This is the warning given by Trade Counselors as well as representatives of many associations at the Trade Promotion Conference with the Overseas Trade Office system organized by the Trade Promotion Department - Ministry of Industry and Trade on July 29.
Sharing at the conference, Mr. Truong Van Cam, Vice President of Vietnam Textile and Apparel Association said that after 6 months, the turnover export The industry's total value reached more than 20 billion USD, up 5% over the same period last year. Currently, businesses in the industry are very interested in information about what mechanisms Bangladesh and Malaysia have for green production and reducing production costs for businesses by 15-20% lower than in Vietnam. Along with that is information about geopolitical and political fluctuations and the impact of fluctuations on market demand.
According to Mr. Cam, along with increasing exports, Vietnamese enterprises are currently facing many measures. trade defense of countries. Recently, Indonesia also announced that it will impose defense tariffs on exports, requiring businesses to have solutions.
“The US currently has regulations against forced labor, in addition to requirements related to greening changes and supply chain audits from Germany and the EU. These are warnings that businesses need to avoid losses,” said Mr. Cam.
Ms. Phan Thi Thanh Xuan, General Secretary of the Association shoe leather Vietnam said that after the first 6 months of the year, leather and footwear reached 6.5 billion USD, up 5.7% over the same period last year and could reach 26-27 billion USD in turnover for 2024. Besides increasing exports to countries with fast growth rates such as the EU, businesses are also facing the risk of anti-dumping. Ms. Truong Thi Chi Binh, Association of Supporting Industries, also said that recently, many Chinese businesses have come to Vietnam to produce, and with that comes the risk of investigation into the origin of goods.
According to Mr. Do Ngoc Hung, Vietnam Trade Counselor in the United States, the first 6 months of the year had a surplus of 46 billion USD. It is forecasted that the United States will continue to be Vietnam's largest export market in the last 6 months of the year with the expectation that for the third consecutive year, total export turnover will reach over 100 billion USD in 2024, exceeding the target set at the beginning of the year.
According to Mr. Hung, the United States is imposing many barriers on Vietnamese export enterprises, typically trade defense measures through anti-dumping, anti-subsidy and transshipment investigations. As of June, the United States was the country that initiated the most trade defense investigations on Vietnamese export goods, with 11 cases.
“Since July, Vietnam has had 57 export shipments that are being stopped for review. The shipments that were refused import with a value of 11 million USD are issues that businesses need to pay attention to regulations to increase domestic content, ensuring requirements on origin of goods when exporting to the US market in the coming time. When the US tightens measures, businesses must also aim to protect sustainable production of goods,” Mr. Hung recommended.
Ms. Tran Thu Quynh, Vietnamese Counselor in Canada, also said that since the beginning of 2024, Canada has launched a new investigation into steel wire products exported from Vietnam. Along with increasing market protection for textiles, this country also has other forms of protection such as for electrical equipment with a waiting time for assessment by Canada's protection agency of up to several years.
Need mechanism for domestic enterprises to develop
At the conference, Mr. Nguyen Chi Sang, Vice President and General Secretary of the Mechanical Association, said that compared to the textile and footwear industries, mechanical exports face much more difficulties. To support mechanical export enterprises, it is necessary to summarize what has been done in the past 8 years of supporting industry. Mr. Sang raised the issue of reducing imports of products that domestic enterprises can produce.
“Vietnam has a plan to develop railways (urban railways, trans-Vietnam railways) with a total investment of nearly 200 billion USD by 2045. The same goes for wind power. With a market of up to nearly 400 billion USD, we currently do not have a strategy to prepare and support domestic enterprises to participate. I suggest that the Ministry of Industry and Trade have a specific roadmap to get products from national public investment so that enterprises can participate,” Mr. Sang proposed.
Citing the example of Iran being banned but still being able to build its own railway system after receiving technology transfer from Siemen with a localization rate of 30-50%, Mr. Sang said that if there was a mechanism like the previous hydromechanics and hydroelectricity in Vietnam and there was technology transfer, Vietnam would master the technology in just 5 years. This would open up a huge market for domestic enterprises.
Citing an example of market protection, Mr. Bui Trung Thuong, Vietnam's Trade Counselor in India, said that India started out slower than other countries such as Japan and China in developing supporting industries, but now they are very strong. To develop the textile and footwear industry, they have a slogan "For textile and garment materials, remember India". With persistent implementation, they have now become self-sufficient. Also explaining why Vietnam's supporting industry has not developed, Mr. Thuong said that because we opened up too quickly, businesses died before they could grow strong, while in India, they kept it for a long time, when domestic businesses grew strong, then opened up to other countries.
Deputy Minister of Industry and Trade Nguyen Hoang Long said that information from the units will be the basis for localities, associations, and businesses. build Market development plan, export strategy, production and business suitable, meeting export requirements in the coming time.
“There needs to be a solution to prevent Vietnamese enterprises from becoming transit channels, laundering goods, which can easily lead to anti-dumping lawsuits in the future,” said Mr. Bui Trung Thuong, Vietnam Trade Counselor in India.
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