Vietnamese trade offices abroad support businesses

14:34 | 12/02/2016 Trade

(VEN) - Vietnamese commercial counselors in some key markets gave recommendations for export businesses to make most of opportunities provided by free trade agreements.

Vietnamese trade offices abroad support businesses

The signing ceremony of a memorandum of understanding on trade promotion between the Vietnam Trade Promotion Agency and Italy’s Unimpresa

Vietnamese Trade Office in the US Minister Counselor Dao Tran Nhan:

Paying attention to trade barriers

Vietnam’s exports to the US strongly increased in 2015, reaching an estimated US$39 billion, an increase of 37 percent compared to 2014. This figure represents the highest growth in Vietnamese export turnover to the US since 2005.

To promote exports and enter the US market, Vietnamese businesses need to pay attention to drastic competition from foreign companies, complicated rules, trade and technical barriers. Regarding businesses that have achieved success in the US, they must strictly follow the latest information and market developments in order to respond.

The Vietnamese Trade Office in the US participated in many cases involved in policies negatively affecting Vietnamese goods in 2015. For example, the US government established an interdisciplinary working group against illegal actions in terms of fish catching and farming, causing difficulties for Vietnam’s seafood exports to the US. In addition, they released the final rule on establishing an inspection program for fish, including catfish in late November 2015 managed by the US Department of Agriculture. The trade office quickly informed Vietnamese export businesses and cooperated with ministries and agencies to seek appropriate solutions.

Vietnamese Trade Office in Italy Commercial Counselor Bui Vuong Anh:

Understanding quality regulations in the EU

In addition to key exports to the EU such as coffee, footwear, garments and textiles, seafood, wood and wood products, many Vietnamese goods have not yet entered this market as they have not met quality standards and regulations, especially food and foodstuffs.

The Vietnamese government needs to make greater efforts in improving investment attraction policies with support for small and medium-sized enterprises. In addition, support policies need to focus on issues related to accessing export markets and financial resources and meeting quality standards. Businesses also have to improve product quality and focus on investment and new technology. Providing the latest information in terms of the European and Vietnamese markets, organizing groups to visit fairs and exhibitions and seeking partners all remain vital.

Vietnamese Trade Office in France former Commercial Counselor Nguyen Canh Cuong:

Promoting cooperation with distributors

France is one of Vietnam’s most important trade partners with large market size and purchasing power. However almost all Vietnamese exports to its market have only accounted for small market share from 1.5-2.5 percent, except footwear and mobile phones with around 10 percent each.

After the EU-Vietnam Free Trade Agreement takes effect, Vietnamese exports to France including garments and textiles, footwear, furniture, agricultural products and seafood are expected to strongly increase. These items can compete with the same kinds of products available in the French market.

In addition to opportunities, risks in terms of commercial disputes and anti-dumping lawsuits may increase. If Vietnamese businesses lack good experts and lawyers, they will bear losses in international transactions. Moreover, commercial fraud may increase, causing difficulties for Vietnamese businesses.

Vietnamese businesses have to promote investment in manufacturing products following European standards and strengthen cooperation with foreign distributors. Overseas Vietnamese companies in the EU may play an important role in providing information and seeking cooperation opportunities for domestic businesses.

Vietnamese Trade Office in Australia Commercial Counselor Nguyen Hoang Thuy:

Building sustainable development brands

According to the ASEAN, Australia and New Zealand Free Trade Agreement, Australia and New Zealand would eliminate tariffs for Vietnamese goods by 2020. In addition, the Trans-Pacific Partnership will also benefit Vietnam such as strengthening investment attraction and enhancing bilateral trade.

However non-tariff barriers such as product quality, food safety and hygiene in Australia remain strict. Many Vietnamese businesses lack knowledge about import and quarantine regulations in Australia. Therefore, they will face challenges and difficulties in exports to its market. In addition, Vietnamese businesses have not paid attention to and promoted investment in building brands for themselves.

Thu Hang & Phuong Lan