Total sales of the Vietnamese household ceramics market averaged about 5,600 billion VND a year, but domestic producers only account for 30%. Why?
When it comes to traditional pottery making, Vietnamese people are always proud of the Oc Eo culture (from the first to the seventh centuries). Archeologist Dr. Nguyen Thi Hau said, the art of baking in this period reached a high level. There are many archaeological sites excavated, for example in Dong Nai or Can Gio (Ho Chi Minh City), showing that the art of creating earthenware was born in our country 3,000 years ago.
As mentioned above, although the number of household ceramics production establishments across the country is numerous (286), they are mainly distributed in areas with long-standing traditions of pottery such as Binh Duong, Bat. Trang, Hai Duong … take home advantage (understanding consumer tastes and market needs), but still only occupy 30% market share of an extremely potential market with total sales up to 5,600 billion a year. So who is that lucrative 70% market share? Where does four trillion dong revenue from “bleeding” household porcelain industry go every year? Chinese goods: East, exclusive, cheap! The answer probably everyone knows. All kinds of Chinese ceramics products of all kinds are pouring into Vietnam day and night through all corners, both official and small, and are storming markets and shopping centers across the country. The strength of Chinese products was described by Mr. Nguyen Do Ha, General Director of Hai Duong Sanitary Ware, as extremely rushing. The main advantage of Chinese products is that most of them are in the form of tax evasion, through the “quota” routes at the border gates. The sophistication of the form of invading the Vietnamese market used by Chinese manufacturers is to find ways to smuggle goods into Vietnam and then stamp local goods right in Vietnam! For example, the label “Bat Trang”, is Chinese. Or the establishment both produces in Vietnam and imports the label “Made in Vietnam”. And because there are many production facilities, Chinese products are very diverse, although each place only produces 1-5 products. According to Mr. Ha, in China, there are regions specializing in producing goods to supply the world, so there is a very large output, dividing the production into each stage. Such as producing its own raw materials, own white porcelain, own flower porcelain … and each factory specializes in producing only 1-5 types of products, so there is a very high level of specialization, creating large output and low cost. In some new areas, such as Jingshan, even the manufacturers are supported by the Chinese state, causing the prices of their products to drop dramatically. Mr. Ha said, the dangerous thing is that Chinese manufacturers accept to mix lead in products and patterns, so they can lower the heating temperature, thereby lowering the product cost. However, this is harmful to the health of the user. Meanwhile, Mr. Ly Ngoc Minh, General Director of Minh Long 1 Company, shared with Entrepreneur that a high quality product must be baked at a high temperature, the higher the better. With ceramics above 1,200 degrees Celsius, porcelain is above 1,300 degrees Celsius to reach the new standard. Currently, according to Mr. Minh, Vietnam’s fine porcelain is heated at 1,280 degrees Celsius. High-quality products of Minh Long 1 are baked at 1,380 degrees C – the highest in Vietnam today and are baked by Modern German production line system, kilns are also imported from Germany. When a product of Minh Long 1 reaches consumers, it is mandatory to meet many criteria: white, clear, round, thin, but hard and durable, glossy, sleek patterns and cultural elements in the design. next. According to Mr. Ly Ngoc Minh, Vietnamese household dishes and dishes made of porcelain have reached a high level of art and technique and meet the strict requirements of the domestic and international markets. Chinese products are characterized by light heating at low temperatures, only about 800 degrees C, so they are fragile and have low durability. The way to distinguish it is to touch it, to see it, and to see the pattern, it does not sink into the enamel layer. Mr. Ly Ngoc Minh affirmed that Chinese porcelain sold on the market has lead in the layer of light fire pattern. And General Director of Hai Duong Porcelain, Nguyen Do Ha, explains that lead has the effect of lowering the melting temperature of porcelain and patterns, while increasing the gloss at low temperatures. So most of the Chinese porcelain uses this leaded pattern. The strength of chopsticks The former Chairman of the Vietnam Craft Village Association, Mr. Vu Quoc Tuan, expressed his concern about the question of the future of the Vietnamese household porcelain industry. He pointed out two main reasons for weakening the domestic porcelain industry. That is each weak business itself, lack of handshake, so it cannot compete with Chinese products. Secondly, the state does not create conditions for businesses to develop, in terms of investment capital, and improve production technology. “Seeing death but unable to struggle”, Mr. Tuan lamented the general situation of many ceramic production establishments in the country today. Not as pessimistic as Mr. Vu Quoc Tuan, a number of Vietnamese businesses have come up with solutions for themselves as well as the domestic ceramic industry. Minh Long 1’s own solution, according to Mr. Ly Ngoc Minh, is that next year, to invest in expanding production of commodity groups in the more affordable segment, in order to dominate the market share. Currently, for the segment of high-end and middle-class consumer porcelain goods, Minh Long 1’s market share accounts for 80% of the country. Despite the economic downturn, the company’s 2011 total revenue still reached 450 billion VND and Mr. Minh set a target of 30% increase in 2012. He revealed to Doanh Nhan, first 9 months of this year revenue has increased more than 25% compared to the same period in 2011.