According to market experts, major world markets such as the US, Japan and the EU tend to import commodities from small nations, including Vietnam. This is a good opportunity for Vietnamese companies to increase shipments to these markets.
The US Chamber of Commerce forecast that Vietnamese goods exports to the US will grow rapidly, at 23-25 per cent against 2007, although the world’s largest economy is encountering a possible recession. Major exports to the US will still be apparel, textiles, wood furniture, footwear, seafood and electrical equipment.
The Vietnam Chamber of Commerce in the US said many US importers are diversifying exporting markets, including Vietnam, instead of several key exporting markets as before, especially China. Last year, the export of Chinese commodities into the US held a high growth rate and was ranked third in 2007. However, China often has trade conflicts with the US such as antidumping suits, and food hygiene and safety issues. Other risks against the US importers include low value of China’s yuan against the dollar and China’s high trade surplus.
The US Chamber of Commerce forecast that Vietnamese goods exports to the US will grow rapidly, at 23-25 per cent against 2007, although the world’s largest economy is encountering a possible recession. Major exports to the US will still be apparel, textiles, wood furniture, footwear, seafood and electrical equipment. Mr Ngo Van Thoan, Commercial Counsellor of Vietnam in the US, said, “US importers tend to shift imports from the US to other markets, including Vietnam. To grasp this chance, authorities and trade promoters should inform enterprises of the opportunity. Then, enterprises should actively step up communications and expand production as the US is a large market. Importantly, Vietnamese companies must satisfy the quantity of goods required by US partners. They also should actively and systematically approach the market. The consumption of the market is not in question, only our capability.”
Japan shifts production sectors to foreign countries
Japan, the world’s second largest economy and a major trade partner of Vietnam, is expanding its production in other countries and then re-importing because production cost in Japan is increasing while labour is falling short. For example, Japan is the world’s second largest software market after the US but it is seriously lacking IT engineers. On average, each year, the number of IT engineers falls by 3-4 per cent because of aging population. The same is true in labour intensive industries such as agriculture, forestry, engineering and light industry. This year the Ministry of Industry and Trade targets to increase exports to Japan by 17 per cent. According to the Vietnam Chamber of Commerce in Japan, this goal is within reach and growth may exceed 20 per cent. Importantly, Vietnamese companies should diversify exporting commodities and actively seek big Japanese importers to reduce production costs and have stable importing sources. Mr Vu Van Trung, Commercial Counsellor in Japan said, “I think Vietnamese should see Japan a potential market. Every enterprise should regard Japan as a strategic market. Second, the quality of commodities should be guaranteed, especially farming, forestry and fishery products. This market includes a lot of rivals, thus companies need to create national and company competitive edges. Another important factor is the market approach. Vietnamese companies should pay more attention to approaching the Japanese market because this is still a weak point. We must set up a stable consumption network to boost exports.”
EU continues high imports
The Ministry of Industry and Trade forecast that the EU will continue importing agricultural, forestry and fishery products, apparel, leather and footwear, bikes, bike parts, plastic products and others in 2008. Vietnam is of special concern for many EU importers. First of all, the quality and reputation of Vietnamese commodities have increased. Second, relations between Vietnam and the EU have entered a new high, with initial negotiations underway for the EU-ASEAN free trade agreement (FTA) in which Vietnam is a coordinator, Vietnam - EU cooperation and partnership agreement negotiations, and Vietnam - EU relations master programme (2006-2015).
To grasp these chances, apart from the efforts of companies in improving quality, it is necessary to have the assistance of competent bodies, especially chambers of commerce, in expanding trade promotion and markets. To this effect, Mr Nguyen Thanh Bien, Deputy Minister of Industry and Trade said, “Under the current context, commercial counsellors should do marketing better in foreign countries, especially the method and content of trade promotion. Commercial counsellors should put forward national trade promotion programmes in order to immediately arrange meetings for Vietnamese firms and foreign partners. Besides, we also encourage commercial counsellors to invite foreign companies, particularly distributors, wholesalers and retailers, to visit Vietnam to survey the market, exchange and sign business contracts, especially during trade promotion programmes. This is a new method in renovating trade promotion activities.”
This year, Vietnam set a goal to increase export value by 22 per cent against 2007. Although the world market is forecast to slow down as result of the recession in the US economy, Vietnam can still obtain high growth in trade with major trade partners.
P.V
Vietnamese
