Establishing a chain of links in the Southeast region

At a recent conference on trade connection and investment promotion between Ho Chi Minh City and the Southeast provinces, leaders of localities discussed strengths and potentials in socio-economic development, listened to opinions, thoughts, and aspirations as well as difficulties of enterprises in expanding production and business scale, strengthening market connection throughout the country.

Binh Duong enterprises introduce products at the conference connecting trade and investment promotion between Ho Chi Minh City and the Southeast provinces

Optimal choice

Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee, said the city wants the Southeast to form a raw material area for Ho Chi Minh City, possibly built by this locality, but based on enterprises’ opinions about production process, geographical indication, input material supply, care instructions, and consumption. Ho Chi Minh City currently needs a lot of raw materials to produce consumer products for export and is also a market for quality agricultural products.

According to Nguyen Thanh Toan, Director of Binh Duong provincial Department of Industry and Trade, the signing between businesses helps open many opportunities to stimulate economic development in the Southeast region. This is also a rare opportunity to help units capture market information, choose investment plans and product production plans in accordance with market demands. Thereby, developing sustainable production in the current process of deep international economic integration.

“Binh Duong wishes to receive sharing from leaders of People's Committees, departments, and branches of provinces and cities, especially corporations, distribution systems, businesses in the Southeast and the South; create all favorable conditions so that agricultural products, products of enterprises have a chance to compete fairly in the distribution system, bringing products to consumers in accordance with the spirit of Vietnamese people giving priority to using Vietnamese goods", said Toan.

At the conference, many opinions about the fact that the OCOP Program has promoted the strength and role of the community in preserving and developing traditional products of each locality. The program also formed a strong start-up movement, especially cooperatives, small and medium-sized enterprises, which have formed many areas of clean agricultural products, high-tech agriculture integrated with product value chain... However, the biggest problem today is the small and weak management capacity of economic organizations in the OCOP Program, lack of knowledge about market economy and product development along the value chain.

Proactive enterprises

Nguyen Thi Thu Hien, External Affairs Director of Central Retail Group (GO! Supermarket!), said that most OCOP producers are small businesses and are not qualified to promote the brand. Local OCOP products are difficult to sell at local supermarkets because there are many outsiders. Supermarkets always support OCOP products but need local support in gathering products and instructions on standards for suppliers. At the conference, Central Retail signed six cooperation agreements with units, including Kim Long Hi-tech Cooperative (melon, longan, pineapple) of Binh Duong.

Hoang Long, Director of the Southeast Region and the Central Highlands of Saigon Co.op, said that in the future development plan, this group aims to set up at least a commercial center in each district in the Southeast provinces and cities. In order to bring products, especially agricultural products, into the supermarket system of Saigon Co.op, producers need to ensure the standards and criteria as prescribed.

A representative of Tiki e-commerce platform said that for large distribution enterprises, the pressure on sales will also be great. Therefore, businesses need to carefully study the market and consumer demands before putting their products on the platform. E-commerce platforms are a playground for all businesses. Therefore, businesses and cooperatives need to convert appropriate commercial forms.

Enterprises said that there are still many difficulties, so there is a need for an intermediary do the connection; and hope that the government will support capital, training in corporate and cooperative management, knowledge of the market economy, and support for sustainable brands. In addition, there must be areas specializing in selling new and necessary products that can form markets. In addition, bottlenecks between Ho Chi Minh City and the Southeast provinces, especially traffic, need to be connected, creating a favorable flow.

Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee: Building brand of OCOP products is to create a wide network, local authorities do a good job of connection, businesses, distributors, and producers must have close relations. There must be booths, areas to sell products locally, distributors must calculate regularly to supply and sell products locally. If you don't form a zone, you can't go far.

Nguyen Thanh Toan, Director of Provincial Department of Industry and Trade: We wish Binh Duong enterprises and other provinces and cities to strengthen cooperation and support in finding solutions to raw material supply for each other to increase the circularity of products. Thereby, reducing intermediaries and transportation within the supply chain, ensuring a sustainable regional link in the future. Provinces and cities shall join hands in formulating regional development strategies, especially planning for planting and production areas suitable to each locality, strengthening business linkages, and jointly promoting sustainable socio-economic development of the region.

Reported by Tieu My - Translated by Ngoc Huynh