Vietnam Business Forum interviewed Do Thang Hai, deputy director of the Vietnam Trade Promotion Agency, the Ministry of Trade, about Vietnam Expo 2006, one of the biggest trade promotion events in Vietnam, taking place from April 5-9, 2006 in Hanoi.
What do you think about the effectiveness of fair and exhibition activities in Vietnam, in particular Vietnam Expo, in recent years?
So far, the organisation of fairs and exhibitions has become one of the best and most suitable trade promotion activities for both foreign and local enterprises. This is because via this activity, enterprises can make direct contacts and seek partners quickly. The activity has offered enterprises opportunities to introduce their trademarks, goods and services to foreign partners at low costs. Each pavilion in fairs and exhibitions costs enterprises only VND 9 million (around US$560) plus costs for transporting and displaying goods. The overhead cost is low in comparison to the economic effectiveness brought to them by fairs and exhibitions.
At present, Expo is the biggest fair and exhibition event in Vietnam, introducing export items in which Vietnam has great export potential. Under the chairmanship and guides by the Ministry of Trade and the Vietnam Trade Promotion Agency, the Vietnam National Trade Fair and Advertising Company (Vinexad) has organised the event for 16 years. This year’s Expo is themed ‘Vietnam – integration and development.’
What have enterprises achieved via their participation in the Vietnam Expo?
The value of contracts signed during the expos, which are reported by enterprises, depicts partly the achievements of enterprises when they take part in the event. Accordingly, the number of contracts and export value of enterprises have seen a high year-on-year increase. The reported figures are precisely as we usually collate them with figures released by such organisations as KOTRA and JETRO. Also, Vietnamese enterprises’ import value of materials and equipment has increased via expos. At the same time, those enterprises which are successful at expos are enterprises manufacturing most sought-after goods, such as handicrafts, woodwork and footwear products.
As a manager, what do you think about advantages and disadvantages of the organisation fairs and exhibitions in Vietnam?
The biggest difficulty is a lack of infrastructure facilities. Vietnam has not yet had any establishment capable of organising events at regional and international levels. The Giang Vo Fair and Exhibition Centre, despite being the biggest centre of the kind, can accommodate only between 600 and 750 pavilions (indoor and outdoor). Despite being a fair, the place is used for not only goods and product display or exhibition but also other events, including seminars, fashion shows, and song and dance performances. In fact, as the Giang Vo Fair and Exhibition Centre cannot meet the demand for the display area, many events and seminars have been moved to hotels.
The second difficulty is the lack of professionalism of fairs and exhibition companies. Furthermore, enterprises lack skills of making contacts during fairs and exhibitions as many of them join the events to sell their products. Also, their marketing, goods display and preparations during fairs and exhibitions are not good enough.
Regarding advantages, as expo is a traditional event, attracting many famous and experienced enterprises, foreign enterprises are aware that expo is the biggest fair in Vietnam, where Vietnamese enterprises introduce their best products for export.
What should the Government do to boost the development of the organisation of fairs and exhibitions in Vietnam?
To boost trade promotion activities in general and the organisation of fairs and exhibitions in particular, the Government should build fair and exhibition centres, reaching the regional and international standard, in major cities, including Hanoi, Ho Chi Minh City and Da Nang. Also, infrastructure facilities for fairs and exhibitions in other localities should be upgraded. The Vietnam Trade Promotion Agency has co-operated with local and foreign organisations to provide training courses on marketing for enterprises, so as to help enterprises improve their skills for attending fairs and exhibitions, thus improving their trade promotion effectiveness via the events.
Promotion remains weak in Vietnam, so at major fairs and exhibitions, enterprises should improve their promotion activities in foreign countries.
Value of contracts signed during Vietnam Expos (2001-2005)
2001: US$160.12 million
2002: US$211 million
2003: US$253 million
2004: US$275 million
2005: US$286 million
Reported by Phuong – Ly
Vietnamese
