At the conference “Promoting Seafood Consumption to Meet Domestic Demand,” experts recommended that seafood businesses should focus on and better exploit the domestic market – Photo: VGP |
This suggestion was made by numerous experts at the conference “Promoting Seafood Consumption to Meet Domestic Demand,” held in Ho Chi Minh City on August 1 by the Ministry of Industry and Trade in collaboration with relevant parties.
Untapped Potential in the Domestic Market
While Vietnam is one of the leading seafood exporters in the world, it is currently ceding its domestic market, with local businesses holding only 60-70% of the market share in distribution channels.
According to the Ministry of Industry and Trade, given the unpredictable fluctuations in the global export market, the domestic market of over 100 million people presents a strategic opportunity for the Vietnamese seafood industry to maintain stable and sustainable growth, provided it is effectively tapped.
Sharing this view, the Vietnam Association of Seafood Exporters and Producers (VASEP) asserted the increasing strategic importance of the domestic market in the long-term sustainable development of businesses. Integrating domestic consumption with exports can help businesses optimize costs and raw materials, thereby enhancing their competitiveness.
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Experts advised that seafood businesses should focus on and better exploit the domestic market. |
Seafood Exporters Face Challenges in the Domestic Market
Despite the potential, domestic businesses struggle to find their footing in the local market. According to Mr. Nguyen Thanh Nam, Deputy Director of the Department of Domestic Market Management and Development under the Ministry of Industry and Trade, the scale of the domestic market reaches approximately 1 billion USD, but imported seafood accounts for 40% of this.
In reality, many well-established exporters face challenges when competing in the domestic market. Several businesses shared that their export-quality products are priced 20% higher in the domestic market, making it difficult to compete with other products, especially in traditional markets.
Mr. Vo Tran Ngoc, Sales Director of Saigon Co.op, explained that the seafood sector in the domestic market, particularly in the supermarket channel, has significant growth potential due to increasing domestic consumption. However, domestic seafood consumption remains low compared to its potential due to factors such as competition from traditional markets. The quality of seafood in small, unregulated markets is often unclear, and their prices are lower. Consumers are accustomed to buying seafood from these traditional markets instead of supermarkets, where similar products are sold at higher prices but with assured quality.
Additionally, according to experts, the lack of connection between production and distribution has led to a fragmented value chain in the domestic seafood industry, hindering the full exploitation of the home field advantage.
Supporting Businesses to Stimulate Domestic Consumption
Given this situation, Mr. Tran Huu Linh, Director of the Department of Domestic Market Management and Development, Ministry of Industry and Trade, shared that the government has directed the Ministry of Industry and Trade to develop a proposal to stimulate the domestic market, with a focus on increasing the market share of Vietnamese goods, including seafood, in distribution and retail channels. To achieve this, the Ministry of Industry and Trade has actively collaborated with relevant units to connect production and market, providing support to different links in the industry chain.
Seafood businesses also need to shift their mindset and focus on researching and better exploiting the domestic market. Distributors should prioritize Vietnamese seafood in their systems and strive to increase the consumption of locally produced seafood while maintaining quality control from input to output. Mr. Linh emphasized that the Ministry of Industry and Trade, as a bridge between production and consumption, will continue to support businesses in effectively exploiting the domestic market.
– 16:00 02/08/2025
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