In mid-November 2024, as part of the documentary series “The Road to the Farm” broadcast on VTV2 by Vietnam Television, Ph.D. candidate and lecturer Lê Sài Gòn, Director of the Saigon Import-Export Training and Consulting Center (SIMEX), shared in-depth expert insights on the topic “Small Businesses and Cooperatives on the Path to Bringing Agricultural Products to the World.” This initiative provided valuable guidance for agricultural export businesses and cooperatives (HTX) to better understand the strict requirements of international markets and develop competitive capabilities.
Raising Standards for Agricultural Exports
Vietnamese businesses often lack the experience to meet the high standards of demanding markets like Europe, the U.S., Japan, and Australia. Strict requirements for food safety, traceability, pesticide residue control, and environmental certifications pose significant challenges. To access these markets, companies must invest in quality control processes and obtain internationally recognized certifications.
Challenges in the Middle Eastern Market
Exporting agricultural products to the Middle East faces unique difficulties due to geographical and market-specific requirements. Most Vietnamese agricultural products enter this region via third countries, complicating cost control and customer service. Additionally, cultural differences necessitate labels in Arabic and compliance with Halal standards. However, most products currently use English labels and fail to meet these requirements.
Building an Agricultural Export Management Team
A successful export chain requires a competent management team with strong expertise and skills. Key roles include an export management director, market specialists, supply chain managers, and personnel responsible for international legal procedures. Essential skills include export planning, risk management, and a thorough understanding of customs regulations.
Market Research and Contract Negotiations
Thorough market research prior to export helps businesses identify demand and consumption trends in target markets. This reduces risks in contract negotiations and enables the selection of appropriate payment methods, minimizing financial losses.
Optimizing Logistics Costs
Depending on the type of goods and transportation distance, businesses should choose the optimal mode of transport—air, sea, or land. Air transport is fast but costly, suitable for high-value products. Sea transport, while slower, is ideal for bulk goods. Balancing cost and product quality upon arrival is critical for consumer satisfaction.
Focus on Packaging and Branding
Packaging and labeling are the “face” of a product when it reaches customers. Businesses should invest in packaging designs that align with local consumer preferences, particularly in markets with high aesthetic and detail requirements.
Solutions for Small-Scale Production
Small-scale production is a significant barrier for many businesses hesitant to enter export markets. To address this, cooperatives can collaborate to form large, stable supply chains. Additionally, adopting technology in production improves productivity and product quality, ensuring a steady supply.
Investing in Technology for Production and Export
Technology plays a crucial role in ensuring quality and enhancing competitiveness. Businesses can invest in quality control systems, automate production processes, and implement preservation technologies to extend product shelf life. For cooperatives and small to medium-sized enterprises, adopting cost-effective technologies can improve efficiency and reduce expenses.
Lê Sài Gòn’s insights not only provided valuable information but also inspired small businesses and agricultural cooperatives to venture into international markets, elevating the value of Vietnamese agricultural products on the global stage.
