There is now even a trend of selling and buying Thai products in retail outlets in Da Nang City. This is motivating Vietnamese enterprises to be more aware of the challenges they are facing.
Vietnamese customers are now being offered a greater variety of products from other countries, including Thailand. With the intra-ASEAN tax of zero per cent, Thai products, ranging from jars of salt to automobiles, have an advantage in the Vietnamese market. Even advantaged industries in Vietnam such as garments and textiles are being affected.
"I think the prices are acceptable and the products are durable. My children like them a lot." - Customer, Da Nang City
In the first quarter of 2016, Vietnam’s deficit in trade with Thailand reached nearly one billion US dollars. Thai products are scoring big in the Vietnamese market. However, the criteria used by customers remain the same, which are quality, price and models. Vietnamese manufacturers should base their production upon these criteria to engage in the current fierce competition.
"Vietnamese enterprises need to integrate further by improving their competitiveness. They should focus more on long-term businesses and look more closely into their issues. Raising product quality and enhancing customers’ confidence in their brand names should also be prioritised." - NGUYEN VAN HUNG, Vice Director, Da Nang Institute for Socio-Economic Development.
Low-cost products from China for a long time used to dominate the domestic market. But now, as living conditions have markedly improved, customers have more access to imported products from other countries such as Thailand, Japan and the US. This should urge Vietnamese retailers to be more active in competing with foreign rivals.
