DNVN - To successfully conquer the UK market, in addition to quality control, Vietnamese enterprises need to invest in sustainable production and ensure international certification, thereby helping their brands grow and maintain their position in this potential market.
The Vietnam – UK Free Trade Agreement (UKVFTA) has been in effect for more than 3 years, bringing many practical benefits to both sides. Total two-way trade turnover has grown by an average of 8.9% per year, of which Vietnam's exports to the UK have increased by an average of 9.4% per year. Despite the global economic downturn, the UK market has maintained its growth momentum, helping Vietnam achieve a trade surplus of 5.1 billion USD in the first 9 months of 2024, an increase of 24% over the same period last year.
According to Ms. Nguyen Son Tra - Head of WTO and Trade Negotiations Department, Multilateral Trade Policy Department, Ministry of Industry and Trade, the UK is currently Vietnam's third largest export market in Europe, after the Netherlands and Germany. This development affirms that bilateral trade relations between the two countries are on a favorable path.
The UKVFTA is not only a new generation FTA with high standards but also has a separate chapter on trade and sustainable development. This is a core factor that helps promote Vietnamese enterprises to increase product value and meet strict environmental and social requirements from the UK market.
However, Vietnamese exports also face many major challenges. The UK has strict quality requirements, from reducing emissions in production, controlling pesticide residues, to ensuring labor and environmental criteria.
Mr. Nguyen Canh Cuong - former Counselor of the Vietnamese Trade Office in the UK said that green trade and sustainable development are inevitable trends. However, the conversion to a green production model requires higher costs, creating competitive pressure, especially for small and medium enterprises.
Despite the difficulties, the UK market is still a great opportunity for businesses that are able to develop green, clean, low-emission products. Mr. Cuong commented that British consumers, especially in the high-income segment, are willing to pay more for products that meet green standards. This is the driving force for Vietnamese businesses to invest in sustainable production, increase value and make their mark in the international market.
Ms. Nguyen Thi Huyen - CEO of Vietnam Cinnamon and Star Anise Export Joint Stock Company (Vinasamex) assessed that UKVFTA has brought great benefits, helping businesses' brands to reach far. However, to be successful, businesses need to control quality and meet the high standards of importers.
"In particular, international certifications help businesses' brands grow and are like a passport to enter the European market in general and the UK market in particular," Ms. Huyen emphasized.
According to Mr. Nguyen Canh Cuong, in the current context, many businesses cannot overcome the new requirements because they do not have enough resources, finance, human resources and expertise to overcome. However, pioneering and leading businesses will overcome and develop.
For pioneering businesses in green development, although costs increase, selling prices are 20% higher than the average price.
"Even if the product's selling price is higher than before, the production cost is higher than before, but the product can still be welcomed in the UK market thanks to consumers in the higher segment. The quantity may not increase much but the price is still higher, it can still be accepted and welcomed by British consumers. This is an opportunity for Vietnamese businesses to meet higher requirements despite higher costs," Mr. Cuong analyzed.
According to Mr. Cuong, those leading enterprises will gradually pull other enterprises, gradually have an indirect and spreading value, gain the trust of British enterprises and British consumers in sustainable development values. Those spreading values will help many Vietnamese enterprises have conditions to access the British market in particular and Europe in general more and more.
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Source: https://doanhnghiepvn.vn/kinh-te/kinh-doanh/chung-nhan-quoc-te-chia-khoa-chinh-phuc-thi-truong-kho-tinh/20241212035217929
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