An outlook for International trading and introducing SMEs products to the Vietnamese market
Vietnam, thanks to its recent economic ascents, is becoming a new haven for many international manufacturers. With the EVFTA approved and set in motion, trading opportunities with Vietnamese partners are open for more European manufacturers. And this is not only the playground for big players. The market has witnessed multiple smaller entrants making their way into the South East Asian countries.
However, with relatively finite resources, many small and medium manufacturers find it challenging to transcend the geographic and cultural differences and directly connect Vietnamese buyers. The risks incurred are so much that they stack up hesitance, despite ongoing efforts to increase cross-border connection from the Vietnamese Ministry of Commerce in collaboration with corresponding European partner countries.
As a result, the traditional practice of selling to exporters and importers continues to prevail. Thanks to this, many companies may reduce the financial risk they have to bear while sending their products across the globe.
However, in the long term, this current practice may cause more harm than good. Selling through multiple layers of intermediaries subsequently ramps up the price of products, making them less accessible to the end consumers and lowering their profit margins. Moreover, the output is not guaranteed, as manufacturers have to rely solely on their first layer partners, without any insights into the distribution and the market.
A question then emerges, what will the future look like for international trading to Vietnam as a small and medium manufacturer?
The new trend in International Trading.
Right now, the world is seeing a new trend in the modern world of international commerce. The modern supply chain needs to be and will be shorter, more efficient to create more profit and shorten the time from the factory to the door of the consumers. Factories want to engage directly with consumers to evolve their products, which better matches customers’ needs. Simultaneously, consumers want to have their goods faster with more value. Especially in the case of the FMCG sector, it’s getting even more rapidly. From Fast Moving Consumer Goods, people are now expecting Faster Moving Consumer Goods. The traditional system of intermediary won’t function properly and effectively in this new age. Instead, the ability to sell directly will significantly benefit all the parties.
So how manufacturers who want to expand their reputation to the Vietnamese market adapt to this new trend? This is a question that a commercial representative can help you and other manufacturers answer.
The role of Commercial Representative in the new age.
Instead of buying and reselling products through multiple parties, a commercial representative will connect manufacturers and buyers and facilitate a direct trade relation between parties. A commercial representative acts as internal personnel for manufacturers, answering inquiries related to the products. Simultaneously, the representative also acts on behalf of the buyers, providing manufacturers with the latest updates about the market and distribution.
Working with a commercial representative will help manufacturers maintain the benefits of direct sales, as mentioned above. At the same time, they can enjoy the advantages of indirect sales, like access to the distribution network, higher market coverage while exposing them to relatively lower risk than direct selling.
Bring your products to Vietnam and Think BIGGER with VIEC.
As a commercial representative connecting European manufacturers with buyers in Vietnam, and vice versa, VIEC makes entry to the Vietnamese market possible for you and other small and medium EU manufacturers.
VIEC is committed to helping you overcome the competition and challenges that a new entrant faces in a new market. Unlike big corporations who are more comfortable with ample resources, SMEs need to be more considerate with theirs when plotting a move. This significantly impedes their advancement into the new market. At VIEC, we dedicate ourselves to supporting you, as a manufacturer, coast through these statural challenges when entering the Vietnamese market with more affordable yet high-quality services.
Furthermore, with our extensive network of partners, we help set up your distribution system in Vietnam and guarantee a steady outflow for your product in the Vietnamese market. Setting up a solid footing for you in Vietnam will be amongst our top focuses.
Last but not least, VIEC provides your brands and products more sustainable development prospects. As we mentioned earlier, by connecting you to retailers directly without importers and exporters, we can mitigate the disadvantages of indirect selling for you. Better yet, your growth is not only bound to Vietnam but can scale up your reputation and product coverage to the regional scale. Vietnam can offer a landing ground and outlet for your products in the whole of Southeast Asia and adjacent regions, making your future operations more cost-efficient and less cumbersome.
With our extensive experience bringing EU products like Swinkels Family Brewers’ B52 energy drink, Lander Brau beer brand, and EU confectionery products into Vietnam, you can expect us to replicate the same results with your products.
Looking forward to entering the Vietnamese market with your products? Contact VIEC, and we will arrange initial meetings with you, where we provide you essential information about the potential of bringing your products into Vietnam and how we can do that. Our consultancy hours are entirely FREE OF CHARGE.
Have any inquiries? Reach us through WhatsApp: +31642049998 OR Directly HERE
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