SATRA Ready to Make Inroads into Japanese Market

State-run Satra has now become a powerful economic group in Vietnam with more than 70 member companies, with revenue of about VND38 trillion in 2012, and a staff of more than 14,000 employees. By promoting its capacity, Satra always plays a key role in formulating the commodity market in Ho Chi Minh City and many other provinces and cities nationwide. Together with the strong development of its modern domestic wholesale and retail systems like Tax Trade Centre, Binh Dien Market, Satra Pham Hung Trade Centre, Satrafoods food store and Satramart supermarket, Satra has participated extensively in Vietnam's active retail market, which has also helped Satra promote the advantages of the quality products of its member companies like Vissan, Cau Tre, APT, Cofidec, AGREX Saigon and Nhabexim.

 

Currently, Satra is building a large-scale modern commercial cold storage facility at Binh Dien Trade Centre, District 8, Ho Chi Minh City, which is expected to go into operation in 2013. Satra’s construction of a cold storage facility not only aims to diversify its service businesses, but also serves as an essential logistics foundation for the commercial infrastructure completion of Binh Dien Trade Centre and Satra system and the completion of food production - trading - supply - warehousing - distribution chain infrastructure, and functions as an important basis for fulfilling the requirements of food quality, hygiene and safety.

 

After managing to gain a strong foothold in the domestic market, Satra has gradually penetrated world markets in recent years with products such as rice, seafood, agricultural products, processed foodstuffs, handicrafts wooden furniture and interior decorations. In 2011 alone, the group’s exports to Japan were worth US$41 million, accounting for a third of its total export turnover. To date, Satra has established trade relations with trusted partners in many countries and regions all over the world like Japan, the United States, Australia, Europe, China, South Korea, South Africa and ASEAN. Especially in 2009, Satra established a representative office in Japan to promote external economic relations between Japan and Satra, in particular, and Vietnamese businesses in general. On the other hand, the Satra representative office in Japan also performs a number of tasks like promoting trade, investment and tourism assigned by the Ho Chi Minh City People's Committee. The opening of the Japanese representative office is of great significance, as it marks a new development milestone of Satra Group and proves that Japan is always a potential target market of Satra. This office also offers effective trade exchange and support for businesses to access Japanese customers in the future.

 

The Japanese market is known for its very demanding requirements for imported goods. All processes must be tightly controlled and quality requirements must be placed on top. Satra, a leading business in Vietnam with well-established prestige and quality, can fully meet the demands of the Japanese market. For Satra and its member companies engaged in the production of agricultural products, aquatic products, processed foodstuffs, garments, woodwork and handicrafts whose export revenues make up for large percentage, technical standards, food safety, labelling and packaging requirements are prioritized. For that reason, Satra is confident when setting foot in this difficult market.

 

Apart from focusing on brand building in the Japanese market and exerting powerful internal forces of member companies, Satra has signed cooperation agreements with some large, reputable Japanese companies. Specifically, Satra is working with Mitani Sangyo Company to carry out two focused cooperation programmes: Selecting Japanese functional foods to distribute in Vietnam, and gradually studying and using raw materials, additives and nutrients to make healthy products for the domestic market. In the near term, Satra will selectively launch three key products containing NAG (N-Acetyle Glucosamine), Collagen, DHA and phytosterol substances, namely N-Acetylgucosamine, Pure Ceramide and Collagen Plus. These items are popular, trusted and widely used in Japan. Besides, Mitani Sangyo will also provide all materials for Satra to cooperate with domestic manufacturers to create Satra-branded foodstuffs contained collagen, phytosterols, Nag and DHA, which are distributed to the market by its member companies.

 

Satra’s strengthened cooperation with Japan not only helps Satra gradually assert its name there, but also promotes trade and supports Vietnamese enterprises entering this potential market on the legal basis of Vietnam - Japan Economic Partnership Agreement passed by the Japanese National Diet in June 2009.