Tina Murphy, CEO of MMTT Professional Services and a seasoned shopper from her years in the U.S., expressed her surprise at the glaring absence of Vietnamese products in American retail. While exploring vast supermarket aisles, it struck her that these essential goods are mostly confined to niche Asian markets.
“As a Vietnamese person, I find this concerning,” she remarked during a recent forum that spotlighted Vietnam’s export capabilities. Recent data indicates that in the first half of this year, Vietnam’s agricultural and aquatic exports to the U.S. soared impressively, with coffee and fruits boasting staggering year-on-year growth rates of 76.4% and 65.5%, respectively, according to the General Department of Customs. Other sectors, including aquatic products and rice, also reported double-digit increases.
However, retail analysts caution that the majority of Vietnam’s agricultural exports are still raw materials, with only a tiny fraction transformed into processed, branded products. Chris Nguyen, CEO of Ocean Marketing USA, emphasized that Vietnamese goods in the U.S. often lack a cohesive national brand identity, making it tough to break into established markets compared to competitors from South Korea and Thailand.
Nguyen pointed to the industry’s structural limitations, citing manufacturers’ constraints in resources and branding investment, which leaves them heavily reliant on importers. “Many countries have dedicated agents or teams on the ground to navigate market nuances, which Vietnamese businesses often do without,” he noted.
Quality assurance remains another hurdle. Tony Luu, director of GPLUS – FDA, revealed that an alarming average of two shipments of Vietnamese food products are rejected daily. The chief culprit? Insufficient compliance with U.S. Food Safety Modernization Act standards, combined with common packaging errors such as missing allergen information or improperly formatted nutritional facts.
To tackle access barriers to American supermarkets, Jolie Nguyen, chairwoman of LNS International, urged Vietnamese food exporters to standardize their production and meticulously adhere to international trade regulations. Nguyen stressed the importance of avoiding a short-sighted approach to sales and instead fostering a reputation built on quality.
“The focus should be on long-term relationships and formal trade,” she advised, suggesting that Vietnamese businesses take advantage of existing export ecosystems for better compliance, market research, and logistics planning.
But the horizon isn’t limited to the U.S. market. Alejandro Gutierrez, growth director at Guval Foods, shared insights from his experience introducing Vietnamese foods to Mexico. Retail giants like Walmart and Costco, he said, are eager for popular items such as rice paper and instant noodles.
Some Vietnamese companies are stepping up their game. Ca Men, known for its traditional frozen packaged foods, has embarked on an ambitious export expansion, targeting over 50 supermarkets in Toronto and already supplying products to California, Texas, Australia, and the U.K. in the past.
In a clever move, Ca Men revamped its packaging from flat packs to eye-catching upright boxes, better suiting the display needs of major supermarkets in the U.S. and beyond. Sunrise Ins has similarly diversified its footprint, sending over 10 shipments of ST25 rice, rice paper, and pho to New Zealand and Mexico every few months.
As Kim Hyo Gil, the director of AFC & Foodil Global, pointed out, Vietnamese products offer competitive quality and pricing, creating a ripe opportunity for expansion beyond their home market. On August 5, Foodil launched an online wholesale food export platform in Vietnam, partnering with LNS Group and Asian Food Connect to facilitate access to over 30 new markets. A spokesperson noted that while entering a new market typically costs around $120,000 and takes a year, the platform’s AI-driven logistics can potentially streamline this process dramatically.
As the world grows smaller and consumers become more adventurous, the call for Vietnamese culinary delights is louder than ever. But with challenges still ahead, the future could be a delicious journey for Vietnamese brands on the international stage.
What challenges do Vietnamese companies face in the U.S. retail market?
Vietnamese companies struggle with branding and market penetration, as their products are often exported in raw form and lack a cohesive national brand identity. Compliance with U.S. food safety standards and packaging errors also pose significant obstacles.
How does the export strategy of Vietnamese food companies differ?
While some companies like Ca Men have actively expanded their markets by adapting packaging and targeting supermarkets, others rely heavily on importers without establishing a local presence or understanding the market dynamics.
What opportunities exist beyond the U.S. for Vietnamese exports?
Vietnamese products are gaining traction in markets like Mexico, with major retailers seeking popular items. There’s also potential for expansion into the Middle East, Africa, and South America as demand grows for high-quality, competitively priced agricultural goods.
