International buyers seek specific qualities in Vietnamese agricultural products

High quality products to conquer the global market

As one of Vietnam's leading rice exporters, Loc Troi Group has strategically focused on sustainable rice production to capture the global market. Mr. Nguyen Duy Thuan, CEO of Loc Troi Group, emphasizes rice's role as a vital and staple food product. On the other hand, rice production generates a significant amount of greenhouse gases.

Consequently, Loc Troi Group has transformed its rice production practices by implementing Sustainable Rice Platform (SRP) standards in high quality rice production areas. Additionally, Loc Troi Group is the first business in the world to achieve a SRP100 rating, as certified by the International Rice Research Institute (IRRI).

"This SRP100 certification opens up opportunities for certified carbon credits that can be traded on the international market. Loc Troi's rice products are fully traceable. Loc Troi can demonstrate to all stakeholders that rice production and processing can be one of the most profitable and sustainable industries in the world", Mr. Thuan stated.

As a business specializing in the processing and export of fresh fruits and vegetables, Mr. Phan Quoc Nam, Business Director of Blue Ocean Trading Co., Ltd., stressed that the company's current strength lies in exporting fresh tropical fruits such as lychees, mangoes, pomelos, and star apple to markets in the United States and Australia, with a monthly output of approximately 50 tons.

According to Mr. Nam, there is a high global demand for tropical fruits, and Vietnam excels in this field. Moreover, Vietnamese tropical fruits are highly competitive in terms of quality. Local farmers have significantly improved their production processes to ensure safety and eliminate chemical residues. Most notably, farmers are rapidly expanding high-standard production areas such as GlobalGAP and organic farming, resulting in highly competitive products for export to the global market.

Mr. Nam revealed that the company is investing in constructing a frozen fruit and vegetable processing plant with a capacity of 300 tons per month in order to further expand their target market range. Accordingly, the plant is expected to commence operations in the first quarter of 2024. "The plant will focus on processing products such as avocados, passion fruit, root vegetables, and sweet potatoes for export."

Mr. Dinh Minh Tam, Director of Co May Company Limited, which is a company that specializes in high-quality rice exports to various markets including the United States, the European Union, and Hong Kong. Businesses need to standardize product quality and ensure a stable supply source in order to conquer the aforementioned markets.

"We primarily export ST25 rice under our own Co May brand. We only collaborate with one or a few exclusive agents in each market. Additionally, we register trademark copyrights when for our export products", Mr. Tam explained. Co May's exported rice is priced at 1,200 to 1,250 USD per ton in the Hong Kong market.

"Thai Hom Mali rice was widely exported to Hong Kong in the past. However, Vietnam's ST25 rice has recently dominated this market. They select goods that are produced in coastal regions using ecological farming processes", Mr. Tam added.

Supporting businesses to strengthen engagement in the global supply chain

According to Mr. Do Thang Hai, Deputy Minister of the Ministry of Industry and Trade, Vietnam's total export and import turnover reached 435.23 billion USD in the first eight months of 2023. Accordingly, the export turnover reached 227.7 billion USD, resulting in a trade surplus of 20.19 billion USD for Vietnam. Although exports have decreased compared to the same period in 2022, they reflect the concerted efforts of various sectors, government authorities, and the business community.

These achievements have been possible due to the active contributions of export market development activities and trade promotion efforts. These efforts involved the resolute implementation of multiple foreign trade support measures, the adoption of innovative promotion strategies, and the efficient management of the supply of essential goods. They have also contributed to boosting import and export activities.

In order to effectively strengthen businesses' engagement in global supply chains, follow the trend of increased international economic integration, and facilitate connections between foreign importers, domestic manufacturers and exporters, the Ministry of Industry and Trade and the Ho Chi Minh City People's Committee jointly organized the "Vietnam International Sourcing Expo 2023 - Connecting with the global supply chain" export forum. This event saw the participation of over 300 businesses representing various sectors within the international supply chain.

"This series of events not only promotes exports and develops essential markets but also serves as a platform for businesses to meet and exchange experiences. We hope that many successful trade agreements will be signed at this event, and participating companies will have the opportunity to meet new partners, customers, and gain new business ideas. These efforts will contribute to expanding the reach of Vietnamese products in the global market", Deputy Minister Do Thang Hai shared.

International buyers seek specific qualities in Vietnamese agricultural products

Mr. Olivier Langlet, General Director of Central Retail Vietnam Corporation, noted that Vietnam has made significant strides in developing its production capabilities, transforming raw materials into high-quality processed products. Vietnamese products boast an increasingly higher quality, capable of meeting the growing demands of customers worldwide.

Central Retail is actively seeking sustainable partners in Vietnam, with a strong focus on the agricultural and food sectors. The company is interested in Vietnamsee products that offer unique strengths, especially those that are new, health-oriented, sourced from natural origins, produced through organic farming processes, and managed with quality tracking via blockchain technology. Products under priority programs, contributing to circular economic models, are also of special interest. Mr. Olivier Langlet emphasized the significance of these criteria and added that Central Retail has been procuring goods from Vietnam with a total annual value exceeding 100 million USD.

Mr. Avaneesh Gupta, a representative of Walmart's retail group, believes that Vietnam is one of the most crucial supply sources for Walmart and an indispensable supply center across Southeast Asia. The Walmart's supply source team has assisted in exporting Vietnamese products globally, including to the United States, Canada, Mexico, Chile, and China.

Walmart is actively seeking traditional and new suppliers to diversify its supply chain. Vietnam's key export commodities including textiles, hardware, and leather goods are among the products actively sought by this corporation. Furthermore, Walmart is proactively exploring and procuring food products, including seafood, cashews, soy milk, coffee, fresh fruits, and fruit-based snacks.

"We look forward to contacting Vietnamese manufacturers and explore opportunities for sourcing a wider range of products from Vietnam to meet consumer needs both domestically and globally. We highly appreciate the efforts of the Vietnamese people, laborers, and businesses as well as the country's resources for enabling the responsible global exports of these products", Mr. Avaneesh Gupta emphasized. In addition to traditional suppliers, businesses are constantly seeking new suppliers to diversify the supply chain.

"Aeon Corporation will continue to be active in the export of Vietnamese products. We hope that Vietnamese products will become indispensable and reach the hands of Aeon customers worldwide", said Mr. Yuichiro Shiotani, General Director of Aeon Topvalu Vietnam. Aeon is the largest retail company in Japan, with over 18,000 stores in 14 countries worldwide, including Vietnam.

The "Vietnam International Sourcing Expo 2023 - Connecting with the global supply chain" event was co-organized by the Ministry of Industry and Trade and the Ho Chi Minh City People's Committee from September 13 to September 15 in Ho Chi Minh City.