In the context of complicated Covid-19 epidemic in major export markets of Vietnam such as Europe and the America, promoting the exploitation of ASEAN markets is considered a solution for businesses to maintain export turnover and develop sustainably.
Binh Duong leather and footwear industry has enough conditions to exploit the ASEAN market
The big markets
Currently, Indonesia, Thailand, Philippines are the three largest import markets of Vietnamese goods with many different items. Meanwhile, Indonesia and the Philippines have a need to import many generators, water pumps, electrical appliances, telecommunications equipment from Vietnam. The current paradox is that Vietnamese businesses have not focused on intra-ASEAN exports despite many preferential tariffs and geographical advantages. The majority of intra-regional exports are from FDI enterprises with valuable items such as phones, computers, electronic products and components. Besides, the export to ASEAN has also encountered many difficulties due to subjective conditions. Specifically, domestic exporters are mostly small and medium, production technology is backward, mainly suitable for markets such as Laos, Cambodia and Myanmar in high standard markets like Thailand and Singapore,
At the recent seminar on promoting Vietnam's exports of goods to ASEAN, experts said that the ASEAN economic community has brought Vietnam both great opportunities and challenges. The export market is open, but the goods face the fierce competition from the countries in the bloc. Therefore, businesses that want to develop stably and sustainably must restructure to meet the needs of the market.
Mr. Tran Thanh Trong, General Director of Sang Ban Mai Joint Stock Company - an enterprise focusing on developing the generator market in ASEAN region, said the fact that Vietnam's products can completely compete with quality and price. The company's SBMPOWWER brand generator is fully qualified to provide for many major projects of Southeast Asia market. The important thing that the company has done is branding, focusing on improving the quality, products of Sang Ban Mai have a certain foothold in the country and the region.
Regarding the market, Mr. Truong Xuan Trung, Head of Vietnam Trade Office in Indonesia, suggested that export enterprises could build a distribution network through an agent who is indigenous, easy to access consumers and save money. cost than opening a branch. In some markets, the level of difficulty and risks in customs clearance is quite high, so businesses need to contact closely with support units such as Vietnam Trade Office in the host country, advisory centers, supporting import and export to update policy, procedure and market information on a regular basis, thereby increasing export efficiency.
To seize the opportunity
One thing that is said to be favorable when exploring the ASEAN market is that by 2020 Vietnam will assume the role of ASEAN Chair. This is an opportunity to affirm and enhance Vietnam's position in the region and the world, further expand trade and investment activities.
In order to effectively exploit ASEAN market, experts believe that enterprises need to restructure commodity categories in accordance with the new situation, and improve product quality with advanced technology. Besides, businesses need to apply digital technology to management, market access as well as transactions with customers. Sharing market experience, Mr. Tran Thanh Trong said that Vietnamese enterprises must compete with quality, price, quantity, and at the same time attaching importance to sustainability with customers. This is an important step, because the products of each country and each enterprise are in the regional and global value chains.
Sharing this view, Mr. Fukunari Kimura, Chief Economist of ASEAN and East Asia Economic Research Institute (ERIA) recommends that, in a new era of digitalization, trade and investment faces a number of challenges from globalization. Therefore, businesses must act towards consumers, focusing on new types of trade with the support of technology.
For a long time, ASEAN has been considered as a potential market but it is difficult to take advantage of many reasons such as similar products, cheaper prices of Vietnam, many countries in the region such as Thailand have developed agriculture with higher degrees. The good news for the province's industry is that recently, Thai Binh Investment Joint Stock Company said that it has completed the procedures to expand its factory in Myanmar. This will be an opportunity for "big" footwear industry in Binh Duong to promote exploitation of ASEAN market. Not only the leather and footwear industry, but other businesses still have enough conditions to exploit the ASEAN market. The point is to qualify and seize the opportunity.
Reported by Tieu My – Translated by Vi Bao
