More Vietnamese enterprises are actively looking for ways to penetrate the Cambodia market or expand their existing operations in the neighbouring country while they are struggling in the domestic market.
Vietnam-based ABC Bakery will launch another bakery in Cambodia this month, taking the total to four. The cake maker is looking to achieve 10 in the near future, said Kao Sieu Luc, general director of ABC Bakery.
The firm also plans to open a confectionery factory in Cambodia in a bid to satisfy the rising demand there.
On the fertiliser front, the Cambodian market is dominated by Thai and Philippine brands but there remain opportunities for Vietnamese fertiliser producers, according to a survey by Binh Dien Fertiliser Co.
Thai and the Philippine fertiliser sellers focus on sales, meaning that Vietnamese producers can compete by improving customer service such as giving instructions to farmers, said Le Quoc Phong, general director of Binh Dien Fertiliser Co. Under the strategy, Binh Dien Fertiliser Co. has supported farmers in fertiliser usage and collaborated with Cambodian experts to create suitable products. The move helped farmers increase rice output to 5-8 tonnes per hectare from 2 tonnes.
The fertiliser manufacturer exported 90,000 tonnes of products to Cambodia in 2011 and the figure is expected to surge to 130,000 tonnes in this year. Binh Dien Fertiliser Co. currently holds a market share of 50-60 percent in Cambodia, according to Phong.
At present, many Vietnamese firms are mapping out marketing strategies in an effort to promote the sales of their products.
Vietnamese plastic producers must harshly compete with Thai rivals but there remains a market segment for them as Cambodia holds big potential for the industry, said Tang Quang Trong, sales director of Dai Dong Tien Co.
The plastic producer has started developing its distribution network across Cambodia after conducting market survey and analysis. Thanks to its plan, its revenue has shot up 25 times one year later.
As of now, the neighbouring country is home to over 400 Vietnamese businesses with most of them active in trade, production and finance.
Vietnamese exports to Cambodia last year grew by 54.75 percent to $2.83 billion from $1.83 billion in 2010. The country obtained $1.18 billion of export earnings in January-May, a 32.6 percent year-on-year increase.