Exporting to Asia - Africa: Exploiting opportunities from niche markets

Exploit new markets and niche markets well

The Asia-Africa Market Department (Ministry of Industry and Trade) said that in 2023, the world economy will face many difficulties and challenges and Vietnam's trade activities with the world will also be significantly affected.

Not out of the trend, in 2023, Vietnam's total import-export turnover with the Asia-Africa region is estimated to reach 458 billion USD, down 6.7% compared to 2022. Trade turnover between Vietnam and major partners in the region such as China, Japan, South Korea and ASEAN countries all declined.

Xuất nhập khẩu sang khu vực Á - Phi: Khai thác tốt cơ hội từ thị các trường ngách

Export promotion and trade connection activities are helping Vietnamese products and businesses better exploit markets in the Asia-Africa region (Illustration photo)

However, in the relatively gloomy trade picture, trade between Vietnam and the Asia-Africa region still has some notable bright spots.

Firstly, the Asia-Africa region has always been an important export market for Vietnam, accounting for more than 67% of the country's total import-export turnover. Of which, exports are estimated to reach 183 billion USD, equivalent to 2022, accounting for more than 51% of Vietnam's total export turnover to the world.

Some markets have increased export turnover such as China (6.2%), India (7.8%), Indonesia (13.8%), Middle East (13.5%), Africa (4.)%)...

" While Vietnam's exports to other regions have decreased, exports to the Asia-Africa region have remained stable, which is the basis for limiting the decline in Vietnam's exports to the world, " said the Asia-Africa Market Department.

Second , in the general downward trend of exports, exports of traditional and important Vietnamese goods to the Asia-Africa region still maintained good growth. For example, means of transport and spare parts (reached 6.5 billion USD, up 23%), computers, electronic products and components (reached 28.3 billion USD, up 6.4%); footwear of all kinds (reached 5.1 billion USD, up 2.5%); rice (reached 3.8 billion USD, up 38.3%), vegetables and fruits (reached 4.4 billion USD, up 86%); cashew nuts (reached 1.7 billion USD, up 26%); coffee (reached 1.2 billion USD, up 19%)...

Third , Vietnam's trade deficit with the Asia-Africa region has decreased sharply. Imports mainly focus on input materials such as machinery, gasoline, textile and garment materials, footwear, etc. from traditional markets such as China, Korea, Taiwan (China), and ASEAN to serve domestic production and consumption needs and especially export to the world, contributing to maintaining the country's overall trade surplus.

Fourth , import and export activities with the Asia-Africa region are increasingly showing diversification. In addition to traditional markets such as ASEAN, Korea, Japan, China... new markets and niche markets are also being promoted and exploited well, with good import and export growth in the context of most market regions declining such as the African region (up 5.7%), the Middle East region (up 1.7%).

Fifth, the gradual decline in imports and exports in the final months of the year has shown a recovery in import and export activities.

These results are the result of the efforts of ministries, branches and businesses, notably the Ministry of Industry and Trade and the Asia-Africa Market Department. In 2023, the Department has made efforts and successfully implemented many activities and tasks under the direction to promote trade relations between Vietnam and countries in the Asia-Africa region.

Promote FTA negotiations and promote economic cooperation

In 2023, in order to promote and deepen economic and trade relations between Vietnam and partner countries in the region, the Asia - Africa Market Department has focused on negotiating and completing legal documents on trade with partners to facilitate Vietnam's economic and trade cooperation activities.

The ceremony to hand over the list of key tasks for 2023 between the Ministry of Industry and Trade of Vietnam and the Government of the Guangxi Zhuang Autonomous Region Party Committee took place in March 2023.

The conference on connecting Vietnam - China (Guangxi) economic and trade cooperation in the new period also took place in March 2023.

Accordingly, the Asia - Africa Market Department has participated in, negotiated and signed 15 cooperation mechanisms/agreements with partner countries in the region such as: Memorandum of Understanding on rice trade cooperation with Bangladesh; Agreement on promoting bilateral trade with Cambodia; Agreements on promoting trade cooperation with China, Korea, Australia; Coordinating to promote the signing of FTA with Israel and negotiating CEPA with UAE...

At the same time, in the context of declining import demand from major markets, the Asia - Africa Market Department has coordinated with the Trade Office to support businesses in seeking trade opportunities and expanding import-export activities to new markets to limit dependence on traditional markets.

In particular, in 2023, by continuously monitoring the customs clearance situation at border gate areas, the Asia - Africa Market Department proactively worked with Chinese partner agencies, relevant localities of China and Vietnam to take measures to divide traffic, increase working hours of border gates, and reduce customs clearance time for cargo vehicles. Therefore, the congestion situation was quickly resolved.

Update and promptly transmit information about export markets

Although trade in goods has shown more positive signs in the last months of 2023, the world economic situation and the Asia-Africa region are still forecast to face difficulties. In that context, in 2024, the Asia-Africa Market Department believes that it is necessary to continue to effectively implement the directions of senior leaders and leaders of the Ministry of Industry and Trade in market development work. In particular, focusing on implementing the results of high-level visits, meetings, and documents that the Ministry of Industry and Trade has signed with partner agencies of other countries to open up the market, remove current difficulties and obstacles in trade cooperation, and promote import and export with other countries.

At the same time, continue to promote market opening work. In addition to trying to maintain traditional markets, the Asia - Africa Market Department will focus on supporting localities to promote local strengths to market areas with much room and potential such as Africa, the Middle East, South Asia, etc.

“ In 2024, in addition to coordinating with relevant agencies and units to remove barriers to Vietnam's export goods, the Asia - Africa Market Department will actively monitor, update and provide information on the markets of partners that affect Vietnam's trade activities to businesses, associations and localities; closely follow market developments and customs clearance at border gates to promptly inform businesses as well as make related recommendations " - informed the Asia - Africa Market Department.

Source link