Potential and challenges for Vietnamese enterprises to make best use of rural market

Abstract

1. Identifying the potential of Vietnam’s rural market

Potential of rural market today and the coming time includes:

a. Over 71 per cent of the population or around 62 million people live in the countryside, consuming just 27 per cent of the commodities in the retail market.

b. The government’s stimulus policy has facilitated agriculture and rural development

2. Challenges for enterprises in the rural market

a. Selection of appropriate technologies for agricultural products that satisfy the requirements of farmers as consumers.

b. No professional distribution system available in the rural market.

c. The government has not given due attention to rural market after country’s transformation from the centralized planning mechanism into market oriented economy.

d. Vietnamese enterprises are short of capital and skills to access the market.

e. Products of Vietnamese enterprises face a fierce competition from super-cheap and low quality products from China.

3. Requirements for Vietnamese enterprises and some suggestions for the State policy.

Requirements for Vietnamese enterprises

3.1. Establishing a commodity distribution system in rural market and managing it effectively

3.2. Estalblishing an appropriate financial management for the rural market

3.3. Boosting promotion schemes and trade brands

3.4. Ensuring sufficient commodities for many years

3.5. Willingness to carry out big sales promotion for consumers

3.6. The State and enterprises should work closely to boost rural market