The Vietnamese economy is expected to continue to recover in the last month of 2022. This is supported by strong economic fundamentals, flexible monetary policies and a faster than expected recovery in manufacturing, exports, services and domestic consumption.

SIMPLY DIFFERENT BUT YET OPTIMISTIC

At the 2022 Export Forum organized by the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) on December 8, 2022, experts expect Vietnam’s exports to remain the bright spot with an attractive investment environment.

Ho Chi Minh City in particular is considered a bright spot in the area of ​​import and export of goods, especially export. Accordingly, the total export turnover of goods by city-owned enterprises through the port of Ho Chi Minh City, including crude oil, reached nearly USD 36 billion in the 10 months of 2022, an increase of more than 10% compared to the same period in year 2021.

The structure of Ho Chi Minh City’s export group, the group of computers, electronic products and components accounted for the largest share (reached nearly US$13.9 billion, up 1.9%). Meanwhile, groups of traditional products saw strong growth, such as: textiles and apparel (reached nearly US$3.8 billion, up 42.7%); agricultural products (reached US$3.6 billion, up 6%), seafood and seafood products reached US$1.1 billion, up 69.7%…

In terms of export market, China remains the largest export market for companies in Ho Chi Minh City. Export sales in the 10 months of 2022 reached more than USD 8.2 billion, increasing 7.3% over the same period and accounting for almost 23% of exports.

The second is the US market (it reached $6.3 billion, up almost 20%). In particular, for the European Union (EU) market, the export value of Ho Chi Minh City companies is more than USD 4.9 billion, up 19.7%. Next is the Japanese market (which hits more than $2.4 billion, up 24%).

According to experts, although Vietnam’s export growth will be hampered to some extent with the forecast that the difficulties in the global economy and world trade will continue until early 2023.

However, according to Mr. Tran Phu Lu, deputy director of ITPC, this is also a new opportunity for Vietnamese exporters to step up and sustain the growth of commodity exports based on effectively utilizing the country’s advantages. That brings.

Mr. Lu said that Vietnam has been and still is one of the most important manufacturing hubs in the global supply chain. Especially in the areas of agricultural products, textiles, electronic chips and automobiles. Evidence that many world famous companies have increased their investments and business in Vietnam, such as Apple, Intel, Ford, General Electric, Pepsi, Coca-Cola, Nike, Microsoft, Citi Group, P&G…

Sharing Vietnam’s export potential, Mr. Alex Tatsis, Chief Economic Officer, US Consulate General in Ho Chi Minh City, said Vietnam is the 10th largest trading partner of the US and a key point in the supply chain for essential goods.

US supply chain links with Vietnam are bi-directional. Vietnam imports computer chips, hardwood, cotton and animal feed from the United States to use as raw materials for domestic production of semiconductors, furniture, clothing and seafood.

Improving supply chain resilience is a top priority for the United States. Accordingly, the United States is also investing to help Vietnam strengthen its role in the global supply chain in the long term.

Mr. Alex Tatsis said that in recent years Vietnam has been one of the countries that have benefited the most from the shift in supply chains from China. This shift has put pressure on Vietnam’s logistical infrastructure and customs operations.

“USAID is working with the General Department of Customs to adjust border clearance procedures and reduce congestion at the main border gate, including the port of Cat Lai – the largest container shipping center in Vietnam, to assist in customs clearance procedures, Alex Tatsis informs.

STRUCTURING AND FIND NEW MARKETS

At present, Vietnam’s export goods have gradually confirmed the brand’s quality and reputation, especially agricultural, forestry and fisheries products, textiles, shoes, telephones and accessories, and electronic goods. These products account for a large part of the export structure.

According to experts, in order to be prepared for export activities in the new situation, export companies would have to be restructured.

dr Tu Minh Thien, economist, said that the restructuring of export companies to adapt to the changes in the new conditions for small and medium-sized enterprises is an important issue in the current context.

When restructuring, exporters need to pay attention to the following points: building business strategies for each specific product, each target market; Choosing market segments and distribution channels appropriate to the product and size of the business; Focus on understanding the tastes, trends and characteristics of the market through international seminars, international fairs and exhibitions.

At the same time increasing products in niche markets, approaching new markets. Invest in developing organic or organic product lines that are eco-friendly and health-friendly; promote professional branding and development.

In addition to restructuring, attracting companies to expand investment is boosting exports by Vietnamese companies.

Information about 63% of Japanese companies will continue to expand their investments in Vietnam in the next 1-2 years. Mr. Mizushima Kozo, chairman of the Japan Business Association in Ho Chi Minh City (JCCH), said Japanese investors have high hopes for Vietnam’s economic growth.

Mr. Matsumoto Nobuyuki, chief representative of Japan Trade Promotion Organization in Ho Chi Minh City, added that many Japanese companies plan to expand their business to high value-added fields such as: automobiles, electric appliances in the near future in 2023 etc.

Vietnam in particular is also very attractive for Indonesian companies. According to Mr. Agustaviano Sofjan, Consul General of Indonesia in Ho Chi Minh City, the bilateral trade target between Vietnam and Indonesia is USD 15 billion by 2028. This shows that investors see the attractiveness of Vietnam thanks to its location, strategic geography and politics to sustain economic growth.

Despite the forecast that the global economy and trade will face difficulties until early 2023, Vietnam’s export growth will depend on many factors, including the economic situation in Vietnam. However, this is also a new opportunity for Vietnamese exporters to change and expand their exports.