The HCM City based co-operative specialises in producing various categories offish sauce and processed food, of which 20 categories have been exported to 15 countries.

"The co-operative's products were sold in the USsince 1997 by a Thai company, under the trademark Thuan Phat of Thailand -Thai sellersbought Thuan Phat's products and re-sold them in the US," says Truong Lan Anh,director of the co-operative.

Direct export to the US market will reduce the price ofthese products by half. The co-operative also plans to export odorless fish sauce andchilli sauce to the us.

"This is a market where sauces are selling likehotcakes. But Thailand has dominated it for a long time. To occupy a larger market-share,Vietnamese businesses must become more competitive," Lan Anh confessed.

When the nation joins the ASEAN Free Trade Agreement(AFTA) in 2003, domestic businesses will face pressure from regional importers put on thesame tax footing by the agreement, according to analysts.

In anticipation of the new competitiveness, Thuan Phat hasinvested VND8 billion (US$533,000) to import regional standard production equipment.

Thuan Phat will also build a food processing and exportsupply plant on an area of 5,278sq.m at the De Minh Xuan Industrial Zone.

In the meantime, the cooperative is refreshing workertraining, focusing on product quality.

Lan Anh is confident that the new factory and productionline will increase the company's output by 30 per cent this year.