Despite current tough economic headwinds, Vinh Tuong Industrial Corporation has seen its export revenue totaling VND30 billion, or a 30% year-on-year growth rate, said Tran Duc Huy, general director of the corporation.
Vinh Tuong’s products such as ceiling boards and drywall panels have been exported to many countries worldwide.
Since the company developed a plant in Cambodia, it has accounted for a market share of 60% in this market. The manufacturer later expands its operation to untapped markets such as Myanmar, Sri Lanka and the Philippines.
There is little chance of success for a business to tap into new market on its own, according to Huy. If it does succeed, the firm only captures a small market share as many existing companies have entered the market for years.
Thus, enterprises must cooperate with local distributors to jointly share their business values. The fact that Vinh Tuong conducts market surveys with its overseas partners before entering a new market has brought success.
For instance, when launching its products on the Cambodian market, Vinh Tuong has chosen three largest local distributors. The company later retains two of them as they make up 80% of the overall market.
Vinh Tuong allows its overseas distributors to manage their activities. “They understand local customers’ needs and organize training programs as well as remove bottlenecks in law compliance,” said Huy.
The Saigon Times Daily