22-01-2024

BARRIERS TO AGRICULTURAL ENTERPRISES ENTERING THE WORLD

VIETNAMESE AGRICULTURAL BUSINESS STEPPING INTO THE WORLD: WHAT BARRIERS NEED TO BE OVERCOME? 

As a country with strengths in agriculture, Vietnam has significant potential for agricultural economic development. In recent years, Vietnam's agricultural exports have achieved encouraging results, with continuous growth and reaching the highest level in 2022. However, to continue growing and expanding export markets, Vietnamese businesses need to overcome existing barriers.

1.Scale Barriers 

Vietnamese agricultural businesses are primarily family-owned and individual enterprises, accounting for about 80% of the total number of agricultural businesses. These businesses often operate on a small scale, lack capital and experience, resulting in low productivity, poor product quality, and high costs. This is the reason why Vietnamese businesses face challenges in accessing potential export markets and struggle to meet the strict requirements of the international market regarding quality, design, packaging, labeling, and branding. 

2. Product Quality Barriers 

Currently, Vietnamese agricultural products still lack scientific and technical applications, leading to limitations in terms of quality, design, packaging, labeling, and meeting the requirements of the international market. This barrier makes Vietnamese agricultural products face difficulties in accessing export markets and competing with products from other countries. 

3. Brand Barriers 

Vietnamese agricultural businesses have not focused on building brands, investing in marketing, and promoting their products. As a result, their products are not clearly positioned in the international market, lacking a strong brand to compete with foreign products. Therefore, Vietnamese agricultural products encounter challenges in accessing potential export markets and establishing trust with international consumers. 

4. Market Barriers 

The current situation is that Vietnamese agricultural businesses face difficulties in accessing export markets due to a lack of information about potential markets, not understanding consumer demand, and having limited relationships with foreign partners. 

5. Legal Framework Barriers

The legal regulations regarding import-export, intellectual property protection, plant and animal quarantine in Vietnam are not yet standardized and aligned with international practices, causing difficulties for agricultural businesses in exportation. 

To overcome these barriers, Vietnamese agricultural businesses need to proactively seize opportunities, study the challenges of the international market, actively innovate techniques, and enhance their competitive capabilities.