Vietnamese exporters overcome challenges to break open US market

Vietnamese companies are developing the capabilities to export to the US

Le Nguyen Hoa, deputy chairman of Nutifood, said that the company signed a contract with US-based food company Delori in mid-February to export Pedia Plus, a ready-made powdered milk product for anorexic children to the US. It took two years for Nutifood to export the first shipment to the US.

It is crucial for dairy producers to find the right partner. In case of Nutifood, Delori is a perfect match. The US food company has connections with supermarket and retail chains across the US. It specialises in the production and distribution of nutritional products from other countries to California.

Delori has taken all of Nutifood’s products to Michelson Laboratories for independent testing in order to ensure they meet the strict requirements of the US Food and Drug Administration (FDA). It also collected consumer feedback for Nutifood products. As a result, Nutrifood has changed the packaging design for its products to suit the taste of American customers.

In addition to market research and the right partner, Vietnamese exporters need to be able to meet export requirements. Nutifood’s factory was examined based on hundreds of stringent standards issued by the FDA. Meanwhile, the staff in charge of production lines and processing had to receive training and licenses from the FDA.

On the same note, Tran Quoc Manh, chairman and CEO of Saigon Trade & Production Development Corporation (Sadaco), said that wood and wood products are among the five areas that Vietnam makes the highest export revenue in the US.

Despite many upcoming challenges like trade remedy measures, Vietnamese wood manufacturers have made great strides in exports to the US.

To maintain this growing momentum, Vietnamese companies should continue efforts to improve product quality and raise productivity, especially in the context of the Fourth Industrial Revolution.

He noted that US buyers make large booking orders for Vietnamese wood manufacturers, from one hundred to several hundred containers per month. Therefore, Vietnamese companies aim to automate their production lines with robots to maintain consistency, produce high-quality products, and meet delivery schedules.

Meanwhile, Dao Tran Nhan, head of the Vietnam Trade Office in Washington D.C., said that Vietnamese exporters should have strong financial capabilities to complete the large production orders. Also, they should have strong logistics to match the delivery deadlines of US buyers.

He recommended that Vietnamese exporters work with the representatives of US retail chains like Walmart in Vietnam to find opportunities. Trade fairs and exhibitions are other channels for Vietnamese exporters to introduce products to the US and find potential partners.