A woman carries a large load of goods from Vietnam to Cambodia via the Tinh Bien Border Gate.Vietnamese businesses gain traction in Cambodia
Saturday, October 3, 2009
Thanh Nien News (Hanoi)
Thai and Chinese enterprises lose Cambodian market shares to Vietnamese investors.
Le Hong Thuyen is home from Cambodia looking for new suppliers for her shopping mall in Phnom Penh.
The mall, named Vinamart, is the Cambodian capital city’s number-one outlet for Vietnamese products. When it opened in 2006, Vinamart only sold a limited product range supplied by 16 Vietnamese producers. But the outlet has grown larger, and now offers a vast array of both Vietnamese and Cambodian goods.
“It’s a surprise that Cambodian people like Vietnamese goods these days,” said Thuyen. “They especially like Vietnamese food products... they’ve gotten to know and trust Vietnamese brands.”
Lay Vannak, deputy major of Takeo Province, which borders Vietnam’s An Giang Province in the Mekong Delta, said Vietnamese products had expanded their market shares in Cambodia and “some products have defeated those from Thailand and China.”
He said Vietnamese businesses have improved their competitiveness in terms of both quality and packaging.
Launch-pad
An Giang Province has a long border with Cambodia and accounted for 70 percent of bilateral trade between the two countries. Vietnam exported US$1.7 billion goods to Cambodia last year, an annual growth rate of 40-45 percent.
In August, the province officially opened the Tinh Bien Economic Border Gate Zone, where Cambodians, Vietnamese and international tourists can access duty free goods at the border.
Nguyen Minh Tri, head of the province’s Economic Border Gate Authorities, said the zone and its ten supermarkets were a strategic foundation upon which Vietnamese goods could penetrate the Cambodian market.
He also said the zone acted as a depot from which exports were launched to other markets around the globe.
Ho Chi Minh City’s Industry and Trade Service said it was difficult for Vietnamese businesses to store their products in Cambodia and it would be hard for them to boost their exports to the market where local production was underdeveloped.
Vu Kim Hanh, chairwoman of the Vietnamese High Quality Goods Club, said its members planned to build a warehouse at Tinh Bien as part of their export strategy to Cambodia.
Room for improvement
Local businesses were offering strong products at competitive prices in Cambodia, but their distribution and promotion networks remain weak, according to a survey conducted in September by the Business Support Assistance (BSA) in association with Vietnamese research firm Truong Doan.
The survey of consumers and retailers in Phnom Penh and Battambong cities showed that high-quality Vietnamese goods were recognized in Cambodia but that Vietnamese products in general were attached to less competitive labeling and promotions than those from Thailand, said Truong Cung Nghia, director of Truong Doan.
Nghia said Vietnamese businesses were strong in stationaries, bicycles and two and four-wheel accessories, footwear and garments, building materials, fertilizers, seeds, home appliances and plastic products.
Consumer and retailer satisfaction with high-quality Vietnamese goods was higher than with those from Thailand and China, said the survey, which added that retailers profited more from trading Vietnamese goods.
But still, Vietnamese businesses lacked the intense promotional campaigns of their Thai counterparts, which offered free products, cost cutting and television commercials.
In need
“We need the support of Vietnamese producers in terms of a distribution strategy,” said Thuyen from Vinamart.
Thuyen said her shopping mall dealt in Vietnamese products and she was finding it difficult to train Cambodian staff as well, due to the language barrier.
Local producers should understand the difficulties and give a hand to traders like her in the new market, she said
Vietnamese product prices were also less competitive than Thai rivals, which enjoyed lower import taxes in Cambodia and had the strategic support of the Thai government, said the BSA.
The firm said the Vietnamese government should increase dialogues on the issue with its Cambodian counterparts to help Vietnamese businesses like the Thais had done.
Reported by Minh Quang
Le Hong Thuyen is home from Cambodia looking for new suppliers for her shopping mall in Phnom Penh.
The mall, named Vinamart, is the Cambodian capital city’s number-one outlet for Vietnamese products. When it opened in 2006, Vinamart only sold a limited product range supplied by 16 Vietnamese producers. But the outlet has grown larger, and now offers a vast array of both Vietnamese and Cambodian goods.
“It’s a surprise that Cambodian people like Vietnamese goods these days,” said Thuyen. “They especially like Vietnamese food products... they’ve gotten to know and trust Vietnamese brands.”
Lay Vannak, deputy major of Takeo Province, which borders Vietnam’s An Giang Province in the Mekong Delta, said Vietnamese products had expanded their market shares in Cambodia and “some products have defeated those from Thailand and China.”
He said Vietnamese businesses have improved their competitiveness in terms of both quality and packaging.
Launch-pad
An Giang Province has a long border with Cambodia and accounted for 70 percent of bilateral trade between the two countries. Vietnam exported US$1.7 billion goods to Cambodia last year, an annual growth rate of 40-45 percent.
In August, the province officially opened the Tinh Bien Economic Border Gate Zone, where Cambodians, Vietnamese and international tourists can access duty free goods at the border.
Nguyen Minh Tri, head of the province’s Economic Border Gate Authorities, said the zone and its ten supermarkets were a strategic foundation upon which Vietnamese goods could penetrate the Cambodian market.
He also said the zone acted as a depot from which exports were launched to other markets around the globe.
Ho Chi Minh City’s Industry and Trade Service said it was difficult for Vietnamese businesses to store their products in Cambodia and it would be hard for them to boost their exports to the market where local production was underdeveloped.
Vu Kim Hanh, chairwoman of the Vietnamese High Quality Goods Club, said its members planned to build a warehouse at Tinh Bien as part of their export strategy to Cambodia.
Room for improvement
Local businesses were offering strong products at competitive prices in Cambodia, but their distribution and promotion networks remain weak, according to a survey conducted in September by the Business Support Assistance (BSA) in association with Vietnamese research firm Truong Doan.
The survey of consumers and retailers in Phnom Penh and Battambong cities showed that high-quality Vietnamese goods were recognized in Cambodia but that Vietnamese products in general were attached to less competitive labeling and promotions than those from Thailand, said Truong Cung Nghia, director of Truong Doan.
Nghia said Vietnamese businesses were strong in stationaries, bicycles and two and four-wheel accessories, footwear and garments, building materials, fertilizers, seeds, home appliances and plastic products.
Consumer and retailer satisfaction with high-quality Vietnamese goods was higher than with those from Thailand and China, said the survey, which added that retailers profited more from trading Vietnamese goods.
But still, Vietnamese businesses lacked the intense promotional campaigns of their Thai counterparts, which offered free products, cost cutting and television commercials.
In need
“We need the support of Vietnamese producers in terms of a distribution strategy,” said Thuyen from Vinamart.
Thuyen said her shopping mall dealt in Vietnamese products and she was finding it difficult to train Cambodian staff as well, due to the language barrier.
Local producers should understand the difficulties and give a hand to traders like her in the new market, she said
Vietnamese product prices were also less competitive than Thai rivals, which enjoyed lower import taxes in Cambodia and had the strategic support of the Thai government, said the BSA.
The firm said the Vietnamese government should increase dialogues on the issue with its Cambodian counterparts to help Vietnamese businesses like the Thais had done.
Reported by Minh Quang
15 comments:
the reason why vietnamese products are doing so well is because all the buyers in Cambodia are VIETNAMESE... goes to show the number of vietnamese in Kam-Bot-Che
What do you surprise about?
There are more than six million Viet in Srok Khmer, you called it's surprise.
Socheata stops giving Vietnamese names to Khmer people and cities!
This is not a joke!
Is this your hidden goal to help Vietnam annex Cambodia or simply your stupidity?
KI Team,
Is this your way of helping to preserve Khmer identity by nicknaming Khmer people, towns and cities with Vietnamese like names?
Think about its implications.
Long live Kam-Bot-Che the new province of Vietnam....
Violators
Intruders
Enemies
Thieves
Neglect
Attitude
Murderer
Envous
Spoils
Expand
The information here sound good on paper and there is no third party to verify from top to bottom.
Clearly under AH HUN SEN leadership, Cambodia has become a dumping ground for all kinds of consumer products. Please beware especially the food products because most factories are infested with rats, mice, and roaches and maggots. The fact that Cambodia doesn't even have consumer protection law and there is nothing to be happy about!
FIRST TIME IN HISTORY OF OUR BELOVED LAND...EVER..EVER ASSOCIATED WITH THE "SOUR POUCH...'..ENNEMIE....AS FRIEND..AND MAY BE BEST FRIEND FOR NOW....AND CAMBODIA WILL SOON BE GONE LIKE WIND.....WHEN...CAMBIAN PEOPLE WILL OPEN THEIR EYES...AND SEE THE TRUTH....WHY...THEY LOVE ONLY THEMSELF..BUT NOT THEIR LAND...AND CHILDREN...SO SAD TO SAY....BECAUSE...CAMBODIA NOW IS....80 PERCENT...YUON....IN CONTROL.....
it goes to show this is a changed cambodia. khmer people don't give a crap in this day and age of business. perhaps it goes to show people are educated and can see for themselves and buy whatever product they like with their money without so much outdated political influence. remember there are more to cambodia than some people think they know all. i hope america is helping cambodia to become a real free market economy like that in the USA. god bless cambodia.
hey phnom penh is spell so, not any other way, ok! if you can't assimilate to khmer way, we will deport you all back to youn, ok! or worst sent you to jail, really. this is cambodia, not youn, ok!
Khmer choose not to buy Thai products much these days. They are so fed up with Thai fighting over Preah Vihear.
I believe, let the past be bye gone because today, tomorrow and the future is more important than yesterday, however least we can do is learned from the past mistakes and turn it into a positive learning outcome. We must focus on what needs to be done next e.g. putting new infrastructures such as every 1000 quality homes have access to safe roads, schools, park, lake, market, dentist/clinic, family doctor /clinic, and also focusing on waste management which turn into gas and be usable for effective outcome. The people can not achieve this though but the government can if they are to work together as a team, that is to reach common goal and common interest for the benefit of both the people and government. Government needs to ask every country to donate their engineering teams to come and teach us the skills as well helping us to achieve the outcome because money alone is not good enough as it could go into the wrong hands and then it will be useless. Another example is to look at these successful countries such as Aust, Singapore, Janpan, USA extra. If these nations can create a safe heaven for their people so can we. Aust
It is one of the ways to kill Khmer People
If Thai is able to take over Preah Vihear it is just a couple square kilometers of land only is lost. However, we lost all our land to the Viets now and still some Khmers don't come to realize that.
Loosing part of our beloved nation..even an inch.., we regard it as a lost and we regrettably so, and I do understand your point 6:58am. I agree that Khmer people must do whatever it takes to deter the Viet. from taking over Cambodia. As for Thai, we can retain its encroaching but the Viet. Khmer must do it soon, otherwise, it will be too late....too many Viet. kids in Cambodia and they are speaking Khmer fluently....just one day and that one day will come soon that one of the Vietnamese kids will lead Cambodia. Khmer must control their own destiny...and not others..
Post a Comment