On the other hand, since confectionery is not an essential consumer product that people must use daily, it is among the first items consumers tend to cut back on during economic hardship.

According to a representative of Huu Nghi Food Joint Stock Company, domestic confectionery manufacturers continue to face numerous challenges due to inflation. When electricity prices rise by 10%, water by 50%, fuel by 10%, and coal by 28% to 41% depending on the type, people are forced to prioritize essential goods such as rice, salt, and detergent-negatively impacting confectionery consumption.

“Not to mention, 100% foreign-invested confectionery manufacturers equipped with modern technologies and professionally implemented market strategies have captured the majority of the premium confectionery segment in Vietnam,” said the Huu Nghi Food representative.

The WTO roadmap has also facilitated deeper market penetration by foreign confectionery products, particularly those from ASEAN countries such as Malaysia, Thailand, and Indonesia. As a result, Vietnamese confectionery businesses must adopt various strategies to survive and grow.

A representative of a confectionery company based in Ho Chi Minh City shared that the company previously specialized in products like wafers, bread, crackers, and cookies. “However, these products are often counterfeited or copied and lack technological differentiation, making it difficult to compete with private and village-based confectionery producers in the mid and low-end market segments,” the representative explained.

Mr. Trinh Trung Hieu, General Director of Huu Nghi Food, stated that in addition to continuously launching quality products with diverse designs, the company also strengthens sales policy oversight, prevents territorial encroachment and price dumping, and monitors distributors to ensure strict compliance with company policies.

“Huu Nghi Food has segmented products by market to minimize counterfeit, imitation goods, and territorial overlap. For example, we have achieved considerable success with this strategy through the Tipo product line in the highly demanding Chinese market,” Mr. Hieu emphasized.

The company also enhances post-sales services, evaluates distributor capacity to assign appropriate sales targets, and supports distributors in adopting new, professional sales methods. In addition to solidifying their position in the domestic market, confectionery companies are also expanding internationally to boost revenue and competitiveness.

Economic experts suggest that domestic enterprises should shift their export model from unofficial (cross-border) trade to official channels, focus on targeting premium market segments, large retail groups, and supermarket chains to achieve sustainable effectiveness.

For instance, Huu Nghi Food has exported to over 10 countries, including demanding markets such as Japan, South Korea, and Australia. The company's ability to penetrate these markets is largely attributed to its modern production facilities and compliance with quality management standards such as ISO 22000:2005 and HACCP. Export revenue accounts for nearly 20% of total sales, and the company is currently negotiating with partners to establish representative offices in multiple countries.

Source: VnExpress.net