Vietnam - Trying to live the American dream

Finding fast routes into the US market remains a vexed question.

With around 310 million multi-cultural population, per capita GDP averaging $48,000 per year and less demanding consumers compared to those in EU and Japan, the US was a potential export market not only to Vietnamese firms but also to businesses in countries around the world, said Ministry of Industry and Trade (MoIT) American Market Department head Nguyen Duy Khien.

In 2011, the US spent more than $2,300 billion on importing commodities, almost double Germany’s total import value and triple that of Japan.

With such a tremendous demand and lucrative market pattern, US market remained one top target to any exporter, said Vietnam Trade Promotion Agency’s Export Support Centre director Nguyen Xuan Duong.

Khien said Vietnamese exports bound for the US market faced stiff competition, particularly from Chinese-made items in respect to key export items like footwear, textiles-garments, electronic, seafood, plastic and wooden products.

Besides, high transportation and transaction costs, long travel distance and fewer tax incentives are other disadvantages Vietnamese exports are suffering. In addition, local firms are mostly small in size with little brand value.

“Around two million US-based overseas Vietnamese (Viet Kieu) community will be an important bridge to deepen the presence of made-in-Vietnam products in US market,” said Duong.

Handicraft maker Doi Moi Company is one typical example of making an effective use of Viet Kieu support to bring its products to US consumer hands.

“Through support by some Viet Kieu, from 2002 our company began to make a foray into US market with initial modest export value of $200,000 per year,” said the company’s director Doan Van Lan, adding that to hike export value, the company made efforts to better quality and appearance, partake in US specialised fairs and create product differences to boost export value.

Trade experts warned firms to avoid using price discounts when exporting to US market since the US applied stringent anti-dumping regulations and US competent agencies often imposed severe penalties on violated exporters.

Khien warned Vietnamese export firms to be cautious because made-in-Vietnam export textiles and garments might be involved into anti-dumping lawsuits levied on Chinese goods and incur more stringent export requirements together with footwear products. Accordingly, they might be required to show third party’s certification.

Textiles and garments take the lead among top export earners to US market with total export value surpassing $6.6 billion in 2011, accounting for around 43 per cent of the sector’s total export value, preceding footwear, seafood and wooden furniture.

Hai Yen | vir.com.vn

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