SGGP
On November 27, in Ho Chi Minh City, the Ministry of Industry and Trade organized the Vietnam - Europe Trade Forum with the theme "Sustainable Development - Destination in the journey of creating future value chains".
Accordingly, many business representatives attending said that exporting goods to the European market is increasingly difficult because countries continuously issue and apply new technical barriers and standards, exceeding the ability of exporting businesses to meet.
Mr. Ta Hoang Linh, Director of the European - American Market Department, Ministry of Industry and Trade, said that a series of notable regulations such as the Border Carbon Adjustment Mechanism (CBAM), the Supply Chain Regulation Against Deforestation (EUDR), the Supply Chain Due Diligence Directive (CSDDD)... have been and will be applied, and are expected to significantly impact the trade activities of businesses of the two countries, while forcing Vietnamese businesses to convert production to participate deeply in the new value chain in this market. However, in the context of declining orders and weak internal capital, domestic businesses find it difficult to convert production to meet this new technical barrier.
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Mr. Ta Hoang Linh, Director of the European - American Market Department, shared new technical barriers applied by the EU market. |
In fact, many businesses say that currently, accessing and expanding market share in the EU is fraught with risks and uncertainties. On the other hand, the trend of applying increasingly strict standards on climate, environment, green transition, and sustainable development also poses many challenges for businesses.
According to Mr. Ta Hoang Linh, since the beginning of the year, the export turnover of Vietnamese goods to this market has decreased sharply by more than double digits, focusing on product groups such as phones, computers, textiles, footwear, machinery and equipment, etc. It is forecasted that the export turnover of this product group will continue to decrease in the last months of the year because the economic activities in the EU region have not recovered. The tightening monetary policy of the European Central Bank (ECB) is strongly affecting the entire EU economy, reducing credit demand, directly affecting consumption and investment.
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| Experts and businesses discussed solutions to overcome technical barriers to export goods to the European market at the forum. |
On the contrary, for agricultural products, the EU market recorded quite positive growth. In addition, the Euro increased by about 3.5% to nearly 1.1 USD per 1 Euro and increased by 17% compared to the time when the two currencies were equal in September 2022. This also brings certain advantages to enterprises exporting to this market when the EUR/VND exchange rate has increased by nearly 3.4% since the beginning of the year. Therefore, in addition to efforts to convert production to meet new technical barriers of the EU market, enterprises need to be flexible in negotiating payment currencies to increase the value of export orders.
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