Jan 13, 2012

Vietnam - Vietnam exporters seeking new export markets



Many newly emerging markets are expected to make milestone for Vietnam’s exporters while traditional markets are falling.

Along with confirming USA, EU and Japan as major export markets midst the global economic recession and public debt crisis, apparel, wood and handicraft product companies of Vietnam are boosting export to new markets with high potential to offset the shortage of orders of traditional markets.

According to Handicraft & Wood Industry Association of HCM City (HAWA), the wood producers target to expand markets to India and Middle East. Domestic firms can access the small segments of these markets and small orders which international wood producers do not pay attention. Mr Dang Quoc Hung, Vice President of HAWA said that in 2011, the association will send a group to survey the markets namely Middle East, India, Italy, China to build up suitable marketing strategies.

In the coming time, HAWA will boost marketing via inviting enterprises of these countries to visit wood and handicraft products fair in Vietnam. Also, the association is building the “virtual house” to promote electronic commerce and broadcast Vietnam’s wooden products through internet. According to Hung, China is the new and large market of Vietnamese wood producers. HAWA is planning to organize a showcase of wooden products in China.

Similarly, a lot of apparel companies faced difficulties in export. Orders from three large markets (USA, EU and Japan) were declining. Mr Pham Xuan Hong, Vice President of Vietnam Garment and Textile Association (VITAS) said that seeking new markets was not easy. South America and Middle East markets had been concerned before but their potential was not high whereas Vietnam’s apparel products have not been able to enter Russia due to problems in payment procedures. Only few apparel companies exported to Russia with small load.

Vietnam’s apparel industry has new markets including Angola, New Zealand and Cuba. For the enterprises under Vietnam Garment and Textile Group (Vinatex) alone, last year the major markets (USA, EU, Japan) remained stable and continued being reinforced. Some newly emerging markets like South Korea and Canada are being expanded and accounting for big proportion in total export turnover of Vinatex. Notably, the apparel export to South Korea jumped 103% between 2010 and 2011.

Beside, the apparel export of Vietnam to Asia (China, India, South Korea) kept growing well, taking up 20% of total export turnover of Vietnam’s apparel industry in 2011.

Regarding footwear industry, according to Vietnam Leather Shoes and Footwear Association (Lefaso), the additional orders were shifted from China and some old customers returned after EU ended anti-dumping tariff on Vietnam’s leather-headed shoes. In the current condition, exporters need to upgrade quality, design, and types of products to reinforce markets, increase market shares and competitive strength against Chinese footwear.

As for USA, the export opportunity remained high but not many Vietnamese firms can take advantages of this. Meanwhile, EU that accounts for 49% of Vietnam’s leather shoes export market is waiting for an expected economic recovery.

VietBiz24



Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.

No comments:

Post a Comment