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Rural fairs big boost for economy
Manufacturers are learning that people in rural districts do have money to spend
Mobile fairs have been successfully introduced in some rural areas to promote local goods now that export markets have shrunk due to the global economic crisis.
Fairs have already been held in southern provinces of An Giang and Tra Vinh and central province of Khanh Hoa. More are planned for Binh Dinh Province, Vinh Phuc and Bac Giang provinces this month.
A fair in Tra Vinh province on June 19 earned participating businesses a turnover of more than VND780 million (US$43,680). Another in Khanh Hoa province had a turnover of more than VND750 million ($42,000), reported the Business Studies and Assistance Centre (BSA), co-organiser of the event.
"The model of bringing locally-made-products to rural areas focuses on training local retailers, organising sales and connecting businesses with local retailers," said BSA Director Vu Kim Hanh.
Rural sales are becoming an important source of revenue, she said, adding that money from the fairs was not great, but it opened up an opportunity for businesses to find a long-term foothold in rural markets.
"Rural people account for more than 70 per cent of the country’s total population," Hanh said.
She said the living conditions of many rural people had improved in recent years, leading to increasing demand for high-quality products. This created opportunities for businesses to develop their trade in rural areas.
Senior official from the Central Institute for Economic Management, Vo Tri Thanh, said workers flooding back home because of the economic crisis had led to an increase in consumption in rural areas, especially for basic commodities.
"The organisation of fairs to introduce Vietnamese products in rural areas is a good way to boost consumption, however, most rural people are low-income earners so the Government should give them financial aid or offering them vocational training and boosting investment in agricultural technology," he said.
"Boosting marketing for made-in-Viet Nam products to rural areas has brought in encouraging business results," said deputy general director of the supermarket network of the Viet Nam National Textile and Garment Group (Vinatex Mart) Tran Thanh Nhan.
Deputy General Director of the Northern Kinh Do Food Joint Stock Company, Pham Van Minh, said rural people liked to buy goods sold near their houses, even in small alleys, at tea shops or canteens, instead of going to big cities. Therefore, basic consumer goods had to be brought closer to rural consumers, he said.
"Our company is focusing on tapping markets that used to receive little attention before, including rural areas," he said.
Luong Thu Huong, a customer in Khanh Hoa Province, said it was not easy to get access to high-quality Vietnamese products. "The majority of products sold here are from China," she said.
The Ministry of Industry and Trade actively supported the campaign to promote Vietnamese goods to Vietnamese people throughout rural areas, deputy minister Nguyen Cam Tu said at a recent conference on market and trade promotion.
However, Director Hanh said businesses still faced many challenges setting up a foothold in rural markets.
"Smuggled commodities are flooding rural areas - and they have the advantage of being cheap," she said.
"Cheapness attracts consumers. Therefore, businesses and producers at our trade promotion fairs always offer discounts and gifts to attract customers," she said.
Hanh said businesses must be committed to offering high-quality products in rural areas.
Marketing policies
However, products should be offered at low prices because most rural consumers were low-income earners, she said.
Director General of the My Hao Chemical and Cosmetic Joint Stock Company Luong Van Vinh said trade fairs should be held regularly to help businesses set up firm rural networks.
Local authorities should help businesses survey the needs of rural consumers and create favourable conditions for them to expand sale networks, including the provision of business licences.
Hoang Tho Xuan, head of the Domestic Market Policy Department at the Ministry of Industry and Trade, said the ministry would provide information on domestic markets and raise the interest of domestic consumers in locally-made products.
vietnamnet, vietnamnews
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