 |
| Speakers attending the Seminar “Developing Vietnamese brands in the CPTPP market”, September 27, in Hanoi. (Source: HQ) |
At the seminar with the theme “Developing Vietnamese brands in the CPTPP market” held on September 27, speakers said that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which officially took effect from January 14, 2019, is expected to be a turning point creating new momentum, promoting trade and investment cooperation between Vietnam and partner countries implementing CPTPP.
Speaking at the seminar, Mr. Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that when mentioning the CPTPP Agreement, people mainly focus on three markets that do not have a free trade agreement (FTA) when the CPTPP comes into effect, namely Canada, Mexico and Peru. Because, since the implementation of the CPTPP, the two markets of Canada and Mexico have had very encouraging growth. In addition, the trade surplus that Vietnam has from these two markets often accounts for 1/3 to 1/2 of the trade surplus of the countries.
Regarding the Peruvian market, Vietnam often thinks that this is not a large market, but in fact the growth potential of this market is very high, with some years of triple-digit growth.
However, there is still a lot of room for businesses to penetrate deeper into markets such as Canada, Mexico and Peru. There are some products that currently only account for about 3-5% in these markets; the image of Vietnamese brands in these markets is still relatively modest.
Ms. Tran Thu Quynh, Trade Counselor, Vietnam Trade Office in Canada, said that Canada is currently one of the 10 most important trade partners of Vietnam in the world. According to data from Canadian authorities, in 2022, Vietnam's exports to Canada increased by 26.4% in value compared to 2021 and 5 years after the implementation of CPTPP, increasing from 4.1 billion USD in 2018 to 9.9 billion USD in 2022.
According to Vietnam Customs, Vietnam's export value to the region has also increased by 110% after 5 years, meaning this is a billion-dollar market with the highest export growth rate among the CPTPP countries. With such high export growth, Vietnam has now become Canada's seventh largest import partner and Canada is also a country with a very large trade surplus, up to over 9 billion USD.
According to Ms. Tran Thu Quynh, CPTPP has a leverage effect to help businesses of the two countries pay more attention to each other's product and market structures. At the same time, CPTPP has a positive impact, a spillover effect, promoting the development of supply chains, transportation and logistics... between Vietnam and Canada.
However, the rate of using tariff incentives in CPTPP is not high, up to 60% of products enjoying 0% tax have not been utilized. Furthermore, over 60% of Vietnam's exports to Canada are products of the FDI sector with their own brands, while the domestic sector mainly exports raw or processed products.
In fact, after the implementation of CPTPP, exports of zero-tax products such as phones, electronics, electrical appliances, basic metals, seafood, vegetables, fruits, or even other products such as cashew rice, tea, coffee, etc., regardless of the preferential form used, have increased dramatically. Some products have increased by up to 1,000%, showing that CPTPP has had a leverage effect, helping businesses of the two countries pay more attention to each other's product structure and markets, thereby indirectly promoting exports of even products without a tax reduction roadmap. In addition, CPTPP also has a positive impact on Vietnam's exports, promoting the development of supply chains, transportation and logistics between the two countries.
Many "made in Vietnam" products have been exported abroad under their own brands, such as Trung Nguyen coffee, Vinamilk milk, Viettel telecommunications services and Vinfast cars. These successes have had a positive impact on potential markets, including CPTPP member countries, helping Vietnamese export industries and enterprises increase market share or brand value in traditional markets and access new markets.
However, despite the increase in quantity and export value, Vietnamese branded goods exported to the CPTPP market are still quite modest. Many Vietnamese products exported to the CPTPP market still carry foreign brands.
“In these markets, people know about Vietnamese coffee and Vietnamese rice, but they only know about a specific Vietnamese brand,” Mr. Khanh pointed out.
Ms. Trinh Huyen Mai, Deputy Head of the Trade Promotion Policy Department - Trade Promotion Agency (Ministry of Industry and Trade) said that currently, Vietnam's export enterprises are mainly small and medium enterprises and export through the export processing supply chain or export in the form of raw materials and raw materials as input for manufacturers and processors abroad.
These enterprises purchase, reprocess, package and export under their own brand, so the added value as well as the private brand of Vietnam is still very modest. Moreover, successful brand building only occurs in a few enterprises that have real potential, understand the market and have a methodical strategy.
Ms. Mai said that the Ministry of Industry and Trade has directed the Trade Promotion Agency and related units to persistently continue to build and develop brands at all levels.
Firstly , continue to raise awareness of all levels and sectors, the meaning, role and necessity of brand building, especially at the business leadership level.
Second , strengthen activities and improve capacity for building, developing and managing corporate brands.
Third , at the national level, we will strengthen promotional activities, propaganda, and advertising for the Vietnamese national brand, for products that achieve national brands, and for Vietnam's strong export products.
Fourth , at the industry level, the Ministry of Industry and Trade will continue to support associations in building competitive strategies for industry brands, building and promoting industry geographical indications. Thereby, not only promoting and developing, but also protecting their brands in the world market.
Fifth , continue to encourage and support businesses that have products that have achieved national brands, businesses with potential and aspiration to bring Vietnamese brands to conquer the world market.
Source
Comment (0)