Small producers export and win big

via Khmer NZ

Monday, 19/07/2010

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VietNamNet Bridge – There are no statistics on exports by small merchants and household-producers, but they have been exporting quite a wide range of products, from footwear and clothing to fine arts, spices and medicated oil.

Unlike larger companies, small producers do not launch ad campaigns. Their customers learn of their products through word-of-mouth.

Thoai Phan, a medicated oil workshop owner in HCM City revealed that “Viet Kieu (overseas Vietnamese) like my products, because they are cheap and have high quality. They purchase my oil as gifts for relatives and friends back home. Then those people introduce it to each other. As a result, more and more people purchase my medicated oil from abroad.

Nowadays, he sells his products to five countries, including 500-600 boxes (60 bottles of oil per box) every month to Cambodian wholesalers. A trade company from the Philippines buys 1000 boxes a month and he also sells the oil to China at the border market. Fluctuating orders come regularly from Malaysia and Indonesia. Thoai Phan also sells to Viet Kieu and travelers in Vietnam.

The medicated oil is cheap, while the quality is in no way inferior to Singaporean or Chinese products, so, it can fit the pockets of consumers.

Anh Hai only sold spice products to restaurants and housewives in HCM City at first, but they have become more and more famous as housewives recommend them and introduce the products to foreigners. Therefore, Anh Hai has expanded the business, distributing at Ben Thanh, An Dong and Vuon Chuoi Markets.

Anh Linh company is now making 500 wedding gowns to sell to France and 300 gowns to sell to Japan. A representative of Anh Linh brand claimed that the company spends nothing to advertise as clients arrive on their own. Linh, the owner, remarked: “I can sell products because they are cheap with high quality.”

“Importers from Cambodia, Japan and the US have been buying footwear products from us, because they are satisfied with the quality. Especially, they like leather products with manual decoration whose prices are cheaper by 40-50 percent than those from other countries,” added Dao, the owner of Duc Tai footwear workshop at Ben Thanh Market.

Ly Dai Son, the owner of Anh Hai spice brand, would rather produce and small on a small scale than expand and be unable to control the quality.

Thoai Phan remarked that he could increase the volume if he accepted deferred payment. He will not do so, however, because it is risky.

“I want to expand my business. I want to set up a company, establish sales agents and register my trademark in foreign countries. Yet medicated oil is considered as medical product and is a conditional business. I am following procedures to set up an agent in China, but I still cannot get license,” Phan said.

Meanwhile, Linh has set up Anh Linh Wedding Gown Company to have a legal entity that allows her to export wedding gowns more easily. However, she complains that even though Anh Linh Company makes wedding gowns from A to Z, she still cannot export products with the Anh Linh brand name.

Source: Saigon tiep thi