On January 31, the Ministry of Industry and Trade in Hanoi held an information session on trade promotion with the Vietnamese overseas trade office system in January 2023.

THERE WILL BE MANY CHALLENGES FOR EXPORT

Mr. Vu Ba Phu, director of the Department of Trade Promotion (Ministry of Industry and Commerce), told the conference that many economies’ export growth will slow in 2022 amid the global economic slowdown. Vietnam’s commodity exports continued to overcome difficulties and maintained a high growth rate.

In particular, the total import-export turnover will reach over 732 billion USD in 2022, an increase of about 10% compared to 2021. This year, the export will reach about 371.5 billion USD, an increase of about 10, 5% and completes the National Assembly and Government surplus targets we have set (an 8% increase is planned).

The number of items with export sales exceeding USD 1 billion reached 39 items (an increase of 4 items compared to 2021), of which 9 items achieved export sales of over USD 10 billion (an increase of more than 1 item in the compared to 2021). . year 2021).

Although exports have risen sharply, according to Mr. Phu, dependence on the FDI sector is still high. The export turnover of FDI companies, including crude oil, accounts for about 74% of the total export turnover. The added value in export was not as expected.

In addition, the speed of market diversification for some products (such as vegetables and fruits) is still low, so it is not possible to meet the standards and quality requirements of the markets, to use incentives from signed free trade agreements in a meaningful way. The transition from unofficial export to official quota is still slow.

In 2023, according to the General Department of Customs, the total import-export value of the whole country is estimated at US$46.56 billion in the first month of 2023, down 17.3% month-on-month and down of 25% compared to the previous month corresponds to .in the same period of the previous year. Export sales were estimated at US$25.08 billion, down 13.6% month-on-month. Imports were valued at $21.48 billion, down 21.3% month-on-month. The trade balance reached a surplus of USD 3.6 billion.

According to the Ministry of Industry and Trade, the decline in the number of imports and exports in January 2023 is due to the country’s extended Lunar New Year and Lunar New Year holidays, on the other hand, the global economy is difficult for consumers and demand is falling, resulting in reduced order intake.

According to the forecasts, the world situation in 2023 will continue to be very complicated and unpredictable, with strategic competition of big countries, economic competition, intensified trade wars and military conflicts in Ukraine, which may continue after the global Covid-19 pandemic has yet to come many years to be overcome, inflation remains high, instability in finance, currency, sovereign debt, energy security, wages, etc. As a result, global economic growth tends to slow and some countries are showing signs of entering economic recession .

In the country, the economy has opportunities, advantages and difficulties, challenges are intertwined, but difficulties and challenges are more. inflationary pressure, exchange rate, rate hike; Production and business continue to face many challenges; Vietnam’s traditional and large import and export markets have been narrowed.

As for the traditional US market, according to the Vietnam Trade Office in the US, Vietnam’s exports to this market face many difficulties due to US fiscal and monetary policies, high inflation, high cost of goods and services, regulations Federal and state governments are complicated, especially when it comes to quarantine, food safety, labor standards…

In addition, US import demand and year-end inventory have not improved, with many large contracts with partners paying off only after full delivery. In addition, there is competition from other countries’ commodities for key exports such as agricultural and aquatic products, textiles and clothing, and footwear, while production capacities in some sectors are unlikely to experience high growth.

In addition, Vietnamese companies face trade barriers, technical barriers, food hygiene and safety standards, and trade expedients. While Vietnamese companies are mainly small and medium-sized enterprises, they are limited in terms of capital, technology, management experience, lack of flexible business plans, risk prevention, legal knowledge, which leads to competitiveness.

CREATIVE NECESSARY

Mr. Nguyen Hong Dien, Minister of Industry and Trade, agreed that the world situation in 2023 is expected to continue to be complicated and difficult to predict. Therefore, Mr. Dien led the system of Vietnam’s overseas trade agencies. It is necessary to continue better promoting the labor role in helping localities, industry associations and manufacturers build brands to expand, diversify markets, supply chains and export products.

At the same time, the head of the Ministry of Industry and Trade suggested that it was necessary to develop specific scenarios and solutions for each industry… with the motto of preserving the traditional market, seeking and developing new markets. At the same time, there are solutions to new market barriers, the adoption of new policies in host countries; Change settings and effective advertising methods…

Ms. Tran Thu Quynh, trade adviser at the Vietnam Trade Office in Canada, said high inflation is affecting consumption in the country. Therefore, in 2023, the agreement will prioritize supporting companies to reap the benefits of the CPTPP, increase exports of Vietnam’s strengths, organize sales promotion activities, and organize trade unions. Vietnamese companies come to this market to look for export opportunities.

Faced with these difficulties, Mr. Luu Van Khang, trade adviser to the Vietnam Trade Office in Mexico, said Vietnam’s seafood and processed agricultural products have large export sales to that country, but the companies need to research and produce products that suit the tastes of the local people.

Green coffee also offers many opportunities for Vietnamese companies. In addition to exporting green and instant coffee, companies may also seek joint venture or investment opportunities to produce instant coffee for sale in Mexico and export to the region when transportation costs are high and unexpected.

In addition, Mexico is the seventh largest automobile manufacturer in the world, so “one of the goals of the Vietnamese trade office in Mexico is to coordinate with trade on the North American west coast to organize a promotional delegation for trade in auto parts in the United States, Canada and Mexico ‘ said Mr. Khang.

In order to sustain the export market, Mr. Ngo Xuan Ty, Trade Bureau of Brazil and Peru, said it is necessary to step up the introduction and promotion of Vietnamese products and commodities directly at fairs and exhibition centers.

Combining the promotion of Vietnamese products, goods and people on local media channels such as television, commercial centers, venues where economic, cultural, trade and investment events are held in Vietnam, states and major cities.

On the other hand, you cooperate and network with associations, national associations and cities in order to exchange, present and promote products and goods.

Vietnamese companies, associations and municipalities in particular should coordinate with the Ministry of Industry and Commerce to participate in direct promotional programs such as trade fairs, exhibitions, promotional conferences and business conferences, etc.

In addition, Deputy Minister of Industry and Commerce Do Thang Hai said trade promotion requires creativity and appropriate promotional policies. Trade promotion includes not only activities but also export and import promotion; not only fairs and exhibitions, but also need to connect and improve the capacity and skills for enterprises; provide information; investment promotion; Organization of briefings for each industry and market; gain experiences and lessons; based on the recommendations of associations, industries… to have effective solutions.