Promoting export of advantageous products to conquer Americas

Recognising the Americas as a high-potential export market, Deputy Minister of Industry and Trade Do Thang Hai said businesses need to focus on and promote exports of existing advantageous products to this market and seek other advantageous products to export this market, gradually conquering this market.

How do you assess the prospects of promoting bilateral trade in the near future?

As we know, the Americas are a large market with a population of more than 1 billion people. Currently, trade cooperation between Vietnam and the Americas have many positive signs. This is also a very potential market. Recently, the Americas have consistently achieved the highest growth in trade turnover among Vietnamese partners.

In 2019, merchandise trade with the Americas hit US$97 billion or 18.4% of the total Vietnam’s trade turnover. Of which, export turnover was $73 billion or for 26.4% of the total export turnover. Currently, Vietnam's advantageous export products including electronics, electronic components, wood and wooden products as well as agricultural products, food products and many other products that have gained a firm foothold and been appreciated by Americas consumers.

In addition, Vietnam has also joined many international organisations such as the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC) and also signed free trade agreements (FTAs) with many countries in the Americas such as Chile and most recently Cuba. In particular, Vietnam has alsoacceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In the CPTPP, there are four countries in the Americas (Peru, Chile, Canada and Brazil). These are great opportunities for Vietnam, especially Vietnamese enterprises, if they catch the opportunities to bring advantageous and high-quality products to this very large market.

What are the difficulties and obstacles to promote trade with this market?

There are a number of obstacles on long distance geography. Currently, there are no direct carriers from Vietnam to the countries in the Americas. In addition, a very big obstacle to Vietnamese enterprises is language. In fact, the English language is an obstacle, while the Spanish and Portuguese are popular in the Americas, which is a more serious problem for enterprises.

What has the Ministry of Industry and Trade been doing to support enterprises to penetrate deeper into the Americas?

To support enterprises to penetrate deeper into the Americas market, the Ministry of Industry and Trade has organised a lot of activities to provide knowledge about the market and products. In addition, the ministry has also organised many trade promotion activities and supported enterprises to organise delegations to survey the market, meet partners at trade promotion events as well as directly worked with enterprises of the countries in the Americas to be able to promote the economic and trade relations between the two countries.

Currently, the Americas market is very fond of Vietnamese food, beverages and fruits. However, Vietnamese products are still facing difficultiesin quarantine. Therefore, within the framework of the Joint Committees, the Intergovernmental Committee between Vietnam and other countries; at meetings with the participation of many other ministries and sectors such as the Ministry of Agriculture and Rural Development, the Ministry of Science and Technology, the Ministry of Industry and Trade also discussed with authorities of countries in the Americas to find ways and create the most favourable conditions for Vietnamese products to enter this market.

In addition to the support of State management agencies, what do you note enterprises for the export promotion to the Americas market to get better results in the future?

In addition to the support of ministries and sectors, Vietnamese enterprises need to focus on and promote more advantageous products such as electronic products, electronic components, wood and wood products, agricultural products, garments and footwear.

In addition, enterprises must continue to seek more advantageous products of Vietnam that are currently exported to other markets, including fastidious markets such as the EU and Japan.

In addition, the fields of information technology, computers, and electronic components are also potential products. We want enterprises in the information technology sector to be proactive and promote more strongly their activities to increase export turnover in this field.

Energised by the dynamism of Vietnamese enterprises and the support of agencies and the Government of Vietnam, Vietnamese products will surely develop and gain better foothold in the Americas market, improving position and brand of Vietnamese products as well as promoting export turnover from Vietnam to the Americas market.

Nguyen Hoai Nam, Deputy Secretary General of Vietnam Association of Seafood Exporters and Producers (VASEP): Seafood enterprises expect more trade relations with the Americas region.

Currently, 31 Americas countries have two-way trade with Vietnam's seafood industry. Over the past three years, seafood exports to the Americas has always accounted for 25% of Vietnam’s total seafood exports. Many countries in the Americas are also strong producers of seafood such as Brazil and Ecuador. We wish to have more trade relations with the Americas region in both export and import, because many products in the Americas are Vietnamese favourites, or there are many orders from Vietnamese enterprises on raw materials from the Americas market.

Amid the Covid-19 pandemic, Vietnam’s seafood exports decreased, but the seafood exports to the Americas market still had a significant growth, such as exports to the US and Canada. Currently, Vietnam's seafood exports to the US topped US$1 billion per year, to Canada over US$250 million per year. Seafood exports to some markets in the Americas decreased compared to the previous year, but I believe that in the future, seafood exports will grow again.

The seafood business community affirms that Vietnamese seafood products always ensure quantity and quality to 31 Americas markets that have trade relations with the seafood industry. Vietnamese enterprises do not distinguish scale of markets and pay attention to all.

Bui Huy Son, Vietnamese commercial counselorto the United States: Enterprises need to quickly catch opportunities from the supply chain shift
In the future, to take advantage of opportunities to promote exports to the Americas market, enterprises should to quickly catch opportunities from the supply chain shift associated with a long-term vision of quality and efficiency. When enterprises achieve high competitiveness, the trend of supply chain shift always opens up new opportunities not only for the US or China, but also other markets and other suppliers.

As for the US market, I expect Vietnamese companies will adapt to the market requirements in the new situation of the pandemic. Enterprises need to improve products, promote trade promotion and increase exports through direct and online distribution channels. Also, enterprises should participate in investment and business cooperation with American partners and partners in third countries to improve the competitiveness of export products and services and always pay attention to ensuring product traceability both in production and investment cooperation.

It is important enterprises not only prepare production capacity and conditions to promptly respond to and immediately participate in the market, but also must meet the new requirements of the market, for example, requirements on online shopping, goods design, packaging, approach to online distribution channels.

Source: Customs News