Local firms should focus on improving competitiveness in the quality ofexport products for the European Union (EU) market in the future, said atrade official.
Vu Ba Phu, Minister Counsellor of theVietnamese Embassy in Belgium and the EU (Luxembourg concurrently),told thoibaokinhdoanh.vn that the EU has been an important market forVietnam since 2012.
He added that the EU is nowVietnam's largest export market with a total trade value of 30 billionUSD for 2013, followed by the US, China, the ASEAN countries andJapan .
The EU has been a commodities market forVietnam, with export products including coffee, cashew, textiles,garments, leather, footwear, electronics and telephone products, Phusaid. He noted that the EU offers higher export value than the othermarkets. However, it has strict quality standards.
This year was a difficult one for the EU market because it didn't makemuch of a recovery, but Vietnam's firms made efforts to export theirproducts there, especially high-tech products such as electronics,telephones, textiles, garments, leather and footwear.
The export of textiles, garments, leather and footwear products havemaintained stable growth, while the export of electronics and electricaland telephone products have made a year-on-year increase of 50 percent,Phu noted. But the export of seafood and coffee products to the EU hasdropped sharply.
However, the EU has seen growth insome economic sectors, and it will overcome the economic crisis afterimplementing numerous solutions, Phu said.
Therefore, Vietnam expects a recovery in market demand andinternational trading activities in the EU next year, includingcommercial activities with Vietnam that will continue to grow, Phustated.
To enter the EU market, local exportersshould access Belgium's market first because if Vietnamese exportsmake a mark there, they will be successful in the EU market also, Phusaid.
Additionally, they should change the focusfrom competitiveness in price to competitiveness in output, quality andefficiency because the EU market accepts high import prices and asks forhigh quality, stability, customer care services and commitment toproduct quality, he pointed out.
Local enterprisesshould invest in building factories in Belgium to complete the lastprocess of export products because they can introduce new products,meant for the EU market, in Belgium first.
Moreover, direct investment in Belgium could help the enterprises toreduce the production cost of export products and also to increasetheir competitiveness.
At present, enterprises fromVietnam and the EU expect the bilateral free trade agreement to befinalised as soon as possible because it will bring low tariffs forproducts from Vietnam and the EU in the two markets, with the aim ofreducing prices and diversifying goods.
It will bea great chance for local firms to increase their exports to the EU whenthe agreement comes into effect, Phu remarked.-VNA
Vu Ba Phu, Minister Counsellor of theVietnamese Embassy in Belgium and the EU (Luxembourg concurrently),told thoibaokinhdoanh.vn that the EU has been an important market forVietnam since 2012.
He added that the EU is nowVietnam's largest export market with a total trade value of 30 billionUSD for 2013, followed by the US, China, the ASEAN countries andJapan .
The EU has been a commodities market forVietnam, with export products including coffee, cashew, textiles,garments, leather, footwear, electronics and telephone products, Phusaid. He noted that the EU offers higher export value than the othermarkets. However, it has strict quality standards.
This year was a difficult one for the EU market because it didn't makemuch of a recovery, but Vietnam's firms made efforts to export theirproducts there, especially high-tech products such as electronics,telephones, textiles, garments, leather and footwear.
The export of textiles, garments, leather and footwear products havemaintained stable growth, while the export of electronics and electricaland telephone products have made a year-on-year increase of 50 percent,Phu noted. But the export of seafood and coffee products to the EU hasdropped sharply.
However, the EU has seen growth insome economic sectors, and it will overcome the economic crisis afterimplementing numerous solutions, Phu said.
Therefore, Vietnam expects a recovery in market demand andinternational trading activities in the EU next year, includingcommercial activities with Vietnam that will continue to grow, Phustated.
To enter the EU market, local exportersshould access Belgium's market first because if Vietnamese exportsmake a mark there, they will be successful in the EU market also, Phusaid.
Additionally, they should change the focusfrom competitiveness in price to competitiveness in output, quality andefficiency because the EU market accepts high import prices and asks forhigh quality, stability, customer care services and commitment toproduct quality, he pointed out.
Local enterprisesshould invest in building factories in Belgium to complete the lastprocess of export products because they can introduce new products,meant for the EU market, in Belgium first.
Moreover, direct investment in Belgium could help the enterprises toreduce the production cost of export products and also to increasetheir competitiveness.
At present, enterprises fromVietnam and the EU expect the bilateral free trade agreement to befinalised as soon as possible because it will bring low tariffs forproducts from Vietnam and the EU in the two markets, with the aim ofreducing prices and diversifying goods.
It will bea great chance for local firms to increase their exports to the EU whenthe agreement comes into effect, Phu remarked.-VNA
