Vietnamese goods still have a lot of room to enter the European-American market

Vietnamese goods increase “coverage” in the European-American market

Reported at the Conference on Promoting Domestic Consumption and Expanding Export Markets on February 3, Director General of the Europe-America Market Department (Ministry of Industry and Trade) Ta Hoang Linh said that 2022 is the year The world economy in general and the Europe-America region in particular faced many difficulties and instability. However, trade in goods between Vietnam and the European-American market countries basically maintained a fairly high growth rate, making an important contribution to Vietnam’s trade surplus in 2022.

Specifically, in 2022, the total import and export turnover of goods between Vietnam and the European and American regions will witness a growth of about 9.4% compared to 2021, reaching more than 230 billion USD.

In which, exports reached 184 billion USD, up 12.3% and accounting for nearly 50% of Vietnam’s export turnover in 2022. Imports reached more than 46 billion USD, down 1% and accounted for 12 8% of Vietnam’s import turnover. The trade surplus with this market reached 138 billion USD, helping Vietnam’s trade balance reach a surplus of 12.4 billion USD.

The above positive results come from the positive export growth in key export markets such as: the US reached 109.4 billion USD, up 13.6% compared to 2021; EU27 reached 46.8 billion USD, up 16.7%; CPTPP countries in the Americas reached 13.1 billion USD, up 8.7%; Britain reached nearly 6.1 billion USD, up 5.2%.

Advantages of FTAs

Ta Hoang Linh said that in 2023, import and export activities between Vietnam and the European-American market will have many advantages from existing free trade agreements (FTAs) with European market partners. -Americas.

Specifically, the Comprehensive and Progressive Agreement for Trans-Thailand Binh Duong (CPTPP), Vietnam-Chile, Vietnam-EU Free Trade Agreement (EVFTA), Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA), Free Trade Agreement The UK-Vietnam free trade agreement (UKFTA) continues to have a positive impact on Vietnam’s trade, investment and especially exports.

However, at the same time, businesses will have to face the fact that the main export market in European countries may slow down but still maintain a positive growth rate except Russia.

Moreover, the fact that Western countries (Europe-US) maintain or increase sanctions against Russia; Continuing China’s strategy of restraining development leads to these countries increasing their search for alternative sources of goods and alternative investment locations while Vietnam may be an option.

This is especially true when all countries are focusing on food security and supply chain stability while Vietnam has achieved many successes in the production and export of agro-forestry-fishery products and outstanding stability. economic determination.

In addition, Vietnam’s commitment at the United Nations Climate Change Summit (COP26), especially the commitment to bring net emissions to “zero” by the middle of the century, is assessed by the international community. High. Therefore, moving towards the production of green products, protecting the environment will create a competitive advantage for Vietnam’s exports in the future when the demand for these products in countries in the Europe-America region is increased. increasing as environmental protection policies in other countries pay more and more attention.

“Vietnam will receive more and more support from developed countries in energy transformation, changing production towards a circular economy and sustainable development in both production and consumption,” Mr. Linh commented.

Identifying difficulties and challenges

Besides the advantages, Vietnam’s import and export also face difficulties in 2023.

Specifically, the risk of economic recession, inflation and rising interest rates will reduce consumer demand in countries around the world, including the Europe-America region; the Russian-Ukrainian conflict continues to negatively affect the global economy; protectionist policies of countries are increasing day by day.

Developed countries are paying more and more attention to consumer safety issues, sustainable development, and combating climate change. Materials, labor and environment for imported products will be challenges for Vietnamese goods.

In addition, when China reopens and some key export areas loosen restrictions, it will increase competition in Vietnam’s export markets.

Therefore, in order to promote exports to the Europe-America region according to the tasks assigned in Directive No. 03/CT-TTg dated January 27, 2023 of the Prime Minister on key tasks after the holiday. Ta Hoang Linh said that the Ministry of Industry and Trade should closely monitor the market situation, advise and propose cooperation frameworks and solutions to develop the traditional market.

At the same time, diversifying export markets; continue to capture information on political and policy developments in the region and in the world affecting trade with Vietnam, thereby giving warnings and reacting promptly.

On the other hand, strengthen the provision of updated information on fluctuations and trends of major import/export markets, along with assessments of opportunities and challenges for businesses to have appropriate adaptation plans.

In particular, continue to focus on the implementation of FTAs ​​in general, especially new generation FTAs ​​such as CPTPP, EVFTA, UKVFTA. The goal is not only to help businesses understand the content of commitments to CPTPP, EVFTA, and UKVFTA, but also to effectively apply and promote the agreement’s incentives. From there, make the most of the opportunities and limit the challenges posed by these agreements.

Mr. Ta Hoang Linh also suggested that the Ministry of Industry and Trade should promote diversification of markets and industries to reduce dependence on traditional markets and industries.

Currently, markets such as the United States, Germany, the United Kingdom, the Netherlands… account for a large proportion of exports. However, the markets in Northern Europe, Eastern Europe, and Latin America are experiencing high growth rates, although small, but have plenty of room for exploitation and are also achieving remarkable export growth in recent years. come back here.

Typically, Poland (11%), Czech Republic (14.6%), Denmark (40%), Romania (up 52.6%), Slovenia (14.1%), Latvia (20.2%) ), Bulgarian (31%)…

Therefore, if there is a methodical and appropriate approach and penetration, Vietnamese goods can promote competitive advantages and increase presence in these markets. At the same time, it is necessary to increase and diversify key products in export, promote the exchange of commodity groups with competitive advantages, high technology content, high added value, deep processing, and high-value products. Green economy, circular economy.

Effectively implement cooperation mechanisms of the Intergovernmental/Joint Committee; assist in managing and directing the effective operation of the Trade Deal system, assisting businesses in trade promotion and invest.

According to Mr. Ta Hoang Linh, the Ministry of Industry and Trade should have a solution to coordinate with the business system to promote support for businesses to exploit the market well and protect their legal rights.

Moreover, support for businesses is implemented in a specific and deep manner according to each market and industry, focusing on increasing the awareness of manufacturing and exporting enterprises towards the circular economy approach. on sustainable production and consumption.

This aims to gradually change the production mindset of enterprises, encourage the application of technologies, materials, and use of renewable energy to meet increasingly strict standards and regulations of developed countries. especially countries that have made commitments at COP 26.

At the same time, overcoming the limitations of current Vietnamese enterprises such as market information, self-reliance in raw materials, production capacity to meet market requirements, and branding. In particular, strengthen the relationship through online platforms between businesses and the Trade Office system to promote the role of the Trade Office in the locality. At the same time, promptly protect the legitimate interests of Vietnamese enterprises.

Not only that, taking advantage of distribution companies that are partners in the “Project on developing policies to encourage and support Vietnamese businesses to directly participate in distribution networks abroad,” take advantage of the resources of experts. overseas and overseas Vietnamese enterprises (through activities with the overseas Vietnamese business community).

Mr. Ta Hoang Linh also proposed the system bank support Vietnamese enterprises to standardize production processes, improve competitiveness as well as have policies to control credit flowing into the production and export areas to support businesses.

Minh Hoa (t/h according to Vietnam+, Government Bulletin)