VCN – Mrs. Jolie Nguyen, CEO of LNS US LLC (USA), said that as China is gradually being excluded from the US market, Vietnamese enterprises have a lot of opportunities to promote exports of furniture, seafood, rice, coffee, and vegetables to the US market.
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Exports of potential items such as wooden products, seafood, rice, coffee, vegetables and fruits to the US is unremarkable. Photo: Nguyen Thanh |
According to Ms. Jolie, the 333 million market requires high standards and quality for imported products, with food and pharmaceuticals being monitored by the US Food and Drug Administration (FDA). The market also promotes consistency, competitiveness, and fair nature.
The fact that China is gradually being excluded from the US market created a great opportunity for Vietnam because the purchasing power of the market is big with increasing prices. Additionally, demands in the market are diverse, while the environment and policies are favorable for Vietnam.
Findings from the General Statistics Office (Ministry of Planning and Investment) showed that exports from Vietnam to the US are expected to reach a turnover of US$100 billion in 2022, a 22.2% increase compared to 2021.
Regarding agricultural products, the US$11.9 billion turnover made the US the largest import market in Vietnam, taking up to 27.5% of the market share. Nevertheless, other commodity groups such as furniture, seafood, rice, coffee, and vegetables have not reached their maximum export potential. Therefore, enterprises need to be aware of the opportunities and promote exports of these products in the near future.
Ms. Jolie also noted that although demand for agricultural products from Vietnam is rising significantly, the US market still has high standards, requiring businesses to conduct long-term business partnerships with their customers, as well as putting quality as the top priority.
She claimed that Vietnam is facing fierce competition from Thailand, Taiwan (China), Mexico. The US also maintains high quality in agricultural products although only 17% of the population work in that field.
“Agriculture in the US has already implemented technology and high-tech machinery, which not only reduces the number of workers, but also increases the quality and output. Vietnam is currently facing difficulties preserving products during transportation. Due to its remote geographical location, products might not keep their original quality and freshness once they arrive in the US.”
Therefore, Ms. Jolie highlighted the importance of knowing the state and federal laws as well as specific regulations in the market. Local firms need to conduct research thoroughly before entering a new market, especially niche ones. Assessing the potential of their products in the market is also crucial.
“Business can take part in an existing distribution system in case of facing difficulties infiltrating the market with their own brand. They should also be aware of information regarding strategic partners, regulations, and agreements on specific product lines.”
Ms. Amy Nguyen, CEO of Dragonberry Produce, an enterprise with years of expertise regarding exporting to the US, stated that organizations should acknowledge and be ready for a 5–10-year business partnership, as it can be very difficult to promote growth if they only enter the market for a short period of time.
Moreover, quality checks must be carried out regularly to ensure the products do not exceed the pesticide residues limit. Businesses also need to conduct research on preservation technologies so that they can transport goods by sea instead of air to reduce cost and improve quality, which contributes to overall competitiveness.
With shopping online becoming more popular, Vietnamese enterprises can take advantage of large e-commerce channels like Amazon to promote and sell their products. Nevertheless, they should be capable of making their products stand out from competitors, which can be achieved through product design, evaluation, and marketing strategies.
By Thanh Nguyen/ Nhat Minh