10:05 | 24/03/2016 Trade
(VEN) - With export revenues of almost US$33.5 billion in 2015, Vietnam is among the top 15 countries exporting to the US. The US is also Vietnam’s largest export market. It is expected that Vietnamese exports to this market will increase to US$38 billion this year.
According to the Ministry of Industry and Trade, the US has become Vietnam’s largest market in terms of exports and the biggest market in terms of Vietnam’s trade surplus in recent years. Vietnamese major exports to the US are textiles and garments, wood furniture, footwear, briefcases, umbrellas and bags.
The US is currently Vietnam’s largest partner contributing almost 20 percent of the country’s total export revenues.
Preferentially-taxed items such as textiles and garments, footwear and seafood have become major exports with revenues of more than US$40 billion annually, of which exports to the US accounted for a third.
According to the Ministry of Industry and Trade’s American Market Department Director Nguyen Duy Khien, the US has great potential for Vietnamese businesses since it is the world’s largest importer , has a high population, high per capita incomes and a shopping habit. Moreover, the US is a multiracial country and people’s demands vary. Despite continuous growth, Vietnamese exports to the US accounted for a mere 1.3 percent of the US’ total import purchases meaning that there is much room for Vietnamese exports to this market.
The Trans Pacific Partnership (TPP) agreement which was recently concluded would create bigger opportunities for Vietnamese goods as a result of significant reductions in tariffs which would help sharpen the competitive edge of Vietnamese goods. It is expected that Vietnam will lead Asia in terms of exports to the US which would exceed US$180 billion by 2020.
However, foreseeing these ample opportunities, many foreign businesses intend to come to Vietnam to buy goods for export to the US or set up their factories in Vietnam to export goods to this market via making the most of TPP opportunities. In doing so, they will pose major challenges for Vietnamese businesses and a need for them to renew production.
According to experts, to stay in business and increase exports to the US, Vietnamese businesses need to learn about this market in terms of quality, price, shopping seasons and delivery time. In particular, it is important to accurately schedule shipping from Vietnam to the US in order to reduce expenses. The Vietnamese government also needs to carry out further reforms in terms of administrative procedures, services and infrastructure to save time for businesses.
Domestic businesses are recommended to not only focus on product quality but also ensure stable supply, quick shipping and good prices. As for non-branded footwear, domestic businesses are recommended to cooperate with foreign partners for processing in Vietnam, rather than flying to the US to look for partners. Those businesses that have established their own brand names should publicize themselves on their websites in order to easily find partners.