Vietnamese businesses have responded well to the “Vietnamese Using Vietnamese Products” campaign since its was launched a year ago and they have achieved significant results.

The sales of domestic products such as garments and textiles, food, and confectioneries have seen sharp increases and consumers now have more options.

In the second phase of the campaign, most domestic businesses hope they will enjoy an even sharper growth rate of about 13.6 percent, twice as much as in 2010.

More than 60 million people live in rural area in Vietnam which is a great potential market and consumers have had more chances to buy high-quality products through campaigns to bring Vietnamese goods to rural areas. It has created impetus for businesses to improve their products to meet consumer demands.

According to the Ministry of Industry and Trade, there have been 68 campaigns to bring Vietnamese goods to rural areas with the participation of 857 businesses and they have attracted 4.7 million customers with a turnover of VND1,500 billion.

Pham Duc Tien, Deputy of the Hanoi municipal Department of Industry and Trade (DoIT), said in addition to promotions, the city recently held two campaigns to bring domestic products to 31 trade fairs in seven suburban districts.

Many manufacturers have also opened retailers in rural areas, said Tien.

Representatives of many provincial DoIT agree there should be a long-term policy to ensure further success.

Tran Vinh Nhung, Deputy Director of Ho Chi Minh City DoIT, said his department is working closely with other DoIT in the southern key economic region to create a supply of Vietnamese products to meet consumer demands and stabilise prices.

Ho Chi Minh City will focus on establishing a network of retail outlets and commercial centres in high-demand areas like industrial parks and suburbs, Nhung said.

Binh Duong DoIT Director Nguyen Thi Dien said although the province has held 17 trade fairs in rural areas and industrial parks, each with a turnover of more than VND1 billion, they have not met all consumer demands. Therefore, businesses should work with the DoIT to make the campaign more effective.

Dien also suggested promoting a “Vietnamese Product Week” to support local campaigns.

Minister of Industry and Trade Vu Huy Hoang said his ministry has agreed with the Vietnam Cooperative Alliance on a pilot programme to encourage agricultural cooperatives to become distributors for businesses.

If successful, the model will then be expanded nationwide, Hoang said.

Dinh Thi My Loan, Secretary General of the Vietnam Retailers Association, said as traditional retail models still hold the lion share of the market in Vietnam, her association will try to expand in different directions.

Imports are another factor that stands in the way of domestic production and the effectiveness of the campaign. Modernising the technology to improve the quality of domestic products is necessary to improve the competitiveness of Vietnamese businesses.

Truong Quang Hoai Nam, Director of the MoIT’s Domestic Market Department, said the MoIT is designing the nation’s 2011 trade promotion programme in which associations and businesses will cooperate to provide customers with more information and minimize unfair competition.