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Foreign household appliances overwhelm domestic market

Vietnamese household-appliance companies are concerned that ASEAN-imported products will dominate the local market, especially in traditional markets and supermarkets, in the near future.
Vietnamese household-appliance companies are concerned thatASEAN-imported products will dominate the local market, especially intraditional markets and supermarkets, in the near future.

Big Csupermarket in Ho Chi Minh City’s Phu Nhuan District, for example, sellscups, glasses and dishes imported mainly from Thailand. Only a fewVietnamese brand products can be found on shelves.

Similarly,imported household appliance products in bulk are showcased at Maximarksupermarket in District 10, with 80 percent of them from Japan, Chinaand Thailand.

Co.op Mart and Lotte supermarket are full ofplastic household appliance products from Thailand such as trays, bowls,washing-basins and tissue boxes.

Hundreds of blenders and ricecookers under the brand name of Philips, Sharp and Panasonic, sourcedfrom China, Indonesia, Malaysia and Thailand, have become more popularwhile Vietnamese products can be counted on the fingers of one hand.

ConsumerThanh Hang from Binh Thanh District said she wants to give priority tolocally-made products but was disappointed about designs offered bydomestic businesses.

Not only supermarkets but also retail storeshave seen a dominance of foreign imported goods. For instance, at BaChieu household appliance store in Binh Thanh district, importedinduction ovens, electric ovens and rice cookers predominate over localproducts.

The store staff said Malaysian and Thai products havehigher prices than Vietnamese items but are still favoured by consumersbecause of the variety of designs.

Huynh Thi My, GeneralSecretary of Vietnam Plastics Association, said the most worrisomeproblem for plastic home appliances is how to create eye-catchingdesigns to compete with imported products, mostly from Thailand.

Localproducts satisfy demand for cheap costs, but for the long term, theywill not have a sustainable competitive advantage, according to My.

"Domesticbusinesses are now ‘winners' surpassing Thai in medium- and low-costsegments, but if the economy develops well and people's livingconditions improve, some consumers will possibly shift their options touse imported luxury products," she said.

Among 300 plastichome-appliance businesses, there are 10 large enterprises with theirlarge production scale that can meet the demands and tastes of consumersin big cities.

Truong Dinh Truong from My Linh Nhi Co. inDistrict 12, which specialises in imported Chinese glass items andThailand plastics for re-distribution, said thanks to easy imports andtax exemptions, many companies are operating in this sector.

"Thaiplastic home appliances are priced 10-15 percent higher than localproducts but are still imported in great quantities," he said.

In Ho Chi Minh City, there are now hundreds of companies specialising in transporting imported goods into Vietnam.-VNA

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