International business expansion trend of businesses

Sokfarm actively participates in international fairs to reach customers. Photo: T.L

Continuous business expansion

According to the business performance announced by Thanh Cong Textile Garment – Investment – Trading JSC, in the first six months of 2024, Thanh Cong JSC achieved US$64.08 million in sales and US$5.84 million in profit after taxes, growing 12% and 29% respectively year-on-year.

In 2024, Thanh Cong Garment sets a target of VND3,707 billion in sales (US$157.7 million), an increase of 12% compared to 2023, and a target of VND161.2 billion in profit (US$6.68 million). Up to now, the company has received orders corresponding to about 90% of the revenue target for the third quarter of 2024 and about 86% of the revenue target for the fourth quarter of 2024.

In the first half of 2024, Thanh Cong Garment exports products to more than 30 countries, spreading from Asia, Europe, America... Besides exporting traditional products, the company has been diversifying products, especially environmentally friendly products, recycled products and high-value products to enhance the product value chain, expand customers in markets with a lot of room as well as such as finding and expanding customers and new markets to increase exports.

Not only large enterprises, even small enterprises and startups are constantly making efforts to reach the world market. Typically, Tra Vinh Farm Co., Ltd. (Sokfarm), although it only started its business in 2019, its products from coconut nectar have been officially exported to many markets such as Japan and Dutch, Germany, America and Australia.

Sokfarm's export markets are expanding in parallel with Sokfarm's growth journey. That process not only involves Sokfarm's constant efforts in researching and perfecting products but also persistence in accessing and understanding market trends through a series of international fairs and exhibitions in Europe, Asia…

Mr. Pham Dinh Ngai, CEO of Sokfarm, shared that the company is expected to achieve VND4 billion in export this year, 4 times higher than the the results achieved in 2023. In the long term, Sokfarm expects that the exports will contribute 50% of the company's revenue by 2030, a sharp increase compared to the current level of 7-8%. To realize this ambition, Sokfarm is making efforts to expand its raw material areas and factories to increase capacity, creating a foundation for conquering more new markets in the future.

Support for businesses

Besides the potential domestic market, the international market is always a promising land that any business wishes to reach. A recent survey conducted by United Overseas Bank (UOB) Vietnam shows that up to 90% of Vietnamese businesses are interested in expanding markets abroad and ASEAN is the top choice in their expansion plan. Accordingly, the motivation for Vietnamese businesses is to increase revenue, profits as well as build reputation and international brand.

Global business expansion also a solution mostly chosen to diversify markets, thereby minimizing business risks. In addition, many businesses are also reaching out to the world to take advantage of the Government's policies on support for business expansion. Specifically, with 15 Free Trade Agreements (FTAs) in effect, Vietnamese goods have a special advantage in most markets around the world.

However, on the road to reaching the world, Vietnamese businesses also face many difficulties. Mr. Lim Dyi Chang, Director of Corporate Banking, UOB Vietnam Bank, said that UOB's survey showed that up to 41% of Vietnamese businesses face challenges due to lack of customers in new markets. In addition, lack of legal, regulatory, compliance and tax support and difficulties in finding suitable partners for cooperation are also barriers for Vietnamese businesses when doing business in foreign markets.

Through discussions with businesses, Mr. Lim Dyi Chang said that businesses in Vietnam are expecting financial support such as tax incentives or tax refunds, funding sources or subsidies for new markets. Besides these financial supports, Vietnamese businesses are also looking for non-financial supports such as connecting with large businesses that are potential customers in foreign markets.

Facing with this reality, foreign banks with extensive networks are increasingly playing an active role in supporting businesses on their path to conquering the international market. Mr. Lim Dyi Chang said, UOB Vietnam is a subsidiary bank of UOB Bank in Singapore with a network of more than 500 offices in 19 countries and territories in Asia - Pacific, Europe and North America. With more than 30 years of operation in Vietnam, a deep understanding of the market and solid expertise in each field, an extensive network in the region and a large partner ecosystem, UOB has the ability to connect Vietnamese enterprises with opportunities in the region and help businesses determine direction in the complex market context and seize growth opportunities in the ASEAN region and beyond.