|Seafood production for export|
Exploiting potential markets
2023 is forecasted to have many difficulties and challenges. Therefore, to continuously promote import, export, and develop foreign markets, according to the Ministry of Industry and Trade, it is necessary to implement many solutions, including promoting the role of Vietnamese trade agencies abroad. Regularly organize briefings between business agencies, associations, and businesses to support localities, industry associations, and businesses to expand, diversify markets, and supply chains, overcome technical barriers to penetrate new markets, and renew trade promotion to develop cross-border e-commerce to promote exports.
According to representatives of some foreign trade agencies, Vietnam has much potential to export to other markets. However, businesses need to focus on timely grasping new trade policies and important changes in import and export to have specific plans for trade promotion.
For example, for the Chinese market, according to the representative of the Vietnam Trade Office in China, statistics of the Chinese Customs, import and export turnover between Vietnam and China in 2022 reached US$234.9 billion, up 2.1%; import turnover reached US$146.9 billion, up 6.8%, export turnover reached US$87.9 billion, down 4.7%, the trade deficit from China so far was worth US$59 billion. Thus, the total import-export turnover between the two countries exceeded US$230 billion.
Among the 10 ASEAN countries, Vietnam is China’s largest trading partner, the largest import partner and the second largest export partner after Malaysia. On a worldwide scale, Vietnam is China’s sixth largest trading partner among all countries and territories having trade relations with China, and China’s fifth largest export market and 10th largest import market.
For the Asia-Africa market, in 2022, the import-export turnover between Vietnam and the Asia-Africa region reached US$500 billion, accounting for nearly 68% of Vietnam’s total import-export turnover with the world, making an essential contribution to the country’s import-export achievements.
According to the Asia-Africa Market Department, to expand the market, exports must first be maintained as they have been. To do so, we must ensure the quality requirements of exported goods, ensure “green export”, and export according to market demand rather than what we have. Additionally, we must ensure the smooth export of goods, open export procedures, convenient logistics, and master and update import policies of the host country.
As for the market expansion, the Asia-Africa Market Department said that in 2023 they would continuously promote export expansion to some markets such as China, South Asia, and Africa. Notably, the African market also needs to focus on development since Vietnam only accounts for 0.6% of Africa’s import market share of US$600 billion per year.
In the UAE market, according to the Vietnam Trade Office in the UAE, Vietnamese goods have many opportunities to export to the UAE due to high consumer demand while domestic production has not been met. Truong Xuan Trung, in charge of the Vietnam Trade Office in the UAE (concurrently in charge of Qatar), said that this was a unique market, and production could not meet domestic demand. Therefore, Vietnam should export vital commodities such as seafood; agricultural products (seedless lemon, dragon fruit, watermelon, fresh coconut, pomelo, cashew, and pepper); bags, suitcases, and wallets; wood and wood products; shoes and electrical products, electric cables because the market size of this item is very large. However, the Vietnam Trade Office representative in the UAE noted that although the UAE was an open market, the competition was fierce regarding price and quality. Therefore, any goods with competitive prices will be imported, even though Vietnamese enterprises are exporting to the UAE, but if the prices are higher, they will prioritize importing goods from other businesses with lower prices.
Focus on connecting businesses
In 2023, the export growth target is 6%, so the export turnover in 2023 is expected to reach US$393-394 billion, an increase of about US$22 billion in the export value of goods compared to 2022.
At the recent trade promotion conference, Minister of Industry and Trade Nguyen Hong Dien said that trade promotion activities need to continuously do well in collecting information, connecting markets, and connecting the supply and demand of goods between us and other continents, countries, and businesses. This helps domestic enterprises adjust and determine the right production and business strategies and plans to suit the market’s needs. In addition, we should pay attention to connecting domestic and foreign enterprises in supplying materials and fuels, consuming available products, and developing new products according to consumer needs and tastes.
In particular, the Ministry of Industry and Trade leader also emphasized that by all means, traditional markets and goods must be maintained and developed. But, simultaneously, make maximum efforts to develop new markets and products (such as markets in West Asia, South Asia, Africa, and Latin America) for Vietnamese goods to reach out further and better meet the world’s demand.