While some billion-dollar export industries are facing challenges, many Vietnamese food startups have found success by targeting niche markets.
This insight was shared by businesses at the talk show “Golden Opportunity for Export Startups” organized by LNS International Corporation in collaboration with CT Choice and Ca Men in Ho Chi Minh City on November 15.
Starting with a small restaurant in Ho Chi Minh City offering Quang Tri specialties such as banh uot (steamed thin rice pancakes) with pork, rice flour porridge with duck, and snakehead fish soup, Công ty TNHH Sản xuất Thương mại Ca Men (Ca Men Trading & Manufacturing Co., Ltd) has now extended its reach beyond regional boundaries and onto the global stage.
Nguyen Duc Nhat Thuan, the founder of Ca Men, shared that since June 2023, Ca Men began collaborating with LNS to officially export packaged snakehead fish rice porridge to the U.S. market. As of now, Ca Men has shipped three containers of this product, valued at approximately VND 5 billion. Currently, Ca Men and LNS are working on exporting packaged products to Japan and Europe. In addition, Ca Men has connected with partners that export consumer goods to other markets, including Canada, Singapore, Australia, and New Zealand.
“The difficulties in the export-import sector are now posing significant challenges, particularly for startups. However, Ca Men’s advantage lies in its unique product that caters to the nostalgia of many overseas Vietnamese for the flavors of home. Despite being a small-scale producer, Ca Men has been meticulous from the outset, making it easier to meet import standards,” Nguyen Duc Nhat Thuan added.
Another Vietnamese specialty making its way into the global market through niche channels is coconut nectar from Tra Vinh Farm (Sokfarm). Pham Dinh Ngai, Director of Tra Vinh Farm, stated that the challenging market environment and fluctuating consumer demand present both challenges and opportunities for startups.
Large enterprises face significant impacts due to sharp declines in orders and a sudden contraction of market size. However, smaller-scale businesses with new products can adapt to changing consumer trends to grow their markets.
Post-COVID-19 and amidst economic difficulties, consumers both domestically and internationally have become more health-conscious, prioritizing healthy foods. Sokfarm’s main product, organic, vegan-friendly coconut nectar, is an excellent healthy sweetener.
In the Vietnamese market, while end-product distribution has dropped by about 20%, demand for organic sweeteners as ingredients in other foods has increased by about 30-40%.
Regarding exports, Sokfarm has been receiving positive signals, suggesting its products could expand further. Since 2019, Sokfarm has exported coconut nectar to Japan, followed by the Netherlands and Germany. In October 2023, Sokfarm marked a milestone by exporting its first order of coconut nectar to the U.S., where it is now available in distribution systems. Through international food exhibitions, Sokfarm has also attracted interest from potential customers in China, providing a solid foundation for growth and market expansion in the coming years.
According to Pham Dinh Ngai, the advantage of startups lies in their flexibility and adaptability to market changes. Targeting niche markets allows these businesses to avoid direct competition with larger companies. Additionally, by staying attuned to trends and investing in research and development of new products, startups can lead small, yet valuable and economically efficient, market segments.
Huynh Phuoc Nghia, Director of the Center for Economics, Law, and Management (University of Economics, Ho Chi Minh City), observed that an increasing number of food startups are finding success not only in the domestic market but also in exports. In startup thinking, besides taking risks, deep research knowledge is essential to create high-quality products based on local resources, rather than relying on exporting raw materials and importing finished products.
“Political or trade conflicts create new shifts, making this a sensitive yet favorable time for startups to join supply chains. Opportunities or market spaces are not readily available but are created from consumer needs. New products can create new markets. To avoid limiting their development scope, startups need to think about meeting the highest standards from the beginning and then expand into other markets. Building a brand in the digital age is relatively easy, but it requires precision from the start, as information spreads very quickly nowadays,” Huynh Phuoc Nghia shared.
Jolie Nguyen, President of LNS International Corporation, stated that the global economy in 2023 faces many difficulties and challenges due to prolonged geopolitical conflicts. While global inflation has cooled, it remains high. Major economies, including Vietnam’s key trading partners, have slowed down, with some even entering recession.
This has significantly impacted many businesses, especially in the export-import sector. However, overall, there are still bright spots for Vietnam’s food and agricultural sectors. Besides basic food products such as rice, vegetables, and fruits, which are growing well, the demand for Vietnamese dishes and regional specialties is increasing in many markets such as the U.S. and Europe.
Vietnam’s advantage in this field lies in the diversity of raw materials and processing methods. Moreover, the sizable overseas Vietnamese community, around 7 million people, serves as the first target market, acting as “ambassadors” introducing Vietnamese specialties to both Asian and local consumers.
In particular, the U.S. market, where approximately 3 million Vietnamese reside, has a high demand for distinctive Vietnamese agricultural and food products. This market also boasts a diverse and widespread distribution system, ranging from traditional markets, convenience stores, and mini-marts to hypermarkets.
“As an import-export company, LNS International Corporation prioritizes developing specialty products made from Vietnamese agricultural products that are natural, healthy, and safe for consumers. Currently, products distributed by LNS are available in over 1,000 supermarkets and food stores across the U.S. Additionally, LNS has developed a weekly cross-state food truck model, bringing Vietnamese products closer to American consumers,” Jolie Nguyen shared.
