Building swiftlet's nest brand: Targeting the US and European markets

Strategic outlook for Can Gio's swiftlet's nest industry

There has been a prioritized effort across multiple provinces and cities in Vietnam to promote the establishment of swiftlet's nest brands with steps towards export. Notably, the first Vietnamese business was approved by China for official export of swiftlet's nests.

According to Dr. Nguyen Ngoc Hoa, Director of the Center for International Analysis at the Ho Chi Minh City University of Industry, businesses must meet multiple requirements to establish a swiftlet's nest brand, including constructing standardized swiftlet farms, integrating technology for product origin traceability, ensuring disease safety, among many others. In addition to their role as export requirements, they stand as mandatory market standards.

"In light of these circumstances, whether Can Gio swiftlet's nests aims to establish a brand, register for OCOP product certification, or develop towards export, it is imperative to adhere to the aforementioned criteria. The unique and high-quality nature of Can Gio swiftlet's nests further underscores the significance of successfully fulfilling these requirements," remarked Dr. Nguyen Ngoc Hoa.

Indonesia is currently dominating the global swiftlet's nest market, contributing 70% of the total yield worldwide. This first place is followed by Malaysia at 20%, Thailand at 7%, and Vietnam and other countries at only 3%. Notably, China stands as the primary global consumer market for swiftlet's nest products, constituting a substantial 70%.

Dr. Dao Ha Trung, Chairman of the Ho Chi Minh City High-Tech Association, offers a perspective suggesting that Can Gio swiftlet's nests can expand its focus beyond developing towards export. Namely, a strategic emphasis should be placed on cultivating an exceptional brand, engaging in thorough product processing for domestic consumption, and selectively targeting new markets to secure premium pricing.

"Instead of targeting the Chinese export market, Can Gio district can direct its focus towards other countries such as the United States, Europe, Japan, Australia, etc., to enhance the product value for better profitability. Additionally, the district should broaden their prespective instead of investing in traditional markets," advised Dr. Dao Ha Trung.

According to the Dr. Trung, Can Gio swiftlet's nest efforts in brand establishment must dedicate to reaching a premium status. Packaging and design are crucial factors leading to the success of Can Gio swiftlet's nests.

Accordingly, these factors involve the design printed on the product and the information provided on the packaging. More importantly, in addition to its physical aspect, the information must also be electronically accessible through QR Codes.

"As a result, swiftlet's nest producers can provide consumers with additional information on origin traceability, certification, etc. This will be a sustainable development direction for Can Gio swiftlet's nest production and processing industry," added Dr. Dao Ha Trung.

In agreement with these perspectives, Mr. Nguyen Van Hong, Chairman of Can Gio District People's Committee, also believes that professional packaging and design will enable local businesses to market their goods more effectively.

"Electronic and printed information helps increase the value of the product as well as consolidate the businesses' management over their products. Customers are more likely to have a positive opinion and to trust the business if the information is transparent," assessed Mr. Hong.

Information provided on the packaging should also include instructions on usage, storage, and suggestions for combination with other foods to maximize nutritional value.

The Ho Chi Minh city's Department of Agriculture and Rural Development aims to have 10% of local swiftlet farms participate in exports and establish an eco-tourism model in association with swiftlet product consumption by 2025. By 2030, 50% of local swiftlet farms are expected to engage in exports. Additionally, maintaining a disease-free zone for avian influenza and expanding it to include Newcastle disease is another key focus.

Can Gio swiftlet's nests will gain reputation with the help of technology

An inevitable reality to acknowledge is that local swiftlets in Can Gio district are gradually exhausting their sources of food and the district faces the risk of swiftlet migration. As a result, strict management of the swiftlet population, in combination with decisive efforts to establish the Can Gio swiftlet's nest brand, is imperative.

The aquacultural production area in Can Gio district is rapidly depleting, which will inevitably lead to a decline in the swiftlet population. Consequently, digital transformation for the management of aquacultural production and processing areas is a direct approach to effectively manage the local swiftlet population.

Mr. Nguyen Anh Nguyen, an information technology expert in Ho Chi Minh City, believes that swiftlets necessitates digital transformation, which will grant them the right to live and reproduce.

"Origin traceability is a meaningful keyword. However, it is a challenging task which cannot be accomplished unilaterally. The sound emitted by swiftlets and the cameras in swiftlet houses must also be involved in the digital transformation process, thereby identifying more effective swiftlet farming models," shared Mr. Nguyen Anh Nguyen.

Swiftlet farmers must be the heart of operation in order to develop a sustainable swiftlet industry. The digital transformation of Can Gio's swiftlets will help improve data transparency, and swiftlet farmers will have additional advantages over traditional farming methods.

According to Mr. Nguyen Minh Duc, Deputy Secretary-General of the Vietnam E-commerce Association, Can Gio district can gradually establish its presence on major e-commerce platforms worldwide such as Amazon, Alibaba, etc. The introduction of Can Gio swiftlet products to these platforms means establishing a brand presence in 18 major markets from over 185 countries around the world.

The "Can Gio swiftlet's nest" keyword currently has only 600 to 1000 searches per month on e-commerce platforms, whereas the "Khanh Hoa swiftlet's nest" keyword boasts an impressive 100,000 searches per month, which is equivalent to 1.2 million searches per year. Moreover, this figure equates 2 million searches per month globally.

"This should be the first step for the Can Gio District People's Committee to work towards, in addition to developing the domestic market," emphasized Mr. Nguyen Minh Duc.

This development formula has been widely adopted by many businesses nationwide. Vietnamese businesses initially found it challenging to integrate their products into supermarket supply chains. Subsequently, they expedited procedures to sell their products on domestic and international e-commerce platforms. As a result, their products were ordered and widely consumed by various countries around the world. Thanks to these "green cards," domestic consumption has consequently become more accessible.

"This is a lesson for swiftlet businesses in Can Gio district looking to develop the local brand. There is no need to follow the conventional path; innovative approaches are possible.

Bringing products to e-commerce platforms is an exemplary approach, and it is the shortest and easiest path to promote Can Gio swiftlet products globally," added Mr. Nguyen Minh Duc.

The Vietnam E-commerce Association currently comprises approximately 700 members, including domestic and international e-commerce platforms. The association will continue to accompany Can Gio district by providing guidance on the development roadmap, refining the product's message on e-commerce platforms, and contributing to the brand development strategy.