Businesses and their "position" in the domestic market.

(Baonghean) - Building a brand and developing the domestic market are crucial issues for businesses, but many businesses, especially small and medium-sized enterprises (SMEs), have not paid attention to this. This is a challenging issue in the upcoming period of deep economic integration.

In Nghe An province, one of the most trusted brands in the market is Trung Do Granite tiles. Establishing a strong brand and developing the domestic market are crucial factors for the company's survival. The Trung Do Granite tile brand was registered in 2008, and over time, the company's granite tiles and ceramic roof tiles have been highly regarded by customers for their quality.

Mr. Nguyen Ba Hoan, Director of Trung Do Joint Stock Company, shared: “Despite facing fierce competition, Trung Do Granite products have their own unique path, with diverse product lines, affordable prices, and guaranteed after-sales service, tailored to each market with specific products and policies. To date, Trung Do Granite tiles have gained a foothold in the hearts of consumers, present in many markets, from Hanoi to Ho Chi Minh City, with particularly strong growth in Nghe An and Ha Tinh provinces. We build and strengthen our brand through various channels, with a focus on the domestic market distribution system.”

Digital printed tiles - a new product from Trung Do Granite Tile Factory.

Similarly, Austdoor Nghe An Joint Stock Company is also one of the businesses that focuses on building its brand and developing the domestic market. The company recognizes that to survive and thrive, it must protect itself. Currently, Austdoor is building a consistent brand identity system nationwide, from colors to logo...

Over the years, several reputable brands have emerged in the area, known to domestic consumers, such as TH True Milk and Van Phan fish sauce. Along with brand building, these businesses are very concerned about sales, expanding, and nurturing the domestic market. However, the number of businesses focusing on developing the domestic market and building brands is far too small compared to the more than 9,000 businesses operating in the area. Many businesses neglect the domestic market; for example, some locally produced products are of low quality, have monotonous designs, and face intense competition from rivals, resulting in losses even in their own market.

Let's review some of the province's export strengths to see that the "domestic market" has not received enough attention from businesses. Textiles and garments are one example. This industry is considered one of Nghe An's strengths, with 13 garment factory projects making an impressive contribution to the province's industrial growth and export turnover to demanding markets such as the US, Europe, and Japan. In 2014, the province's textile and garment export turnover reached US$70 million, accounting for approximately 19.4% of total merchandise exports. In the first six months of 2015, textile and garment exports increased by 52.13% compared to the same period...

This is considered a breakthrough for the textile and garment industry in terms of investment in export production, bringing in foreign exchange revenue and creating jobs. However, in the local market, textile and garment products lack a foothold and face fierce competition from Chinese goods. The biggest challenge for the domestic textile and garment industry remains its heavy reliance on imported raw materials and weak design capabilities. Furthermore, the market is flooded with smuggled or illegally imported goods at low prices, making it difficult for domestic products to compete. Therefore, it is not easy to find and use textile and garment products from businesses operating in the area.

In a conversation with us, the leader of a large textile and garment company stated that due to the monotonous designs of their products, despite their long experience in the textile and garment industry, their business focuses on yarn production and exports. He also acknowledged that their garment products struggle to compete in the domestic market. Meanwhile, Ms. Hung, owner of the Son Hung ready-made clothing store in Hung Dung market (Vinh City), said that there are very few locally produced items; they used to source some, but customers didn't favor them. It must be admitted that our businesses lack research into consumer preferences and suitable designers. Most of our goods are imported from outside the province and originate from China.

For example, wood chips have consistently topped the province's export revenue for many years. Annually, people harvest approximately 518,000 cubic meters of raw wood, primarily for wood chip processing. In addition, several businesses have organized reforestation, purchasing, and processing large quantities of wood chips in other provinces for export. Nghe An only has two businesses involved in reforestation, processing, and exporting wood chips (Thanh Thanh Dat Co., Ltd. and the Joint Venture Company for Planting & Producing Paper Raw Materials), yet they bring in significant export revenue for the province annually. The increasing volume of exported wood chips has instilled confidence in the people and businesses, encouraging them to invest in the development of raw material reforestation. However, despite the high value of acacia wood chips from Nghe An by foreign importers and the abundant raw material supply, no factory in the province currently utilizes this local resource for production and processing.

While our businesses haven't paid much attention to the domestic market, foreign corporations and companies are increasing their investment in aggressively promoting their brands, creating significant competitive pressure on domestic businesses. The most obvious concern regarding competition is in agricultural products. Mr. Nguyen Van Lap, Deputy Director of the Department of Agriculture and Rural Development, stated: "In the near future, following the tariff reduction process that our country has committed to implementing when participating in free trade agreements, even the domestic market will struggle to stand firm. Supermarkets are already flooded with chicken, pork, and beef from Australia, South Korea, etc., at competitive prices. Therefore, tariff reductions could lead to an increase in the influx of high-quality, affordable imported goods into our country. Inevitably, the market share of domestic goods will face fierce competition. "Agriculture and rural areas in Nghe An province are developing in the direction of strengthening concentrated production with strong products such as seafood, vegetables, and fruit trees..."

"These products are not only for consumption within the province but also for supply to markets in other provinces in the region. Therefore, the trade sector needs to focus on developing goods distribution systems linked to specialized production areas, developing professional logistics and distribution services to support the concentration and distribution of goods, ensuring rapid consumption and enhancing the value of agricultural products," Mr. Lap shared.

In recent times, the "Vietnamese people prioritize using Vietnamese goods" campaign has created many opportunities for domestic businesses, boosting consumption of their products. However, in the long term, businesses need medium- and long-term production and business strategies aimed at maximizing the domestic market, enhancing the position and competitiveness of their goods; gradually forming large-scale, high-productivity joint ventures and production-distribution networks to deliver products to consumers in the province and beyond via the shortest route, in the shortest time, and at the lowest cost.

Thu Huyen