Adapt and proactively respond to opportunities to expand exports

Dr. Nguyen Manh Hung

How do you evaluate the ability of Vietnamese enterprises to take advantage of niche markets in export?

Vietnam has the advantage of having signed and implemented many Free Trade Agreements (FTAs) with major markets around the world, so Vietnamese businesses can take advantage of opportunities from these FTAs to expand export activities. Furthermore, through reducing or eliminating tariff barriers, FTAs can help improve the competitiveness of Vietnamese products by price.

Reality in 2023 shows that some traditional export products such as electronics, phones, garments... have declined, but Vietnam has recorded a number of industries and regions with significant export growth, such as exporting vegetables, fruits, rice... Regarding markets, many new markets have had significant growth. According to the Ministry of Industry and Trade, in the Mercosur bloc, Argentina increased by 17.9%, Brazil increased by 9.1%, and Paraguay increased by 20.8%. In Southeast Asia, Vietnam's exports to Indonesia increased by 13.8%... With more than 80% of the world's population living in countries with emerging and underdeveloped markets, this direction will create many opportunities for export businesses.

In your opinion, what are the difficulties for businesses when expanding export markets?

Competition in the export market is increasing, requiring businesses to develop flexible supply chains to maintain stable quality and competitive efficiency. Additionally, meeting regulations on traceability, certification and environmental impact can be a major challenge for many exporters, especially small and medium-sized enterprises. For example, shrimp exports to North American and EU markets require strict traceability and certification to ensure these products are sourced from sustainable and legally operated fisheries. Recent research by RMIT Vietnam has shown that green export regulations are putting pressure on businesses to innovate and cooperate to share risks in the supply chain.

With new markets, besides high costs to penetrate and maintain, Vietnamese businesses also face fierce competition in terms of cost and quality. In particular, the newer the market, the higher the risks associated with partners, payments, transportation of goods, etc.

How can Vietnamese businesses meet quality standards as well as avoiding legal and payment risks in niche markets, sir?

To meet quality standards, Vietnamese businesses need to proactively strengthen their supply chain networks and capabilities to enable accurate tracking of origin, or compliance of partners in the supply chain involving sustainable development.

To avoid risks, when exporting to emerging and developing regions, Vietnamese businesses need to evaluate their partners' contract performance capacity to avoid causing damage to both parties. Verifying the counterparty's ability to perform the contract is important to minimize the risk of contract failure and potential damages. It is important to conduct background checks, references, track records, financial assessments and use of professional services.

From the above issues, in your opinion, what kind of support do Vietnamese businesses need from management agencies?

To support small and medium-sized enterprises, the Government and regulatory agencies need to play a more important role in using information technology to capture market information and support market assessment to reduce export risks. Banks, financial institutions, and associations can create favorable conditions for businesses by consolidating resources for comprehensive market research and risk prevention. Using advanced data analytics tools, these organizations can analyze market trends, consumer behavior and other relevant factors to provide valuable information to enterprise.

Thank you!