Vietnam’s exports to US reach 12.4 billion USD
Vietnam’s total shipment to the US in the first four months of the year rose 8.7 percent year-on-year to 12.4 billion USD, according to the General Department of Vietnam Customs.
Illustrative image (Source: VNA)HCM City (VNA) – Vietnam’s total shipment to the US in the first four
months of the year rose 8.7 percent year-on-year to 12.4 billion USD, according
to the General Department of Vietnam Customs.
Vietnam’s key exports to the American nation included aquatic products, garments, footwear, wood and wooden products, computers, electronics, spare parts and farm produce.
However, shipments of such products will taper off as Vietnam is facing myriads of free trade barriers, experts said at a conference held in Ho Chi Minh City on June 7.
They stressed that Vietnamese enterprises also face difficulties in enhancing domestic production capacity and have no comprehensive access to food safety and hygiene regulations as well as current procedures to enter US market.
Vietnam’s key exports to the American nation included aquatic products, garments, footwear, wood and wooden products, computers, electronics, spare parts and farm produce.
However, shipments of such products will taper off as Vietnam is facing myriads of free trade barriers, experts said at a conference held in Ho Chi Minh City on June 7.
They stressed that Vietnamese enterprises also face difficulties in enhancing domestic production capacity and have no comprehensive access to food safety and hygiene regulations as well as current procedures to enter US market.
Analysing
new daunting challenges for Vietnamese exporters, Vice President of Registrar
Corp David Lennarz said that Vietnamese enterprises need to have
representatives in the US or the designated party.
According to the US law, all of the foreign firms exporting food and beverages for people and animals into the US market must re-register every two years. This included registering their manufacturing facilities and representatives in the US so that they could be issued with a new valid business code. This task needed to be completed before the shipment arrives in the US.
However, since 2017 the US Food and Drug Administration (FDA) has changed the method of verification for issuing new business codes and established further regulations. After being designated by the manufacturing facilities and registered with the FDA, the firms’ representatives in the US must send a letter or document to the FDA confirming their authorisation to represent a Vietnamese manufacturing facility in the US.
If the FDA does not receive the letter or document, the re-registration is considered incomplete and the business code will be cancelled.
From the end of 2016 to the beginning of 2017, number of Vietnamese businesses having registration with the FDA for exports to the US fell 45 percent. This was due to the fact that Vietnamese businesses have no representatives in the US or the representatives do not send verification to the FDA.
Shipments by Vietnamese firms that are unaware that their FDA business codes have been revoked will be refused entry to the port.
Vietnam currently ranks 16th among the US’ leading trade partners. Bilateral trade grows 20 percent annually and Vietnam has enjoyed a trade surplus with the US in the past 10 years. -VNA
According to the US law, all of the foreign firms exporting food and beverages for people and animals into the US market must re-register every two years. This included registering their manufacturing facilities and representatives in the US so that they could be issued with a new valid business code. This task needed to be completed before the shipment arrives in the US.
However, since 2017 the US Food and Drug Administration (FDA) has changed the method of verification for issuing new business codes and established further regulations. After being designated by the manufacturing facilities and registered with the FDA, the firms’ representatives in the US must send a letter or document to the FDA confirming their authorisation to represent a Vietnamese manufacturing facility in the US.
If the FDA does not receive the letter or document, the re-registration is considered incomplete and the business code will be cancelled.
From the end of 2016 to the beginning of 2017, number of Vietnamese businesses having registration with the FDA for exports to the US fell 45 percent. This was due to the fact that Vietnamese businesses have no representatives in the US or the representatives do not send verification to the FDA.
Shipments by Vietnamese firms that are unaware that their FDA business codes have been revoked will be refused entry to the port.
Vietnam currently ranks 16th among the US’ leading trade partners. Bilateral trade grows 20 percent annually and Vietnam has enjoyed a trade surplus with the US in the past 10 years. -VNA
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