups of consumers. High income earners would spend money on high grade products, no matter how high the prices are. Meanwhile, low income earners would consider the products very carefully before buying, from the design to the quality.
“The analyst has led to our decision to spend 200 billion dong in 2012 to design new products which can satisfy both the groups of consumers,” he said.
After increasing the capacity by two folds to make 150 tons of jam products, Pham Ngoc Thuy, the owner of Thanh Long workshop, said that she is considering spending money on a production line that makes dried sugar-soaked fruits.
“Vietnamese consumers and distributors are choosing made in Vietnam products. This should be seen as a great opportunity which must not be missed out,” Thuy said. “If we still keep hesitating, we would feel regret later.”
Hoang Thi Tam Ai, Director of Tri Duc Food Company, said that the company has spent billions of dong more to set up a factory in Cu Chi district which would process food from fruits and vegetables to make soft drinks or materials for daily meals. The factory is expected to become operational from mid 2012, raising the production capacity of the company by two folds.