HCM City (VNA) – Experts gathered at a forum in HoChi Minh City on April 25 to seek ways to untangle knots in terms of capitaland market for exporters in the context that the ongoing conflicts in manyregions are disrupting international trade.

Truong Dinh Hoe, General Secretary of the VietnamAssociation of Seafood Exporters and Producers (VASEP), said the country sawincreases in orders in the first quarter of this year, notably aquatic productexports rose nearly 7% year-on-year to nearly 2 billion USD.

In terms of market, many businesses were hesitantto export to the European Union (EU) due to the conflicts, while shipments tothe US, China and Japan grew significantly, he said.

Hoe noted that although Vietnam has self-suppliedmore than 70% of aquaculture materials, the hikes in the prices of aquatic feedand packaging materials, and transport costs have affected domestic productionand business.

Garment-textile exports also rebounded in thefirst months of 2024, reaching some 9.5 billion USD, up 9.6% year-on-year,earning the country the third position in the global market, only after Chinaand Bangladesh, according to Tran Nhu Tung, Vice President of the VietnamTextile and Apparel Association (VITAS).

Tung, however, pointed to rising production costsand higher requirements by clients as double pressures on domestic exportersalthough their orders are piling up.

Chairman of GC Food JSC Nguyen Van Thu said thecompany’s customers in the Middle East have suspended their orders due totransport and payment challenges, and declining demand.

Meanwhile, GC Food is facing exchange rateproblems in its main markets, comprising the Republic of Korea, Japan andChina, he added.

Although the world's demand is recovering thanksto low inventories of many products, experts advised businesses to be ready forconflict-induced lingering supply chain and transport issues.

Head of the Vietnam Trade Office in Saudi ArabiaTran Trong Kim said the Red Sea unrest has caused declines in orders, andaffected trade between Vietnam and Saudi Arabia.

He suggested agencies and organisations at homefurther provide updates for associations and businesses to make preparednessfor difficulties in Saudi Arabia and Yemen in the time ahead, saying Vietnamesefirms should be cautious in trading with partners in conflict-hit regions.

The Ministry of Industry and Trade also advisedenterprises to diversify goods supplies and export markets, and stay updatedwith market developments./.