[NEWS] – How do Vietnamese goods win the trust of Lao consumers?

In the Laos market, Vietnamese consumer goods are currently ranked second after Thai goods, but in terms of proportion, Thai goods consumed in Laos are much higher than Vietnamese goods. To convert this position in the Lao market, Vietnamese goods need a lot of effort...

The position of Vietnamese goods in Laos

The Laos market is the destination of many Vietnamese businesses because it is quite "easy", the regulations on product quality standards are not high and accepts most of the certifications of standards of exporting countries. Laos is also a country that imports most of the goods for domestic consumption, and Vietnamese goods are highly appreciated by the Lao people.

According to statistics of the Ministry of Industry and Trade, in the first 5 months of 2022, the trade turnover between Vietnam and Laos reached 708.2 million USD, of which, Vietnam’s exports to Laos reached 247.2 million USD. The main export items of Vietnam to Laos include products from iron and steel, means of transport and spare parts, machinery, equipment, tools, other spare parts, fertilizers of all kinds, plastic products, etc. Vegetables.

Competition is not small from Thailand

Although Vietnamese goods are on the favorite list in Laos, we cannot avoid competition from other countries, typically Thailand. The geographical location of Laos and Thailand is very close to each other, from the northeast of Thailand to the Laotian capital Vientiane can travel within a day, creating cheaper transportation costs than Vietnam.

On the other hand, the Laos - China high-speed railway has been put into operation at the end of 2021. It is more convenient to transport goods to Northern Laos, so Thai goods are popularized faster. Lao and Thai languages ​​are quite similar, Lao people watch Thai TV channels and Facebook often, so they are close and easy to understand. Moreover, the marketing and sales strategy of Thai businesses is very flexible and the distribution channel is professional. For example, in Vietnam, where there is a BigC supermarket system, in Laos, there is a BigC mini supermarket chain that meets the right segment and consumption capacity of the Lao people.

Enhancing the trust of Vietnamese goods in Laos

Build your distribution channel

Although Vietnamese goods have a certain position with Lao consumers, in order to improve their competitiveness with Thai or Chinese goods, Vietnamese businesses still need a strategy to invest in more distribution channels. distribution, long-term business to promote exports.

Vietnamese businesses need to establish a distribution network not only for Vietnamese goods but also for some other countries. "The development of an effective distribution system needs to be done in the direction of traditional development in markets, then supermarkets, because this is still a shopping channel used by many Lao people."

Build your brand

The Ministry of Industry and Trade encourages enterprises to promote business and trade in Vietnamese products to the Lao market in the direction of building Vietnamese brands. The building of a Vietnamese brand in the Lao market needs to follow the common goal of building a national brand.

Because most Lao consumers only know Vietnamese products in general, but do not distinguish each product of a separate enterprise, Vietnamese businesses need to pay attention to improving product quality, building brands, and promoting advertising. , improve packaging design, quality oriented to create an impressive image, do business methodically and prestige to create trust with Lao partners.

Help Lao people understand more about Vietnamese products

Distributing food products in Laos, businesses need to change the seasoning of production batches to Laos. Packaging also needs to change, because Lao language will help promote Vietnamese products to Lao people more conveniently instead of using stickers.

For Vietnamese government agencies, it is necessary to have programs to promote Vietnamese culture in Laos to help Laotians understand the country and people of Vietnam, thereby understanding Vietnamese products. At the same time, it is necessary to make more efforts and be more creative in promoting Vietnamese products in Laos. The government should have a policy to subsidize airfares from Laos to encourage Laotians to travel to Vietnam. This not only helps develop the domestic tourism industry but also helps introduce the country, people and products of Vietnam to Lao consumers.

Understanding and taking advantage of agreements

Enterprises need to actively research and deepen understanding of agreements, agreements and commitments within the multilateral and bilateral framework between Vietnam and Laos. This serves as a basis as well as taking advantage of incentives and agreements in business activities of enterprises: tax incentives, fast shipping, etc.

In addition, there must be more preferential policies for Vietnamese goods exported to Laos such as taxes, credits, etc. so that Vietnamese goods can increase their market share in Laos, commensurate with the 60-year relationship between Vietnam and Laos.

In the first 6 months of 2022, two-way trade turnover between Vietnam and Laos reached more than 824 million USD, up 20.6% over the same period last year. This is the key to opening many cooperation opportunities between the two countries.

To overcome the current disadvantages of Vietnamese enterprises when exporting goods to Laos, Indochina Holdings offers trade promotion services, especially our strategic partner is the Consulate General of Laos in Ho Chi Minh City. Ho Chi Minh City, will help your business solve all difficulties in the process of exporting goods to Laos.

In addition, Indoco Travel - a subsidiary of Indochina Holdings also organizes "Connecting Journey" - an investment tour program that helps businesses have the opportunity to open potential business and investment opportunities in Laos. We always accompany and support to become a solid bridge to open up many cooperation opportunities between Vietnam - Laos businesses, contributing to increasing the bilateral relationship between the two countries.

Cao Duy