Global demand for transparent origins drives Vietnamese firms to adapt

Global demand for transparent origins drives Vietnamese firms to adapt. According to Dr. Hoang Van Viet, global consumers have shifted their behavior, demanding higher standards and often willing to pay more for products that meet them. Vietnamese businesses need to understand this to adapt and harness the potential to expand. During the seminar “Green Passport for Vietnamese Food” organized on the morning of April 10 by ITPC (Ho Chi Minh City Centre for Trade Promotion and Investment), Dr. Hoang Van Viet—UEH University lecturer, founder, and chairman of the Global Intellectuals Business Association (GIBA)—shared insights on global consumer behavior trends and the capacity of Vietnamese enterprises to adapt. The perceived value to consumers has changed. Dr. Viet noted that understanding consumer behavior is essential when selling any product or service. By grasping the trend, businesses can craft strategies that enable more sustainable sales. The most basic consumer trend is perception—the factor that ultimately determines whether customers will buy a product. [image] Dr. Hoang Van Viet at the event "This value has multiple layers. The first layer is basic, related to taste, freshness, quality, and safety of the product. This layer hardly changes, but its role has diminished to make room for the rise of other values." The food and beverage sector also attaches value to health, emotions, and a sense of security when purchasing to care for oneself. Furthermore, there is a layer concerning social responsibility and the environment, as customers begin to care whether products are produced with child labor, and about worker welfare. "In coffee, European consumers are willing to pay 10–30% more for products certified as Fair Trade. The premium goes directly to cooperatives to sustain communities and support the vulnerable," the expert added. Information asymmetry and the demand for transparency Demand and value have shifted, but the reality remains that information asymmetry exists. Urban consumers cannot know farmers’ cultivation practices. Therefore, they rely on the information provided, which is also why certifications have emerged. "Certifications exist to address information asymmetry, serving as a vehicle to convey transparent supply-chain information," Dr. Viet said. According to the expert, Vietnamese people have relatively simple trust in products and have not deeply studied certifications related to social responsibility or environmental stewardship. By contrast, in Europe, consumer awareness has risen sharply, with strong belief in consuming health-protective foods and protecting the environment, and a willingness to pay a premium. "According to Maslow’s hierarchy of needs, once basic needs are met, people pursue higher-order needs such as social impact and responsibility. Therefore, market demand for certifications is a natural law, not merely fussiness, and we must strive to follow that trend," he added. According to OECD (Organization for Economic Co-operation and Development), in 2023 more than 50% of EU consumers were willing to change behavior to reduce environmental impact. This pressure forces retailers, manufacturers, and governments to raise standards. Traceability and transparency through certifications are now universal requirements. Turning to Vietnamese enterprises, Dr. Viet noted that the agriculture–forestry–fishery sector achieved export turnover of more than USD 62 billion in 2024, with exports to Europe totaling nearly EUR 4 billion, but potential and market gaps remain large. "Vietnamese agriculture has a solid quality base and freshness. However, Vietnam is lagging in commodity standards and origin tracing. We lack a transparent value chain because farmers are reluctant to log production records. According to UNIDO (United Nations Industrial Development Organization), difficulties in meeting international standards, lack of control systems, and lack of origin tracing are major barriers for small and medium enterprises to access developed markets." Vietnamese enterprises have good products and strong production capacity, but the biggest challenge is origin tracing, certification, and building a systemic chain. According to Mr. Viet, these are issues that enterprises must address in the near future to fully harness the potential.