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VIETRADE supporting brands in entering South Korea

Released at: 08:41, 24/10/2017 BUSINESS SPOTLIGHT

VIETRADE supporting brands in entering South Korea

Photo: VIETRADE

Vietnam Trade Promotion Agency holds conference within framework of National Branding Program to help local businesses gain traction in South Korea.

by Tue Lam

The Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade organized a conference on October 12 in Hanoi on “Promoting the Development of Vietnamese Brands in the South Korean Market”, within the framework of the National Branding Program to support businesses in approaching the country.

Mr. Do Kim Lang, Deputy Director General of VIETRADE and Deputy Secretary General of the National Branding Program, told the conference that the strengthening of strategic cooperation between Vietnam and South Korea has always been a priority of the two governments. 

South Korea is currently the largest investor and trading partner of Vietnam, while Vietnam is South Korea’s third largest trading partner after the US and China. South Korea is a market of potential and it shares many similarities with Vietnam in terms of culture and business.

Mr. Lang emphasized that the National Branding Program is the only national brand development program approved by the Prime Minister and recognized under the Foreign Trade Administration Act. It is a great opportunity for enterprises who are “national brands” because it also helps increase their prestige in foreign markets.

In order to build a brand in South Korean, Vietnamese enterprises should actively participate in the country’s value chains through distribution channels such as Lotte Mart, 7-Eleven, and E-mart, according to Mr. Le An Hai, Deputy Director of the Pacific Market Department under MoIT.

They also need to address issues such as product positioning, packaging design, and target markets, while also focusing on the domestic market. All of this would help companies ensure distribution systems and develop their brand in foreign markets.

A number of Vietnamese brands are already in South Korea, such as Trung Nguyen’s G7 coffee, which appears on the shelves of large supermarkets. Others, such as Pho Xua Va Nay noodles, Trung Thanh chili sauce, and Nam Ngu fish sauce are sold via informal distribution systems. “There are products from Vietnam but foreign brands are being sold and are preferred in South Korea,” Mr. Hai said.

For his part, Mr. Yoon Sang Ho, President of the Korea Federation of Small and Medium Business Associations, said that South Korean customers prefer to choose brands they are familiar with, so building a durable brand is important. “Enterprises should study the habits of South Korean consumers,” he advised. “New Vietnamese brands have already made a mark on shopping habits.”

The conference attracted a great deal of attention from organizations and enterprises and contributed to increasing export opportunities for Vietnamese enterprises and promoting brand names in particular and national brands in general to the South Korean market.

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