Dubai market and golden opportunity


Nearly 10 years ago, businessman Nguyen Lien Phuong, director of LP Vietnam Co., Ltd. – a company specialized in the business of design and production of decorative art products – Set up your world conquest. As soon as he arrived in Dubai he had the answer.

Returning home, in 2010, Phuong founded LP Dubai to realize his ambition. According to the Vietnamese ambassador to the UAE, Tran Ngoc Thach, at the time, LP seemed to be the only Vietnamese brand in the market. But time proved Phuong’s vision and decision to be right. From Dubai, the brand of LP quickly gained a mark on the global market.

After three years since LP Dubai landed on the land of the fairy tale “Thousand odd one night”, so far the story is different. On the heels of LP, hundreds of Vietnamese businesses have made the first move for the market in this market. The initiator of leading businesses into the market was none other than Phuong, who soon saw the potential of this mysterious country.

Phenomenon “Vietnam” at Big 5 Dubai 2013

Not long ago, the Dubai government announced that it would invest $ 754 billion in infrastructure, or six governments from the Gulf Cooperation Council (GCC), to unveil an early investment and incentive program. Invest in infrastructure and real estate, with a total investment of up to USD 5,000 billion in the period of 2010 – 2020. Without ignoring this great opportunity, 18 Vietnamese companies have jointly organized a joint booth. At the Big 5 Dubai 2013 – held from 25-28 November 2013 – to promote the world production capacity and supply of construction materials products, interior decoration of Vietnam. The booth was jointly organized by VChoice – the trade promotion and business linking unit of LP Vietnam Academy of Entrepreneurs – Vietnam Embassy and Trade Office in the UAE. An entrepreneur in the delegation joining Vietnam’s booth at the fair said: “We came here and feel that in Dubai there is no sign of the global economic crisis. The market is booming in demand, so this year’s market is more active than previous years. ”
Being present at the fair is the best test to measure the competitiveness and attractiveness of Vietnamese products to the Middle East market in particular and the global market in general. This test gives the result beyond the expectation of the business. Booths of Vietnam, with many diverse product lines such as wall tiles, decorative tiles, plastic materials, interior decoration products … attracted the attention of international customers from the opening day and During the 4 days of the fair. At the end of the fair, many businesses had their first contracts as well as established long-term partnerships with potential partners and customers in this market. Ambassador Tran Ngoc Thach did not hide his pride: “The first floor is present at the Big 5, Vietnam Pavilion has proved its stature and special attraction. The size and quality of our booth is not inferior to any other country in the region. This is a good starting point for Vietnamese companies to penetrate the Middle East market. ”

Signals from the fair have opened the door to this company’s deep-seated business plan. Next year, products on display at the booth will continue to be present in the Dubai market, through the VChoice display booth to promote and reach potential partners.

Vinh Cuu is one of the enterprises that receive special attention from international buyers, these positive signals reinforce the determination to expand the Middle East market through The Dubai Gateway of Director Nguyen Vui. Sharing with Entrepreneurs, Mr. Vui said, “We have plans to build distribution centers and expand the showroom to increase our reach in Dubai. This area is building at a rapid pace, it is a golden opportunity for the construction materials business in Vietnam. We certainly will not ignore it. ” Like Vĩnh Cửu, businesses are quite firm and have brands in the domestic market such as: Dekko, Prime, Tien Phong Plastic, Cat Tuong, Dat Hoa … see Dubai as a key point in the export strategy. Export and advance to the global market.

With the creation of the mark at the Big 5 exhibition of Vietnam Pavilion, from here, the integration story of the business, according to Chairman VChoice – Mr. Nguyen Lien Phuong, “will step into a new page.” Mr. Phuong’s new page covers a very important aspect of solidarity. Instead of a fragmented and fragmented way of doing things, businesses have learned how to unite into one and work together to build the nation’s overall brand.

The common roof named VChoice, following the model of “flying birds” that Phuong and his business built, proved to be influential and effective. Not only entering the market with building materials, this month the core members of VChoice’s project teams are VChoice Supplier (agricultural, food, beverage, consumer goods) and VChoice Greens (VChoice Greens). Trees and services of greenery, products and services of interior and exterior decoration …) will sit together to unify the plan to enter the Dubai market in 2014. Step into an international trading gateway like Dubai, That means huge competition pressure. Vietnamese enterprises have to compete with competitors from dozens of other countries. Without solidarity, losing is a danger. Gathering the business together to go to the international market, ie VChoice has solved the basic weakness of Vietnamese enterprises on the playing field integration.

Slow but not too late

Referring to the gravity of the Dubai market, representatives of the Vietnam Trade Office in the UAE, Trade Commissioner Ngo Khai Truong said that besides the investment boom, Dubai is also the most attractive non-tariff market. In the world, in addition to import tax (from 0 to 5%), business enterprises in the UAE are not required to pay value added tax, corporate income tax and personal income tax. On the other hand, the UAE market, the Middle East, and Africa are generally relatively “easy-going” market areas without the application of technical barriers such as the EU and North American markets.

He added that the region mainly imported consumer goods and accepted the variety of goods, from the very popular to the super, so the opportunity to enter the market of Vietnamese enterprises is very pig. With these characteristics, it is not too difficult to explain Dubai’s appeal to the world in general and to Vietnamese businesses in particular. Only in the past two years, following the Dubai market research program conducted by LP Vietnam Business Academy in cooperation with the Embassy and Vietnam Trade Office in the UAE, there were 500 enterprises surveyed to find Looking for investment opportunities in this market.

There have been some doubts whether it is too late for Vietnamese businesses to start to get information about the potential of Dubai and find their way into the market. Before China, its neighbor built a 20-acre Dragon Mart commercial center for Chinese products. When asked about their ability to compete with rivals that are very uncomfortable from China, most Vietnamese enterprises, after studying the market, are confident that the quality of Chinese products is unstable. In Vietnamese goods. That is not to mention, Chinese brands are discredited in this market. Meanwhile, the Middle East in general is very sympathetic to the image of Vietnam and this is our opportunity.

On the other hand, businesses are determined to come to Dubai not just to sell to the UAE, but to sell to the Middle East, Africa as well as the world market. The saying of folk: “good market than good pig” right in this case. With a large market and for many different segments like Dubai, even after the Vietnamese enterprises still have many opportunities. The rest lies in the approach of the business. VChoice has built a professional sales promotion system to promote the brand name of its products in Vietnam, At the same time build up a deep network with international partners and customers.

As a follower, Vietnamese enterprises have the opportunity to study the survey, assess the relative strength and find out their different advantages. According to Nguyen Van Phuc, General Director of Phuc Ha Company, the company owns the brand name plumbing DEKKO said that advantages of Vietnamese products is stable quality and competitive price.

But to this point, Vietnamese businesses have just approached the Dubai market, while the world has been converging here for decades. Nguyen Van Cuong, general director of Cat Tuong Company, who has extensive experience in trade promotion programs, shared: “Vietnamese enterprises have mostly followed in the past. Trade promotion programs are organized by the state and are still familiar only in traditional markets. But there is not much opportunity for us, it is time to divert to invest resources in the right niche and the real opportunity lies in open markets like Dubai. ”

After two years of gathering and connecting businesses, the entrepreneur who launched the “flying birds” model – Nguyen Lien Phuong – was able to temporarily be satisfied with the gold integration that he and his team diligently Treated during the past two years. Mr Phuong believes that when the leading birds have opened their wings and confidence in the international market, there is no reason why the next birds will not join the flock to fly to the promised land. Vietnamese businesses, with their advances into the Dubai marketing gateway, are full of hopes of reaching out to global markets and competing with foreign brands.