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

There are still opportunities

The world economy is showing signs of positive change, inflation in countries is showing signs of cooling down, and there are still opportunities and potential markets for Vietnam's exports.

There are still many opportunities for Vietnamese export enterprises in the last months of 2023.

According to Ms. Nguyen Thao Hien - Deputy Director of the European - American Market Department, through market monitoring, the rate of export turnover decline has slowed down. Exports in the second quarter of 2023 increased compared to the first quarter of 2023. In addition, EU countries and the United States have launched many measures to curb inflation, promote consumption, and promote export growth. These policies have initially taken effect, inflation in major markets such as the United States, EU, and the United Kingdom all tend to decrease. "In the coming time, with many other conditions, it is expected that exports can recover growth in the fourth quarter of 2023. In addition, free trade agreements FTA, for example, the UK joining the CPTPP Agreement, will open up new opportunities for Vietnamese exports," Ms. Hien commented.

Mr. Tran Minh Thang - Head of the Vietnam Trade Office in San Francisco (USA) said that the US market is showing signs of recovery and will continue to grow higher. Inflation is still high but has been at its lowest level since April 2021,... "A large amount of inventory has been released, employment has improved, purchasing power in the US will gradually recover, especially for shopping at the end of 2023, leading to a forecast that imports into the US market will recover slightly in the fourth quarter of 2023", Mr. Thang said.

Ms. Do Viet Ha - Representative of the Vietnam Trade Office in the Federal Republic of Germany market said that the opportunity to bring Vietnamese goods to Germany is still high. German consumers are willing to use good quality products at competitive prices from developing countries. Vietnam has many products that Germans have high demand for such as wooden furniture, clothing, textiles, footwear, coffee, and tropical fruits and vegetables.

“Another advantage is that Vietnam is one of the few countries in Asia that has a free trade agreement with the EU, so Vietnamese goods have more competitive advantages from the EVFTA agreement,” Ms. Ha pointed out, adding that Germany is gradually reducing its dependence on goods from China and is looking for more suppliers from Vietnam. “More and more German importers are asking the Vietnam Trade Office to find sellers in Vietnam,” Ms. Ha said.

Tropical fruits and vegetables are an advantage of Vietnam when exporting to the EU.

According to Mr. To Ngoc Son - Deputy Director of the Asia - Africa Market Department, Vietnam's exports can seek opportunities in many new markets. For example, the African market. Mr. Son said that this market is currently almost untapped. "Vietnamese products with great potential for export to this market are rice, agricultural tools, machinery and equipment, electronic products, components, and textiles. This market also has a large demand for agricultural products, food, and foodstuffs and does not have many strict technical requirements," Mr. Son suggested.

“The advantage of exporting to China is that Vietnam has preferential tariffs in free trade agreements (ACFTA, RCEP); geographical advantages and diverse forms of trade; China opens its doors to many agricultural products; Vietnam has a great demand for export products in which Vietnam has strengths…”, said Mr. Nong Duc Lai - Vietnam Trade Counselor in China.

What should Vietnamese export enterprises do?

The representative of the Vietnam Trade Office in San Francisco recommends that in order to maintain competitiveness, Vietnamese enterprises need to continuously improve production efficiency to maintain competitive prices; produce high-quality, innovative products, create differences, apply advanced technology to production; respond faster and more flexibly to market needs and consumer preferences; practice sustainable and socially responsible production - this plays a very important role for markets like the United States...

Vietnamese businesses must change to meet regulations on social responsibility and sustainable development.

According to the characteristics of the German market, Ms. Do Viet Ha recommends that businesses need to grasp and regularly update the EU's technical standards and regulations for products exported to Germany, especially regulations on social responsibility. For example, since the beginning of 2023, Germany has applied the Law on Obligation to Due Diligence in the Supply Chain. This law has an indirect impact on Vietnamese exporters. German importers can request Vietnamese exporters to provide information on origin, salary and labor regimes, factory waste treatment methods, certificates, sustainable trade certificates, social responsibility standards, sustainable forest management certificates, textile certifications, etc. Recently, the EU has also applied regulations on the circulation and use of products related to deforestation and forest degradation.

In addition, it is mandatory to pay attention to meeting the correct standards of the rules of origin to enjoy tariff preferences in EVFTA. Note to assess the capacity of the partner before signing the first contract. Enterprises need and should have a plan to participate in specialized fairs and trade promotion in Germany as well as in other countries.

“Businesses should note that most importers in Hungary have traditional partners. Vietnamese businesses must have outstanding products to attract importers to cooperate. They must also pay attention to verifying the capacity of their partners before making transactions,” Mr. Tran Ngoc Ha - Head of the Vietnam Trade Office in Hungary recommended.

According to Mr. To Ngoc Son - Deputy Director of the Asia - Africa Market Department, to exploit the market well, enterprises need to build brands, promote products, and position products in different segments; apply advanced technology in processing, packaging and preserving products; diversify forms of trade promotion; proactively research technical standards and barriers of markets, ensure complete documents; pay attention to requirements on green consumption; pay attention to and research new and potential markets.

Actively participating in international specialized fairs and exhibitions is a good opportunity for businesses to find partners and expand their markets.

To increase exports to the world's largest market - China, Mr. Nong Duc Lai - Vietnam's Trade Counselor in China recommends that businesses study and comply with regulations on quality standards, testing, quarantine, packaging, and traceability of the Chinese market; actively promote and introduce products, connect trade through fairs and exhibitions; regularly update market information, policies, import-export regulations... and market trends and needs through various channels. In addition, it is necessary to verify the strength and reputation of Chinese businesses, especially partners found through the internet. All transactions must be carried out in the form of contracts according to international trade practices with terms of transactions and dispute resolution that are closely agreed upon and highly binding. In addition, improve product quality, improve designs, build brands, focus on building packaging and designs suitable for the Chinese market; Have staff who understand Chinese to facilitate transactions with partners.

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