Saigon Cigarette Factory Ready for Economic Integration

Saigon Cigarette Factory Ready for Economic Integration 

The competition in the Vietnamese cigarette market is being fought in trademarks. Foreign companies with advantages in high-technology, experienced management and marketing continue to dominate the market. They focus on the high price market and have long-term strategy. While local companies, in addition to contractual production with foreign partners, concentrate on the low price market. With cheap materials, flexible sales and promotion activities, some Vietnamese enterprises could retain footholds in the market. However, in the long term, without investment in equipment and trademarks, they can not maintain their market shares.

Another serious problem is the smuggling of cigarettes. In spite of anti-smuggling policy, it continues in complicated ways. It is clear that the State must take more effective measures forbidding the consumption of smuggled cigarettes in the market, providing modern equipment and incentives to anti-smuggling teams. Local enterprises must also be assisted in upgrading technology and equipment, developing trademarks to increase their market shares and push back the smuggling.

According to bilateral agreements signed with the U.S. and Japan, by 2008, foreign cigarette companies will be free to invest in Vietnam. Therefore, Vietnamese companies have only three years left to consolidate their footholds in the domestic market. One company that has early preparation for this eventuality is the Saigon Cigarette Company.

Saigon Cigarette has a long history of development, prestige and reputation in the domestic market. The factory has upgraded its production line with the highest technology in Vietnam. The experienced workforce has full command of the new technology. Modern technology and traditional methods ensure high quality and the special aroma of the products. The factory has developed famous trademarks such as Vinataba, Du Lich, Hoa Binh, Cotab, Souvenir, Era, Melia, and Saigon. The distribution network has spread nation-wide bringing the products to consumers.

With its capacity and experience, Saigon Cigarette is making sure steps into economic integration. However, there is still much to be done. The factory must continue to retain its traditional markets, developing successful trademarks, increasing the quality and dividing the prices suitable to living standards of the consumers. In its long-term strategy, the company must make the best use of existing equipment and human resources to expand the export with ever-higher quality and trademark.

• Van Luong