Viet Hai Nha Trang Co., Ltd: “Never Lose Your Traditional Identity for Profit”

Post-pandemic economic volatility, input scarcity and unfavorable lending policies are the main reasons why traditional fish sauce companies like Viet Hai Nha Trang Co., Ltd are struggling with hardships. Mr. Pham Thai Hai, Director of the company, said: “The company will gradually find its own path and direction to recover, create breakthrough momentum, and affirm its brand to consumers with products that are imbued with distinctive characteristics and culture of Khanh Hoa, the land of agarwood.”

The company is dedicated to creating high-quality, flavorful fish sauce 

“Full-flavored” products

“Each place has its own way of making and its own taste. Fish sauce must suit the taste of each region and each person. We think that business must be diversified. Those are also the first steps for Viet Hai to leave its mark,” said Hai. At the same time, the company always strives to build a distribution system, promote access to stores, small and large, in the provinces, and expand the market in the Central Highlands and the Central region.

A ‘plus point’ is that, with its ‘slow and steady’ strategy, Viet Hai has actively consulted consumers, and directly analyzed strengths and weaknesses of traditional fish sauce and each of its products. In addition to actively investing in modern machinery systems, labs and factories and building product showrooms for customers to learn about its traditional fish sauces, all Viet Hai products have barcodes (displaying information about processing, manufacture date and origin of fish - salt) and QR codes to ensure transparency and prestige to consumers.

As industrial fish sauce has been popular and developed in recent years, Viet Hai as well as the fish sauce industry has faced the most difficult time. Since the COVID-19 pandemic outbreak, the company has seen considerably reduced demand. Hai cited two main reasons for this. Firstly, to stabilize the market, the government directed producers of essential goods to stockpile goods and many partners stockpiled to balance supply and demand of goods. Sluggish demand from import partners meant that they had also erected technical barriers to select imported goods and hampered Viet Hai’s sales. Secondly, since the pandemic the economy has not fully recovered and people's livelihoods remain affected, so demand for essential goods has weakened.

However, as Mr. Hai said, “Quality and real benefits are what last long. Therefore, the company is making efforts to overcome difficulties. Of course, in this process, we will always adhere to our direction and working motto: Creating the most "full-flavored", clean fish sauce for Vietnamese meals.

Finding ways to preserve and develop traditional fish sauce production

“To survive, we must adapt,” he emphasized. The company is also shaping a new business strategy and finding new consumers by gradually distributing products on both commercial and traditional channels. The company is also selling its products at rest stops on national highways and the North-South Expressway.

This will be an important link, fitting current purchasing trends and consumer trends, for Viet Hai fish sauces to easily reach all customer segments. At the same time, the company will also gradually build high-quality product standards with strict control and quality inspection.

Besides that difficulty, Hai also pointed to a “considerable nuisance” that greatly affects the local traditional fish sauce industry - fish sauce made from anchovies, the main ingredient. China has a huge demand for this fish sauce, making input materials not only scarce but also expensive. Regarding this matter, the Department of Processing and Trade for Agro-forestry-Fisheries Products and Salt Production previously said that the output of anchovies declined, with the catching cost up and the scarcity of ingredients for fish sauce production being serious.

“Making fish sauce is a unique profession. Viet Hai fish sauce is made from only fish and salt, without any chemicals added, so it has a very fragrant odor. This fish sauce must be over 12 months old, the ripe fish sauce is reddened and the unripe fish sauce is not reddened. That is why Viet Hai fish sauce is still favored although it is more expensive than industrial fish sauces. Meanwhile, bank loans must be mature in only six months and the money for repayment must come from customers. This is a difficulty for the company,” he added.

Before this reality, Viet Hai Nha Trang Co., Ltd hoped to receive active support from the government and banks, not only in supporting the company to promote its products but also facilitating it to access credit sources for production reinvestment.

Fish sauce is traditionally used by every Vietnamese family and becomes a symbol of culinary culture. To preserve and develop the traditional fish sauce, producers themselves must endeavor and authorities must care and support. In the coming time, Viet Hai will continue to promote communication, improve product quality and design, and cooperate with restaurants, hotels and rest stops to promote its image to customers and tourists. With the determination of “Never lose traditional identity for profit”, along with effective strategies, the company will certainly quickly regain its form and gradually gain a firm foothold in the market.

By Binh Minh, Vietnam Business Forum