Introduction of luxurious, smart and informative packaging material with new designs by Phuoc Kim Thanh is contributing to higher prices for the flowers from Lam Dong province in the export markets.
The incipient flower industry of Vietnam is new to the severe competition in the international markets where packaging plays a major role in protecting the flowers in transport, marketing and higher price realization. Traditionally, the flower producers selling to the domestic markets used low quality packaging as the demands from customers were relatively low.
Sensing an opportunity in this area, Mr. Đỗ Duy Phước, Director of Phuoc Kim Thanh, a packaging supplier to the extremely competitive garment industry, approached Danida for support under the Business Sector Programme Support (BSPS) to develop new packaging designs using modern materials that can help the exports of flowers and vegetables. With technical expertise from Europe and Taiwan, Phuoc Kim Thanh developed new designs and production methods. Initially, it was a challenge to convince the flower farmers to use the relatively expensive packaging material, but a cost-benefit analysis and support from the exporters combined them.
Since Phuoc Kim Thanh produced very high quality packaging material with innovative designs, they were not only successful in supporting exports of flowers, but were approached by importers in the Netherlands and Japan to supply the packaging material for use by their farmers. This was an unexpected positive effect. The new designs and quality requirements of the customers in the Netherlands and Japan are expected to further improve the packaging material to Vietnamese farmers.
Inspired by the strategic approach that Phuoc Kim Thanh has taken in creating and developing new markets, The Vietnam Plastics Association conducted a workshop to share the market diversification experience and discuss the innovative steps that their members can take not only to handle competition but also to develop new applications.
During the group discussions that followed, participants came up with several ideas that can help them in developing profitable markets by finding new applications of plastics that can help the growth of sectors such as exports of handicrafts, processed food and tourism.
Commenting on the experience from the workshop, Mrs. Lieu Thi De, Deputy General Director Of Tien Hung Chemical & Additives Corporation expressed: “The experience of Phuoc Kim Thanh has inspired us and reaffirmed that investments into human resources and development of long-term strategic plans is the approach that SMEs should take to grow stronger as businesses”.