Diversify markets to boost exports

Diversify markets to boost exports

Although exports are still recovering strongly, unfavorable factors for Vietnam’s commodity exports are also appearing.

This comes from the slowing recovery of global trade due to the impact of the conflict between Russia and Ukraine, the outbreak of the disease and the “Zero COVID” policy in China. Therefore, in order to reduce dependence on some markets, experts recommend that businesses need to diversify markets and find new customers to boost exports.
Supply slows down
According to trade experts, China is the second largest export market and the largest source of imports for Vietnam. Therefore, the fact that this country is still implementing blockade measures due to COVID-19 will affect Vietnam’s processing, manufacturing and export industries in the coming months.
In fact, although export orders are abundant, production activities recover, and labor is stable, the main manufacturing industries are struggling in the “price storm” because most of the production costs. Input exports all increased, due to the double impact of the pandemic and the Russia-Ukraine conflict.
According to representatives of some businesses, the biggest difficulty is the negative impact of the COVID-19 pandemic and the sharp increase in input costs. In the current context, enterprises with a high proportion of domestically purchased raw materials will be more favorable.
The reason is that most industries import a lot of materials from China, while the country is implementing the Zero COVID-19 policy, causing the supply chain to slow down. Not only that, there was a time when it caused a serious congestion of goods at the border gate area, and at the same time was the direct cause of the decrease in border trade turnover between Vietnam and China over the past time.
On the other hand, exports through the land border gates of Vietnam – China still have problems. This is because many businesses of the two countries still choose to export under quota, which has many potential risks.
Moreover, traffic infrastructure and logistics services are still limited, so the risk of recurrence of serious congestion is entirely possible if not removed in time.
Finding new markets
Mr. Bien Tan Tai, Deputy Director of Binh Thuan Department of Industry and Trade shared, to ensure the export of goods, especially dragon fruit, Binh Thuan Department of Industry and Trade will discuss regularly with the Department of Industry and Trade of the northern border provinces. North to advise and support dragon fruit exporting enterprises to avoid concentrating on one border gate to limit the phenomenon of goods congestion when harvesting is in full swing.
In addition to the Chinese market, Binh Thuan will step up support businesses to participate in trade promotion activities abroad; in which, focusing on the markets of India, Pakistan, Bangladesh, Middle East countries and countries that have signed free trade agreements with Vietnam.
On the other hand, continue to support dragon fruit exporters to directly participate in foreign distribution networks already present in Vietnam such as Lotte (Korea), Aeon (Japan), Big C (Thailand). … through which product consumption and market expansion.
Faced with difficulties in exporting to the Chinese market, in the plan to export goods and products for the period 2012-2025, in addition to China, Australia, Korea, Japan, Son La province still considers Cambodia as a market. potential longan and plum exports.
In fact, there have been many cooperatives growing fruit trees in Son La successfully exporting agricultural products to Cambodia. For example, Chan Yen General Agricultural Service Construction Cooperative associated with plum exporters; Bao Lam General Agricultural Service Cooperative exports longan…
According to experts, Cambodia is a market close to Vietnam, but besides cooperatives taking advantage of opportunities to export agricultural products, many cooperatives ignore this market.
While if they want to export to Japan, Korea, the US, and Switzerland, cooperatives need to secure orders in large quantities and meet strict quality standards such as organic certifications. international agency, going through many complicated plant quarantine stages…
Moreover, the advantage in exporting agricultural products and goods to Cambodia is the short transport distance and many similar characteristics in terms of culture, market demand, and consumption habits.
Besides Cambodia, Laos is also considered as a near and potential market for agricultural products and commodities. Thanh Chan Fisheries Cooperative (Dien Bien) has an aquaculture nursery area of ​​nearly 5 hectares and the market for fingerlings is mainly in the districts outside the Dien Bien basin and exported to Laos, earning billions of dong. each year.
Mr. Tran Van Yen, Director of Thanh Chan Fisheries Cooperative, said that Laos and Vietnam currently have 7 pairs of main border gates, 18 pairs of auxiliary border gates, 8 pairs of international border gates, with 10 bordering provinces. This helps to facilitate trade, time and costs are greatly shortened compared to many other countries in Asia and the world.
According to experts, besides improving quality criteria, meeting fastidious markets, taking advantage of markets such as Laos, Cambodia, Thailand ..

In order to promote export of goods in the coming time, the Ministry of Industry and Trade notes that industry associations and enterprises participating in export activities need to apply risk prevention measures when entering into contracts with foreign customers. outside.
In particular, the Ministry of Industry and Trade also directs the entire Trade Office system in European countries to have the highest responsibility in supporting businesses that are having difficulties in import and export activities with Russia and Ukraine to find ways to transfer money to the EU. targeting suitable markets in Europe.
Because of the great dependence on imported materials from China, if the supply chain disruption is prolonged, it could negatively affect Vietnam’s exports in the coming months.
Along with that, the Ministry of Industry and Trade has been implementing many solutions synchronously; in which, focusing on effective implementation of FTAs ​​that have come into force, commitments in the World Trade Organization (WTO) and the ASEAN Economic Community.
In addition, the Ministry of Industry and Trade will continue to support businesses in market information, export promotion, taking advantage of commitments in signed FTAs ​​and through global value chains to find new market.
In addition, closely monitor the fluctuations of the international situation, proactively assess the impacts of such events on production, import and export of Vietnam in order to promptly make appropriate adjustments and responses. , enhancing information and support for associations and businesses.
On the other hand, the Ministry of Industry and Trade will coordinate with relevant ministries, branches and northern border localities to continue communicating and exchanging regularly with the Chinese side to discuss solutions to remove congestion, increase customs clearance performance, aiming for long-term stable and smooth customs clearance.

T&G Import-Export Joint Stock Company

Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi

Hotline: 02473010868

Email: hrm@tginterjsc.com

Website: http://tgimportexport.com

 

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