Food industry enterprises proactively adapt to export

The company's production is all geared towards green and sustainable production. Photo: P.U

Products stand firm in foreign markets

Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company (FMC), a large shrimp exporter in the Mekong Delta, said that FMC and its member company KAF are starting the third quarter of 2024 with many shrimp export orders to "difficult" markets. In July 2024, KAF achieved the highest export level in nearly 4 years of establishment, contributing to bringing the consolidated monthly figures to the highest level in nearly 30 years of FMC's establishment, over 30 million USD. To meet the requirements of partners, FMC invests and has a distinct advantage over other businesses in having large farming areas and the largest shrimp output, so it is very proactive in regulating raw materials and implementing export contracts.

Ms. Ly Kim Chi, President of the Ho Chi Minh City Food and Foodstuff Association, said that food enterprises are being affected by a number of management policies, affecting their production and export. Currently, food products consumed domestically as well as exported are required to increase sustainability, so businesses have promptly grasped the requirements to meet the requirements of their partners. Currently, businesses have had orders to export products to 180 countries and territories. In July 2024, the remarkable export growth of many food and foodstuff groups recorded a total export turnover in the first 7 months of the year exceeding 2 billion USD such as seafood, vegetables, cashews, coffee, rice, etc. According to experts, Vietnam is a country with abundant agricultural output and raw materials, which is very favorable for supplying inputs for food production and processing activities. From an importing country, Vietnam has become the world's leading producer and exporter of food and foodstuffs with a series of leading agricultural products for export such as rice, coffee, pepper, cashew nuts, seafood, etc. Net export revenue reached VND 1,740 billion, up 37% over the same period and higher than the 5.9% increase in the first quarter of 2024. To achieve this result, businesses continuously improve products and maintain close relationships with partners in key export markets in the context of many fluctuations in the world, which is the basis for growth in export activities in recent quarters.

To enter and stand firm abroad, many businesses believe that it is necessary to build prestige in their own market first and then find partners to accompany and share the brand story in the international market. If they want to become part of the supply chain of the world's leading retailers, businesses need to have a different mindset. Other necessary criteria to consider are large-scale production capacity, how to increase price competitiveness, ensure price stability in the face of market fluctuations, logistics, exchange rates, and meet the standards of supply chain sustainability, etc.

Ms. Dinh Hong Van, Senior Marketing Director of Spices, Masan Consumer Goods Joint Stock Company, said that developing e-commerce channels is a way to create a step into international markets. With the direction of expanding market share abroad, Masan Consumer Goods Joint Stock Company sets a very large goal of achieving 15% of total revenue from international market business by 2027. Currently, Masan focuses on strategic markets, researching consumer markets to develop suitable products that meet the requirements of the international market.

Environmentally friendly products

Regarding the green transformation to meet the export requirements of enterprises, Deputy Minister of Industry and Trade Phan Thi Thang said that with the trend of consumers favoring green and sustainable products, Vietnamese enterprises are also constantly transforming towards sustainability throughout the entire production value chain. Sustainable development trends in the industry are also constantly updated and developed, including aspects of food safety, ensuring greenness and sustainability in the use of organic raw materials, reusing and recycling waste or surplus products from the production process, as well as measures to limit  the use of plastic and reduce packaging in general. This is clearly a challenge but should also be seen as an opportunity for Vietnamese food and beverage manufacturers and exporters to change and develop.

According to Vietnam Dairy Products Joint Stock Company, sustainable development strategies are also utilized by enterprises as a competitive advantage when exporting to create a "new breeze". For example, products exported to Australia and New Zealand with environmentally friendly packaging, it is expected that by 2025, 100% of products exported to this region will use easily recyclable packaging... In the coming time, the company will maintain its focus on emerging markets, taking advantage of free trade agreements and building strategic partnerships. In particular, Vinamilk continues to promote trade promotion activities, connecting international trade by continuously attending domestic and foreign fairs and exhibitions to update the market and connect with partners.

In the context of the "green" consumption trend increasingly creating great impacts in the world, experts say that businesses need to invest early in sustainable development to increase value and long-term advantages, especially for industries in which Vietnam does not have strengths.

According to the survey results of the Ho Chi Minh City Business Association on the business performance in the second quarter of 2024, the export activities of enterprises are gradually improving, with many export orders. Enterprises in the agricultural processing industry, including rice, seafood and fruits, have witnessed strong growth thanks to booming demand in China and changes in consumer preferences. The food processing industry reported a 70% increase in export value in the first five months of 2024, emphasizing its important contribution to the export economy of Ho Chi Minh City.

In the context of Vietnam's strong participation in free trade agreements, export enterprises have proactively improved the quality of goods to meet the strict requirements of importing countries. Regulations on rules of origin, techniques and environment for exporting goods will help promote the implementation of technical advances, technology transfer, and improve production capacity. Apply new technologies and new materials to create export products with distinct features, implement energy-saving, high-tech, and environmentally friendly production programs.