In 2010, the Prime Minister of Vietnam signed a decision to improve the quality of Vietnamese products and goods by 2020 to promote the quality of the products of Vietnam when integrated into the global market economy. Currently, the quality of Vietnamese products is evaluated based on the advanced management systems of the US and EU, such as ISO 9000, ISO 14000, TMQ, GMP, Q.base, and HACCP, which are recognized in global markets. However, the story of the quality management of businesses is still controversial.
Will ISO- certified enterprises manufacture ISO products?
The ISO- certified enterprises find all ways to prove that they have the ISO certification. Some enterprises are trying to emphasize that their products are certified to be ISO products to make an impression with consumers. What few people know is that the ISO certificate does not give any specific product, but is for enterprises or parts of enterprises with a quality management system in accordance with the requirements of the international standards ISO 9001: 2000 (or ISO 9001: 2008). And of course, despite being the ISO-certified enterprises, the products of the enterprises manufactured by technological chains of the US, Japan, and Europe have different quality from the products manufactured by production lines of China.
In the context that the quality of Vietnamese products are problems facing consumers and manufacturers, the ISO system does not meet the expectations of many business owners; the certificates are only passports to help enterprises to meet basic mandatory requirements by some foreign partners or qualifications to brag before customers, rather than a confirmed determination to maintain and pursue quality to meet real requirements. Many ISO documents have been prepared only to meet the requirements of "must have" but not to increase the efficiency and effectiveness of businesses; the business owners do not pay proper attention to ISO and the ISO certificates are considered jewellery for public affairs rather than an internal solution to improve the performance of organizations.
According to Pho Duc Son, Director of Vietnam Quality and Standard Institute, many enterprises do not understand properly about the ISO so they put too much expectation on the ISO and then feel disappointed. ISO is not a magic wand that can solve all the problems of production and business activities, or business operation and management activities in general. The ISO only give general requirements and instruction for a quality management system to help businesses gain the ability to provide products with stable quality and meet customers' needs and legal requirements including regulations under the Act rather than a comprehensive solution covering all the important issues of the business such vision, mission, goals, strategic direction and corporate strategy, business strategy, organizational structure, management and operation principles, operating, and other problems in human, environment, and corporate culture. Even when the products made meet requirements of quality, there are no guarantees that the product will be sold well unless the business adopts effective branding and marketing plans and after-sales services. Not all of the enterprises with ISO certification are equipped with sufficient elements to run a comprehensive business management system.
The ISO alone can not help turn a weak business with many problems into an efficient business.
Nguyen Manh Hung, Vice President and General Secretary of Vietnam Standards and Consumers Association (VINASTAS), said that there should be more forums to evaluate the effects of actual construction and application of ISO in Vietnamese enterprises, like are conducted on the forums on corporate culture and brand building. If the solution does not bring effective results to the enterprises, we need to re-evaluate the use of the solution or solution providers.
Upscaling standards of Vietnamese products
The facts show that the number of Vietnamese goods does not meet customer demand; according to the Consumer Association, the Vietnamese market is delicious pie for foreign retailers, the growth of imported goods in Vietnam for 5 years average has increased 21.3 percent per year. This shows that the Vietnamese goods has not satisfied its customers.
According to Nguyen Manh Hung, Vietnamese producers need to think about how to improve the quality of the domestic product rather than worrying about market share that will be occupied by foreign producers. More importantly, how will the domestic enterprises produce better quality products with more competitive prices? How can they meet the criteria "Vietnam products have high quality"? For a long time, Chinese products have been prevailing over the market; many items are imported to Vietnam, such as toothpick, wipes, plastic toys, clothing, footwear, beverages, and confectionery. Since then, the domestic products have been back to the market; however, the materials used to produce Vietnamese goods are imported; beside, the quality and design of Vietnamese goods are inferior to some goods of other countries, especially the products of Thailand that are easily imported to Vietnam through Cambodia and Gulf of Thailand. The products of Thailand are better than Chinese products in term of quality and design. Some Vietnamese goods such as plastics, textiles, agricultural products, and food are better than Chinese goods; however, if the enterprises do not continue to improve the quality and design of the products and reduce costs of the products, the Vietnamese goods will not compete against the foreign goods from Asia, Europe, and the U.S.; particularly, Vietnam is committed to eliminating barriers such as tariffs after joining free trade agreement, the Trans-Pacific (TPP), ASEAN-EU, Vietnam- EU, Vietnam- South Korea, ASEAN-Canada Alliance, Vietnam - EFTA, Vietnam- Customs Union. This will help a large number of leading retailers to bring in goods and obtain market share in Vietnam.
Besides, Vietnamese enterprises have not adopted marketing strategies effectively to promote the advantages of domestic goods. Vietnamese people also tend to prefer using foreign products because of bias with domestic products, which leads to biased consumption behaviour of Vietnamese people. To revive the Vietnamese trade, Vietnam needs a lot of efforts to change business mindset of manufacturing products of manufacturers, distributors and traders, and especially, the government should adopt the right strategies consistent with the integration trend.
Do Ngoc