Enterprises urged to explore niche markets while exports decline
Vietnam, on the second day of August, is witnessing an unexpected turn of events.
In order to effectively deal with decreases in exports in important markets, businesses should strive to find specialized markets.
Based on the report provided by the Ministry of Industry and Trade during a recent gathering with trade advisors, Vietnam's shipments to notable markets have experienced a decrease thus far in the year, primarily attributed to the global decline in consumption.
Major sectors including the clothing and fabric industry, shoe manufacturing, timber, machinery, telecommunications, and related parts experienced significant drops of more than ten percent in their export figures to major destinations like the United States and the European Union.
Deputy Minister of Industry and Trade, Đỗ Thắng Hải, emphasized the significance of bolstering trade promotion as a pivotal factor for fostering economic growth by expanding markets and boosting exports.
Trưởng Văn Cẩm, the Deputy President of the Vietnam Textile and Apparel Association, stated that the majority of textile and garment companies' production capacity, approximately 85 percent, is dedicated to exports. To effectively grow their businesses, these firms require precise market insights.
Phan Thị Thanh Xuân, the leader of the Vietnam Leather Footwear and Handbag Association, expressed concerns about the recent rules implemented in markets such as the EU and US. These regulations have become a significant challenge for local producers and exporters. They urgently require assistance in obtaining the latest trade policies and regulations to navigate the obstacles faced in export markets.
The timber sector is predicted to experience a decline in overseas sales this year following a period of significant growth lasting 15 years. Ngô Sỹ Hoàng, Deputy President of the Vietnam Timber and Forest Products Association, stated that in order to revive export progress, the wood industry requires aid to penetrate fresh markets and effectively communicate Việt Nam's determination in upholding its obligations pertaining to sustainable logging practices.
Trần Ngọc Quân, from the Vietnam Trade Office in Belgium, reports that the European Union is getting ready to release fresh guidelines concerning the environment, sustainable progress, carbon discharges, the entitlement to fix and reuse, human rights, and measures to combat deforestation.
These rules raise an issue as Vietnamese businesses would find it challenging to export products bearing their own labels due to the EU's demand for a comprehensive network for acquiring and treating goods for the purpose of recycling.
According to Quân, the EVFTA presented chances for enhancing exports to the EU. However, Quân also highlighted that the EU is actively transitioning towards a circular economy. As a result, domestic businesses need to act swiftly to adapt to this change, as the implementation of new regulations will significantly impact exports in the near future.
According to Quyen Manh Do, the leader of the Vietnam Trade Office in the United States' Houston Branch, there has been a noticeable decrease in the export of Vietnam's main products to the US. In order to boost exports to the US, businesses must redefine their strategies for production and commerce. This involves improving the quality of their products, adopting innovative production technologies, as well as gaining a better understanding of the regulations governing exports to the US.
Quyền also encouraged companies to identify specialized markets as a strategy to manage the consequences of diminished demand. Moreover, boosting trade promotion efforts would be beneficial in seeking avenues to address surplus inventories.
Hải called on Vietnamese trade advisors to enhance their analysis of markets and policies in order to offer expert advice on strategies for market growth and trade interactions.
According to him, it is important to prioritize conducting research and examining policies and markets. The objective is to promptly suggest solutions for eliminating the hindrances of technical and non-tariff barriers in exports.
He emphasized the need for relevant organizations to collaborate more effectively in order to increase exports to major markets and facilitate the involvement of businesses in global supply chains.
Hải emphasized that businesses need to adhere closely to the standards set by crucial foreign markets when it comes to the traceability of product origins and production processes if they wish to grow their exports.
