Domestic products show signs of market "flooding"

Hanoi (VNA)- With reasonable prices and the Government's 1 billion USD promotion
fund, domestic products have been making up between 90-95 percent of supermarkets'
goods as the biggest shopping season of the year approaches.

Grasping opportunities to increase market shares

Locally-made food products and consumer goods are favorites of the Tet market,
said Deputy Director of the Hanoi Service of Industry and Trade Nguyen Thi Nhu
Mai.

The municipal Commercial Corporation and six trade joint-stock companies have been
spending over 1 trillion VND in buying essential products ready for sale at Tet,
focusing on foods and foodstuffs, especially fresh foods, drinks and candies, she
said.

The Hanoi Food Import-Export Joint-stock Company has prepared 500 tonnes of paddy
rice, and the Hanoi Brewage Corporation is launching into market 71 million litres
of beer and wines.

The Hanoi Trade Corporation (Haprosimex) has prepared almost 600 billion VND worth
of goods for Tet, doubling last year's figure.

External Relations Director of the Ho Chi Minh City Big C Supermarket, Duong Quynh
Trang said that of the total 50,000 items available at her supermarket, domestic
products dominate at a rate of 95 percent, five percent more than the volume
early last year.

At the Metro Cash & Carry system, locally-made products also make up over 90
percent, notably foods and foodstuffs. The Coop Mart supermarket chain has also
reported a plan to increase five percent of domestic products.

Competitive quality and prices
Home-made products have taken a firm foothold in the domestic market with massive
sales attributed to improved quality and reasonable prices.

Hanoi Industry and Trade Service Deputy Director Nhu Mai said domestic businesses
have recently paid more attention to promoting trademarks.

Many of them have invested in upgrading their technology, improving quality and
diversifying designs.

Imports are to some extents unaffordable by local consumers, she said.

In addition to the Government's stimulus package, many businesses have launched
promotion programmes of their own.

Citimart and Maximart supermarket chains are planning price discounts worth 2
billion VND.

The Saigon Coop and Big C supermarkets are selling their goods at 5-30 percent
discounts.

Businesses are also making efforts to improve their product quality to win over
cheap Chinese imports, which once flooded the market.

This year sees only few candy boxes from neighbouring countries, while local
brands Kinh Do, Bibica, SNfood, Pham Nguyen, Hai Ha and Coopmart are making their
dominance on supermarket shells.

Garment making and textile enterprises have also been turning to the local market
to make up for the losses of overseas market share due to the global economic
crisis.

Deputy General Director of the Vietnam Garment and Textile Group (Vinatex) Le Tien
Truong said 2009 would be a tough year for the industry with double pressures.

"Pressure on exports will come from a huge advantage of Chinese products in the
US , with the world's largest consumer market lifting quotas for the world's
largest apparel producer since January 1, 2009," Truong said.

"The domestic market poses another pressure on the industry for the Government's
commitments to the World Trade Organisation to fully open the retail market to the
world," he said.


For producers and distributors of domestic products, especially commodities sought
after during Tet, it is time to expand domestic market shares.-Enditem