Vietnamese enterprises still lack methodical steps in their competition strategy as well as experiences in penetrating targeted markets. Hence, much appreciation is given to trade promotion activities which is seen both the need of and challenges toward each business organization. In a bid to provide businesses with a certain understanding about the issue more, VIB Forum has a talk with Luu Tat Thang, Director of the Centre for Trade Promotion under the Hanoi Trade Department. 

Do you think trade promotion activities of Vietnamese enterprises remain poor and unmethodical? 

Trade promotion plays a crucial role in the performance of each business but it has only been given attention in Vietnam for three to four years now, resulting in poor general understanding of local businesses and the consequently poor investment in this activity. Annually, we hold many seminars and supplementary training courses on trade promotion for enterprises to gain certain results. However, there remain some difficulties like low numbers of participants and enterprises unable to find relevant partners. Such seminars, exchange meetings or training courses are therefore a waste of time and effort.

So what is the solution to this?

We will organize more specialized supplementary activities, going straight to specific subjects. These subjects will have thorough and complete links with each other, including sales promotion, marketing, market exploration, displays and trade fairs. Enterprises are permitted to join them only after registration. This year, we will ask for financial assistance from the municipal authorities to build free websites for enterprises. This is necessary as not many enterprises have their own website.

However, in trade fairs abroad, Vietnamese enterprises mainly focus on selling goods but do not take this opportunity to seek partners. Are these fairs just nominal?

In fact, every promotion program has a clear content and purpose. The purpose of trade fairs is to help enterprises sell their goods, seek partners and expand their market. The efficiency of work does not depend on the nature of the fair but the way to better promote each business. With financial support coming in part from the State and our organization, enterprises also have to prove themselves. In such fairs, enterprises can bring along catalogues introducing their business and import-export items. Through events we organized, two thirds of participants succeeded in making sales and finding partners.  

What about market exploration and product display?
In 2004, we organized five groups of local businesses to explore foreign markets, which helped provide detailed information about their partners. We also held 14 exchange meetings between Vietnamese and South Korean and Japanese enterprises with 50 participants in each meeting. Many programs gained positive results thanks to careful preparation.

So what is new in trade promotion activities in 2005?

In 2005, we will combine trade promotion activities of municipal authorities with those of societies and associations. Although the fund has yet to be granted, we have still submitted to the city authorities programs which must be carried out early this year. Of course we must spend out of our own pockets for them. We plan to join a big fair on materials, internal decoration, handicrafts and gifts in Japan. This program, chaired by the Ministry of Culture and Information, is expected to see the participation of around 20 businesses. This is a great opportunity and surely many enterprises will join it.

• Kim Phuong