| Enterprises take advantage of opportunities to expand export markets. Expanding markets, fruit and vegetable exports continue to increase. |
Continuously reaping sweet fruits
Having just exported an order to the Jordan market, Mr. Pham Quang Anh - CEO of Dony Garment Company Limited said that, contrary to the general picture of textile and garment exports, in 2023 and the first months of 2024, the company received a large number of orders and increased revenue. Up to now, the company has enough orders until the end of July 2024, and about 60% of orders for the following months.
This is the “sweet fruit” of the journey to find orders in countries in Europe, the Middle East and Southeast Asia. According to Mr. Quang Anh, since the end of 2022, when orders decreased and production slowed down, businesses have started to shift their market orientation.
After 2 years of shifting to new markets such as UAE, Jordan, Malaysia, Cambodia, etc., the company has reduced the risk of orders. Currently, the Middle East and ASEAN markets account for 30% of the company's total export turnover.
Notably, in the Cambodian market, according to Mr. Quang Anh, although this is a new market, the number of orders is quite abundant. Normally, the textile and garment industry will sell best during the Lunar New Year with the Vietnamese and Chinese markets and the New Year with the European, American and Middle Eastern markets. As for the Cambodian market, because their New Year falls in April 2024, it is out of season with all other markets.
“The low season of the traditional market is the peak season in Cambodia. Thanks to that, the company has enough orders to produce for the whole year. It is expected that in 2024, the company's sales will increase by 15%,” Mr. Pham Quang Anh shared.
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| Continuously expanding the market, many businesses reap sweet fruits |
Also continuously receiving export orders to markets, Ms. Mai Thi Nhan - Director of Ngoc Tung Company Limited (specializing in the production and export of squid and octopus) said that in previous years, the company's export markets were mainly in Europe and some Asian markets with an export output of about 1,500 tons of various types. However, currently, the European market has almost no orders due to the "yellow card".
Faced with these difficulties, the company has shifted its retail market to South Korea and Russia. Although orders have decreased compared to previous years, the company has signed orders for the whole year of 2024 with an output of about 800 tons. To ensure the annual plan, in addition to domestic raw materials, the company is actively seeking additional foreign markets to import raw materials.
Meanwhile, for Binh Tay Food Joint Stock Company - an enterprise exporting products such as vermicelli, rice noodles, pho, and noodles to markets such as Korea, the US, and Canada, Ms. Le Thi Giau, Chairwoman of the Board of Directors of this company, assessed that 2024 is a favorable year for food and foodstuff enterprises.
According to Ms. Giau, Binh Tay Food Joint Stock Company currently has enough export orders for the whole year, even though its production is not enough to sell. The company plans to export about 800-1,000 containers this year and expects revenue to increase by more than 300%.
This result is thanks to the active participation in export forums and fairs in recent times. This helps businesses find and diversify customers. “With standard products, guaranteed quality, packaging according to HACCP, ISO standards... through fairs, businesses have the opportunity to connect and access large retail systems. From there, increase exports”, Ms. Giau shared and added that the business is currently expanding the vermicelli factory with a capacity of 5,000 tons/year in Dong Nai.
Challenges remain
Although the export market has many advantages, experts say challenges still lie ahead as geopolitical conflicts remain complex and unpredictable.
According to Mr. Dang Phuc Nguyen, due to the conflict in the Red Sea, the time to transport fruits and vegetables to Europe, the Middle East, and North Africa has increased by 15-18 days, doubling transportation costs, increasing prices, reducing product quality, and reducing competitive advantages with products from South American countries (the shipping routes of these countries do not go through the Red Sea). Some businesses have had to switch to air transport, resulting in higher prices and less volume.
Ms. Le Thi Giau added that in the first quarter, businesses faced instability in prices and costs. In addition to increased freight costs due to conflicts in the Red Sea, input costs for the food industry are increasing. Meanwhile, it is difficult to negotiate price increases with customers.
In that context, to adapt, businesses have had to invest in additional technological lines to increase productivity. At the same time, monitor and manage input costs.
Regarding wood industry enterprises, Mr. Dien Quang Hiep - General Director of Minh Phat 2 Company Limited (Mifaco) acknowledged that, along with developing new models, enterprises are focusing on perfecting their apparatus and finding solutions to reduce costs. "Despite difficulties, the company still allocates a certain budget to invest in machinery to reduce labor costs, and informs workers to create consensus and determination to work with enterprises to reduce costs and improve production and business efficiency," Mr. Dien Quang Hiep emphasized.
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