Mr. Choi Young Chul, Chief Executive Officer of Nam Sa Company said that: In 2013, South Korea has imported about 6,000 tons of mangoes from other countries in the world. However, there is increasing demand for importing this fruit, and it is estimated to reach 10,000 tons in 2014.
“The Korean people now lead a high living standard and desire for healthy food, such as fruits. However, the South Korea’s fruits fail to meet its market demand, so they need to import a considerable number of fruits from other countries. In addition, this item has an increasing demand for quantity and a higher requirement for quality. Each year, import demand for mangos can increase by 50% in Korean market." said, Mr. Chul.
Moreover, Nam Sa Company is very interested in Vietnamese fruits which are favored by Korean people such as: jackfruit, banana, litchi, rambutan, mangosteen, etc. Therefore, the company is conducting survey on its domestic market demand for dried fruit, frozen fruit to cooperate with Vietnamese businesses, especially enterprises in Dong Nai province.
Moreover, many Korean enterprises also expressed their interest in other types of agricultural products. "We are researching and considering to import other Vietnamese products to Korean market such as salad, small tomatoes and mushrooms. However, food preservation is a major obstacle in bringing these goods to consumers in Korea" said Mr. Chul.
Stringent requirements
Mr. Kim Taek Jun, deputy managing director of Nam Sa Company affirmed that: import and export procedure is the biggest challenge in bringing Vietnamese agricultural products to South Korean market which imposes strict regulations on food quality. "The Korean government requires careful check for each exported farm produces to Korean market, including from the type of crop, plant to the type of soil, bacteria. Each factory processing fruits for export will be examined in various processes: preservation, packaging, transporting, etc. In general, Korea has prescribed specific standards for "farm-to-table” clean food,” said Mr. Jun.
After working session with survey team from Korea, Mr. Nguyen Van Thu, Director of G.C Food Company (G.C Food in Giang Dien I.Z), specializing in products made from aloe vera plant, said that Korean demand for importing this product remains considerable. However, exported products must satisfy stringent quality standards. "Korean market is the potential one for aloe vera products. However, superior quality standard is required such as ISO 22000 quality management system, machines and factories meeting food hygiene & safety standard, etc. G.C Food Company can accomplish all these requirements. Nevertheless, the company’s selling price is too high compared to Korean enterprises’ expectation, and the company is negotiating the price. It is scheduled that Korean businesses will visit factory of G. C Food and sign the export contract.” said Mr. Thu.
According to Mr. Kim Taek Jun, site-surveys of delegation show that fruits in Vietnam, especially in Dong Nai have high possibility of penetrating Korean market. However, exported fruits must ensure its consistent quality and longer preservation period. In addition, competitive price must be secured since initial survey reveals that fruits price in Vietnam is not lower than in neighboring countries such as Philippines and Thailand, fruits of which have built the brand in Korean market.
Furthermore, it is imperative to work out marketing strategies and product distribution systems. Nam Sa Company will provide direct assistance to Vietnamese enterprises to eliminate the intermediaries and to enhance the price competitiveness. With its state-of-the-art techniques for preserving fruits the company is willing to support and transfer technology upon the request of Vietnamese partners.
Cooperation promotion
For the purpose of encouraging strategic partnerships between Dofico and Nam Sa Company on exporting Vietnamese commodities to Korean market and vice versa, the two sides agreed to establish the two member limited liability company called: Investment Development Dofico- Nam Sa Co., Ltd (known as NADO). Its mission is to generate the linking chains to export agricultural products from Vietnam to South Korean market. Initially, a focus should be put to such products as mango, banana, wood pellets, rice husk and some maritime products; links with Vietnamese businesses, cooperatives, farms to implement the project of planting, exporting grass to Korean market; development of tourism and travelling activities, etc.
In particular, Nam Sa Company has cooperated with Dofico Corporation to plant Italian Rygrass which will supplying raw materials in shortage of animal husbandry in Korea. The project has brought good results and Dofico has accepted expanding the grass plantation area up to 350 hectares. Besides grass planting projects, Korean businesses also wish to work with Dofico as well as Dong Nai enterprises in exporting farming produces, animal by-products, and aquatic products in South Korea. Korean firms are also promoting the appearance of distribution systems for those items in the country.
One of projects attracting the attention of Korean businesses is solar power project. Korean enterprises plan to invest US$ 400 million in Dong Nai, for this project which will be divided into four phases. The project is expected to provide a stable power source and to appeal tourists to visit the model of solar power in the province.
Mrs. Nguyen Thi Le Hong, Chief Executive Officer of Dofico confirmed that with the company’s functions and missions related to the service sector, especially in the agricultural support services, Dofico has been promoting cooperative relationships with Nam Sa Company and Korean businesses. In the upcoming time, the two sides have paid great attention to linking service for consumption of farm products-the strength of Dong Nai province. Accordingly, Dofico has requested the provincial departments or agencies to support the enterprise in accelerating the establishment of NADO Company with the aim of promoting connection activities for agricultural products consumption.
