Besides a business trip to Indonesia, our next stop was Vietnam. Geographically close to China, Vietnam has many cultural attractions that attract tourists. Our last trip to Vietnam was in 2019. We are very happy to meet our customers in Vietnam again.
From April 15th to April 27th, we visited most of the clients’ offices in Hanoi and Ho Chi Minh. We exchange ideas with customers in the market and seek more cooperation opportunities.
Vietnam, A Country With Long and Narrow Territory
Vietnam is located at the southeast end of the Indochina Peninsula in Southeast Asia, surrounded by the sea on three sides and with a narrow and long terrain. It borders China’s Guangxi and Yunnan in the north, and Laos and Cambodia in the west.
Vietnam has many cultural sites. Some of them are listed as World Cultural Heritage. That is one of the reasons for traveling to Vietnam.
Due to its geographical proximity, Vietnam has close ties with China. We met many foreign citizens of Chinese descent and had the pleasure of visiting the history museum. The history of Mr. Ho Chi Minh interested us a lot.
Pesticide sales, especially glufosinate, were poor due to falling prices. Most customers in Vietnam have a large inventory of products. They are trying to consume the large stock quantity, facing the challenge of decreased price.
Fungicides occupy a relatively small market. Mancozeb is the most popular fungicide in Vietnam due to its wide range of uses and competitive price. Mancozeb is mixed with Metalaxyl to produce a metalaxyl + mancozeb 72%WP product.
However, mancozeb will face the risk of being banned in the future. Some far-sighted customers began to seek alternatives to mancozeb formulations. It is difficult.
Due to the hot and rainy climate in Vietnam, a large number of tropical fruits are planted, such as mango, durian, jackfruit, etc. The rainfall can also push the sales of fungicides.
But in 2023, the unusually arid climate partly decreases the use frequency partly for farmers. Some clients told us they can’t wait to pray for rain. The market faces more challenges and also exposes opportunities.
Vietnam, Being Both The Friend And The Stranger To Heben
Heben attended the Vietnamese market approximately 20 years before. We possess a much business experience there. Before the COVID-19 pandemic, we visited Vietnam every year. Vietnam is really our friend.
The reality should be like this. However, due to unique registration policies and less direct contact with Vietnamese customers, sales in the market are not ideal compared to the Australian and US markets. We must shift our focus to Vietnam for any opportunity.
Metalaxyl, Difenoconazole, Propiconazole, Hexythizox, and Tricyclazole are the products we are trading. Business opportunities need to be sought for new products such as Oxyfluorfen, Quizalofop-ethyl, Nicosulfuron, and Indoxacarb. There is still a long way to go to develop the Vietnamese market.