Domestic firms should look into changing from direct to indirect exports via distribution system and e-commerce channels, a move that is considered an urgent requirement due to the increasingly complicated developments of the novel coronavirus (COVID-19), according to the Ministry of Industry and Trade (MoIT).

Recent years have seen the government and relevant ministries launch numerous programs aimed at strengthening connectivity among businesses, producers, and foreign distribution systems such as AEON mall, Lotte, and MM Mega Market, which cover a wide network of supermarkets, and product distribution channels throughout a number of countries.

These programs have seen numerous domestic goods be indirectly exported to the supply chains of large corporations.

For example, last year saw MM Mega Market successfully export over 1,000 tonnes of Vietnam's agricultural products through its distribution system.

In addition, Saigon Co.op has co-ordinated efforts alongside the NTUC FairPrice system to export over 200 containers of goods to the Singaporean market each year.

Meanwhile, Vinamilk also enjoyed success in bringing organic milk products into Singapore whilst also promoting exports to other markets such as China, Japan, the Republic of Korea, and Europe.

Most notably, in order for goods to gain entry into respective supply chains, producers and exporters must comply with strict regulations regarding product quality, packaging, and labels by the purchasing units.

Despite enjoying a number of benefits, only firms that have a large production scale, experience, and financial capacity are able to make inroads into these supply chains due to small and medium-sized businesses facing a number of hurdles when it comes to grasping the requirements set out on technical standards and product quality by the purchasing units.

As a means of allowing firms to minimise risk whilst increasing indirect exports, the MoIT has devised a range of flexible solutions with leaders working alongside large distribution groups based domestically, in addition to large e-commerce systems in a bid to diversify export channels for local products.

Moreover, Vietnam's trade offices abroad have been directed to provide enterprises with information relating to market demand and commodities in export markets globally, whilst also making recommendations on technical barriers and compulsory standards for export commodities in an attempt to avoid cases of goods being returned.