Nghe An businesses and the promising signs from supply-demand connections.

(Baonghean) - Connecting supply and demand is one of the activities that the Ministry of Industry and Trade is strengthening to promote cooperation, information exchange, and support business connections for development goals. Through this activity, many small and medium-sized enterprises have the opportunity to expand cooperation, production linkages, and product consumption. For this activity to be truly effective, it requires great effort from each enterprise.

The involvement of the Ministry of Industry and Trade

For the past three years, Hanoi, Da Nang, Ho Chi Minh City, and many other localities have enthusiastically organized numerous supply-demand connection activities. These conferences, facilitated by the provincial and city Departments of Industry and Trade, connect businesses with various activities such as information exchange, product introductions, and the signing of cooperation agreements for production and product consumption. This is also one of the important contents contributing to the effective implementation of the Domestic Market Development Project associated with the "Vietnamese People Prioritize Using Vietnamese Goods" campaign for the period 2014-2020.

The Nghe An Department of Industry and Trade has actively advised the Provincial People's Committee to issue policies and mechanisms to support businesses in the province in participating in supply-demand connection activities. In 2016 alone, the Department organized many businesses to participate in supply-demand connection activities in Hanoi, Da Nang, and Ho Chi Minh City.

Also in June 2016, the Nghe An Department of Industry and Trade connected with businesses, and the An Giang Department of Industry and Trade organized the first trade exchange between businesses of the two localities in Vinh City.

Booths at the Supply and Demand Matching Conference in Da Nang 2016. Photo: Nguyen Son

Through this activity, businesses in both localities directly exchange information and seek outlets for the distinctive products of small and medium-sized enterprises, cooperatives, and households; creating a connection between managers, producers, and distributors, thereby building appropriate strategies, orienting production, and forming a sustainable and efficient production-supply chain.

With the success of this event, the Nghe An Department of Industry and Trade aims to organize at least one trade exchange event annually with provinces and cities nationwide to create opportunities for local businesses to expand trade and connect to develop production and business.

According to Ms. Vo Thi An, Deputy Director of the Department of Industry and Trade, in such activities, the Department of Industry and Trade plays a bridging role by inviting businesses from within and outside the province to participate in connecting supply and demand.

But the effectiveness of these agreements depends entirely on the negotiating and cooperation skills of the businesses involved.

A great effort from businesses is needed.

Mr. Vo Van Dai, Director of Van Phan Seafood Joint Stock Company, is the most active in connecting supply and demand among small and medium-sized enterprise leaders in Nghe An province. He participates in almost all business conferences and trade fairs in the northern provinces to introduce his products and sign agreements to expand production and supply cooperation.

To save costs on each trip, he acts as both the director working with partners and the transporter, product presenter, and market researcher. According to Mr. Dai, each trip costs the business at least 10 million VND, including 5-7 million VND for booth rentals in various provinces, in addition to travel and accommodation expenses.

Many products from businesses in Nghe An province attract interest from businesses outside the province. Photo: Nguyen Son

Due to the specific characteristics of small and medium-sized enterprises (SMEs) in Nghe An, the scale of production is not large, mainly consisting of family-owned businesses, and the products are still heavily localized, serving only the province, or the production is limited and seasonal. Therefore, not many businesses have boldly participated in supply-demand connection activities outside the province.

Mr. Nguyen Van Son is the director of a business in Vinh City specializing in the production of turmeric starch. His company consists of only him, his wife, and two nephews, and the turmeric supply is seasonal, so the business's output is not yet large.

To save costs, he often chooses supply-demand matching trips facilitated by the Ministry of Industry and Trade, where booth rental fees are waived. Mr. Son explained: “My production is small-scale and seasonal; sometimes I don't have enough products to fulfill orders from customers, so I haven't been able to aggressively promote my products to other provinces and cities. Besides, the costs of supply-demand matching activities and trade fairs in other provinces are also expensive…”

According to Ms. Vo Thi An, Deputy Director of the Department of Industry and Trade, the majority of small and medium-sized enterprises in our province are primarily engaged in production for consumption within the province. Furthermore, many traditional local products such as soy sauce, fish sauce, and fermented bamboo shoots have not been strongly promoted, so their target consumers outside the province are mainly people from Nghe An living far from home.

In recent years, a positive sign is that many people from other provinces have prioritized using products from Nghe An. This is an opportunity, but it requires businesses to constantly improve production processes, innovate product designs, enhance quality, and improve long-term product preservation methods.

Furthermore, organizing more specialized supply-demand matching activities in each production and business sector will contribute to building an information system and database to serve businesses in the province and nationwide in linking production and product distribution...

Nguyen Son