Electronic components are produced for export at Youngbag Vietnam Co in Vinh Phuc province. (Photo: VNA) Pham Thi Ngoc Thuy, Director of the Office of the Research and DevelopmentDepartment of the Private Economy described the diversification of exportmarkets as a matter of survival for businesses in the current context.
However, the firms' traditional markets would not be easily changed in one totwo years, she said.
To help exporters find new markets to reduce their dependence on sometraditional markets and increase their business opportunities, Thuy emphasisedthe leading role of state agencies, ministries and sectors in reviewing whethernew markets had a trade agreement with Vietnam and drawing up policies andmechanisms that could facilitate Vietnamese exports to these markets besidesthe firms' trade promotion activities.
Closer cooperation between exporting enterprises and the State agencies andministries in researching export markets would also be necessary, Thuy said.
Economist Dinh Trong Thinh said in the past time, some Vietnamese firms havefallen asleep over the victory they had in traditional export markets. This isone of the reasons for their loss of some orders into the hands of rivals, Thinhsaid.
Thinh said he hoped that not only garment exporters but also leather, footwearand wood firms would draw lessons and innovate their production and marketaccess processes.
But businesses needed the companionship of State agencies in expanding theirexport outlets, especially to those which Vietnam has signed free trade agreements(FTAs) with, he said.
Businesses also need to enhance their links and connect with trade offices andembassies in countries Vietnam has inked trade agreements with so that they canboost their exports and enjoy tariff incentives.
This move also helps firms reduce the cost of market access and of finding andcapturing partners.
Tran Thanh Hai, deputy director of the Import and Export Department, Ministryof Industry and Trade agreed. He said the efficient exploitation of FTAs wouldopen up great opportunities for local businesses.
Vietnam had 15 FTAs under operation, Hai said, adding that these FTAs coveredmost of the major markets and there was still high potential in increasingexports there.
Trade promotion was also necessary to help local businesses find new customers andnew business opportunities.
He added that trade promotion activities also played a big role in boosting thechances of local businesses being able to enter foreign markets and grasp therequirements of those markets.
The Ministry of Industry and Trade (MoIT) was focusing on diversifying sourcesof market information for businesses, especially from Vietnam trade officesabroad. It had websites providing market research for local businesses to helpthem find more opportunities abroad.
According to the General Statistics Office (GSO), Vietnam’s trade turnoverreached 316.65 billion USD over the past six months of 2023, a decrease of 15.2%compared to the same period last year.
During the period, the country exported 164.45 billion USD worth of goods tooverseas markets, down 12% year-on-year.
This was due to the impact of the global economic slowdown, reduced consumerdemand and difficulties in domestic production, the GSO noted.
Export turnover to key markets decreased, including the US (22.6%), theRepublic of Korea (10.2%), the EU (10%), ASEAN (8.7%), Japan (3.3%), and China(2.2%).
In a bright spot, the country had five groups with an export turnover of 10billion USD or more. Of them, electronic products, computers and parts led with25.21 billion USD, followed by phones and components (24.29 billion USD);machinery, equipment, tools and spare parts (19.73 billion USD); textiles (17.75billion USD); and footwear (10 billion USD).
To further promote exports, the MoIT has recommended strengthening tradepromotion activities targeting new and potential markets such as India, Africa,the Middle East and Eastern Europe as well as markets that are less affected byinflation and have positive growth, such as in ASEAN.
The ministry also suggested a focus on new markets where the middle class isgrowing, such as the E7 emerging markets (China, India, Russia, Turkey, Mexico,Indonesia, and Brazil) and halal markets such as the Middle East, Malaysia andBrunei./.
VNA
