Lesson 2: What do export businesses propose?

Difficulty in payment and verifying partner capacity

Mr. Le Hoang Khanh Nhut - General Director of Da Nang Rubber Joint Stock Company (DRC) said that currently, the payment factor in export markets is still a difficult problem. Every business wants safety, every unit wants efficiency, but almost no business wants to do payment. Meanwhile, any form of payment affects costs. DRC chooses to buy payment insurance. For example, in some demanding markets such as the United States, which always has strict requirements on product quality, businesses must buy product liability insurance and must buy it in the host country (the United States). But Vietnamese people cannot buy directly in the United States. "This is a huge disadvantage for Vietnamese businesses when they are forced to buy through an intermediary partner, losing the opportunity to buy insurance for Vietnamese businesses and the opportunity to circulate products in this demanding market. Hopefully, in the near future, the Ministry of Industry and Trade will have support solutions," Mr. Nhut proposed.

Exporting businesses want support in international payments and verifying export partner capacity

According to Mr. Nguyen Anh Huy - Director of Trung Nam EMS, the company currently has partners in more than 100 countries around the world. In particular, verifying the capacity of partners is always a difficult problem. "The company hopes that trade offices and commercial counselors will support businesses in general and Trung Nam EMS in particular in verifying customers in customer markets, including verifying the financial capacity of partners in countries with Vietnamese trade offices", Mr. Huy expressed and explained further "In the current payment conditions, there are payments after 30 - 45 days, so there is a financial risk".

In addition, businesses want to further strengthen the connecting role of the Ministry of Industry and Trade and trade offices.

“DRC hopes that the Ministry of Industry and Trade and the Department of Industry and Trade of Da Nang City will increase support for businesses to promote trade and cooperation between countries. In particular, consider prioritizing support for businesses that are reputable exporters and businesses with national brands,” DRC representative suggested.

Mr. Nguyen Duc Huy - Chairman of the Da Nang Wood and Forestry Processing Association said that due to the impact of the world economy, inflation in many exporting countries, the market has declined significantly. Although there are some positive signs, the association's businesses are still facing many difficulties and this situation may last until early 2024. Wood and forest product processing and exporting enterprises in the Central region hope that trade counselors will support them in bringing wood products to new markets such as Australia, Eastern Europe and other markets. "We hope that there will be direct connection programs with trade offices and trade counselors so that businesses and business associations can contact and connect to find opportunities in new markets," said Mr. Huy.

Proposing the Ministry of Industry and Trade, Departments and Offices under the Ministry to support businesses to have more opportunities to connect and find partners in new, potential markets.

Similarly, the Director of Trung Nam EMS hopes that the Ministry of Industry and Trade, market departments, the Import-Export Department, the Trade Promotion Department, and Vietnamese trade offices abroad will support and strengthen connections with customers in other countries so that export enterprises in general and Trung Nam EMS in particular can expand production and business.

Vietnamese trade deals always accompany businesses

“The Ministry of Industry and Trade and the Asia-Africa Market Department will always accompany businesses in finding partners, supporting the assessment of partner businesses’ capacity, and expanding export markets,” affirmed Mr. To Ngoc Son, Deputy Director of the Asia-Africa Market Department.

According to Ms. Nguyen Thao Hien - Deputy Director of the European - American Market Department, currently, major import markets are focusing on stabilizing the supply chain and tending to move the supply chain closer to the consumer market; promoting the diversification of suppliers in their supply chain. Vietnamese enterprises, especially enterprises exporting key products such as textiles, footwear, are facing a huge risk of lacking orders. "In the immediate future, the Ministry of Industry and Trade, the European - American Market Department with its trade office system in the European - American market are all increasing their search for partners and orders to support enterprises, develop and expand their markets in the region", Ms. Hien said and added that in the long term, it is necessary to continue to improve the capacity of enterprises (competitiveness, technology, support enterprises in technology conversion, energy conversion to be able to pursue the requirements and goals of sustainable development).

Mr. To Ngoc Son - Deputy Director of the Asia - Africa Market Department affirmed that the Ministry of Industry and Trade and the Asia - Africa Market Department will always accompany businesses in finding partners, supporting the assessment of partner businesses' capacity, and expanding export markets.

Mr. Ta Duc Minh - Vietnamese Trade Counselor in Japan said that in recent times, the Japanese Trade Office has regularly connected supply and demand between businesses of different countries. Through the support of the Trade Office, a number of Vietnamese products have successfully penetrated Japanese supermarket chains; the Trade Office also regularly organizes Vietnamese goods weeks in Tokyo, Vietnamese sales points; supports businesses to participate in exhibitions of agricultural products, handicrafts, seafood, food and beverages, supporting industries, etc. Many businesses have sent samples to the Trade Office for free display as well as connected with major distributors and importers in Japan. Many businesses have successfully connected with large quantities of goods.... Organizing the promotion of agricultural products in Japan. "In the coming time, the Trade Office will continue to regularly update new products sent by Vietnamese businesses to display at the Trade Office's showroom in Japan", said Mr. Minh.

Regarding the issue of payment transactions and verifying the partner's capacity, Mr. Tran Ngoc Ha - Head of the Vietnam Trade Office in Hungary said that verifying the partner before making a transaction is very important to minimize business risks. "Enterprises interested in the Hungarian market can send information to the Vietnam Trade Office in Hungary for support. The Trade Office will provide maximum support for businesses in finding partners and expanding in the Hungarian market," said Mr. Ha.

Ms. Do Viet Ha - Representative of the Vietnam Trade Office in the Federal Republic of Germany also emphasized: "Businesses can contact the Vietnam Trade Office in Germany. We are ready to support businesses in checking partners, checking payment capacity, credit limits for business activities and other basic information to avoid risks in business transactions".

Final article : What recommendations are there for Vietnamese export enterprises?

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