Cao Phong Oranges: Overcoming Export Challenges

Cao Phong oranges are a famous agricultural product from Hoa Binh Province, grown under safe and clean methods that adhere to VietGAP and GlobalGAP guidelines, making them eligible for international export.

Dinh Cong Su, the Vice Chairman of the Hoa Binh People’s Committee, mentions that despite their quality, Cao Phong oranges, like other Vietnamese agricultural items, struggle to find a foothold in both national and international markets.

They have a hard time competing with foreign products and are yet to establish a strong and sustainable brand recognition among consumers.

In July 2021, the Vietnamese Ministry of Information and Communications launched Decision No. 1034, aiming to utilize e-commerce to broaden the global reach of Vietnamese agricultural products.

Two domestic e-commerce platforms, Postmart (managed by Vietnam Post) and Voso (operated by Viettel Post), were designated to aid in the online sale of these products.

A successful example was in June 2021 when Voso facilitated the export of over three tons of lychees to Vietnamese communities in Europe, marking a key advancement in the e-commerce export of fresh agricultural items.

Currently, more than 5.5 million accounts from farmers, cooperatives, and businesses are active on Postmart, offering around 150,000 different products. A substantial volume of agricultural goods has been sold both domestically and internationally, even during the COVID-19 pandemic.

Despite these advancements, the role of Vietnamese e-commerce platforms in agricultural exports is still relatively minor. Some platforms like Voso have had to halt operations that primarily focused on regional specialties.

Addressing Unique Challenges

Tran Minh Tuan, head of the Digital Economy and Digital Society Department at the Ministry of Information and Communications, highlighted that agricultural products face unique hurdles due to their short freshness lifespan.

He recommended drawing from global best practices, such as China’s approach to combining online and offline systems to enhance consumer accessibility to agricultural goods.

With China being Vietnam’s largest agricultural product market, there is an opportunity to connect Vietnamese e-commerce platforms with major Chinese counterparts. This could direct connect farmers and businesses with Chinese consumers, mitigating reliance on intermediaries and risks like price drops.

Various initiatives are underway, including the establishment of bonded warehouses in Lang Son, Binh Duong, and Da Nang. These facilities allow Vietnamese farmers and businesses to complete customs procedures for exports with Chinese authorities locally, reducing losses from rejected shipments and cutting logistical expenses.

Tuan also advocated for partnerships with Chinese import-export companies to create export centers that meet Chinese standards, enhancing the accessibility and competitiveness of Vietnamese agricultural products.

Although this may require revenue-sharing with foreign partners, such collaborations could provide important insights into technology and operations, making it easier for Vietnamese products to penetrate markets in Europe and the United States.

Utilizing Digital Tools for Marketing

Tuan urged Vietnamese agricultural e-commerce platforms to take advantage of broadband internet by leveraging livestreaming to promote their products.

“Livestreaming serves not only to sell items but also to highlight local cultures, enhance tourism, and provide job opportunities for local residents,” he remarked.

Vietnam Post has recently introduced the Nong San Buu Dien platform (nongsan.buudien.vn) and is collaborating with TikTok Vietnam to bolster these initiatives.

This partnership aims to share countless stories about Vietnamese agricultural products globally. With over 8,000 post office branches and 10,000 employees throughout the country, Vietnam Post plans to weave storytelling into e-commerce practices.

In early 2025, a campaign will start to train post office staff in creating videos that showcase their local products and communities. The objective is to develop 2,000 ambassadors by the close of 2025 to globally advocate for Vietnamese culture and agriculture.

By blending innovative digital approaches with cultural narratives, Vietnam can increase the visibility and value of its agricultural products, attracting a broader global audience while also benefiting local communities.