Local manufacturers under tough competitive pressure

Although domestic retail sales of goods in 11 months reached nearly VND6 quadrillion (US$246 billion), Vietnamese manufacturers are facing currently great competitive pressure from the influx of imported goods.

At the forum

The news was released at a forum to promote production and consumption of Vietnamese goods yesterday in Hanoi organized by the Ministry of Industry and Trade.

At this forum, Deputy Director of the Ministry of Industry and Trade's Domestic Market Department Le Viet Nga announced that after more than 14 years of carrying out the campaign to call for the support of Vietnamese consumers in using Vietnamese goods, Vietnamese goods have been consumed better especially essential goods and consumer goods.

Many made-in-Vietnam products are currently being displayed in distribution networks including traditional channels and modern channels.

Ms. Le Viet Nga said that domestically produced goods currently account for 80 percent-90 percent of goods in supermarket chains of some domestic enterprises such as Co.opmart ( with 90 percent), Winmart (with 90 percent), BRG Retail (from 80 percent to 90 percent).

Foreign-invested distribution channels such as Aeon, Central Retail, MM Mega Market, and Lotte Mart also make many contributions to the community where they operate their businesses by purchasing local products and supporting the promotion of consumption of domestic commodities, specialties in localities (OCOP) products and local staple goods.

Moreover, these foreign-invested distribution channels have been keeping the proportion of Vietnamese goods at a high level in their supermarkets and retailers.

Deputy Director of the Domestic Market Department Le Viet Nga speaks at the forum

The country's total retail sales of goods and consumer service revenue in November were estimated at VND552,700 billion, up 1.4 percent over the previous month and up 10.1 percent over the same period last year. In the first 11 months of 2023, total retail sales of consumer goods and services at current prices are estimated to reach more than VND5.6 million billion, an increase of 9.6 percent over the same period last year.

The domestic market has contributed to the growth of the manufacturing and processing industries, as well as the agricultural, forestry and fishery production and processing industries. This helps create more employment and ensure national social security, said the Deputy Director of the Department of Domestic Market.

However, Ms. Le Viet Nga also said that domestic manufacturers of consumer goods are in the face of great competitive pressure as an influx of imported products is being displayed in the domestic market after new free trade agreements including CPTPP and EVFTA officially take effect. This is also a huge challenge for local producers in the context of general integration.

She added that the proportion of imported goods in the distribution system, especially cross-border e-commerce channels, will be likely to increase in the near future when digital and e-commerce platforms are growing rapidly and continuously and will dominate the market, with a growth rate of more than 20 percent per year.

In addition, many online and offline foreign retail chains have been expanding their stores and warehouses in Vietnam to distribute imported goods, especially cosmetics and fashion apparel (textiles, footwear), functional foods and high-end foods, furniture and household appliances, products for mothers and babies

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