Up to 57 percent of surveyed small- and medium-sized enterprises (SMEs) in Vietnam believe they will continue to enjoy growing export. (Photo: VNA) Hanoi (VNA) – Up to 57 percent of surveyed small- and medium-sizedenterprises (SMEs) in Vietnam believe they will continue to enjoy growingexport, according to a research recently conducted by market research companyHarris Interactive on behalf of FedEx Express.
Entitled “Global isthe New Local: The Changing International Trade Patterns of Small Businesses inAsia Pacific”, the research showed the businesses were optimistic and believedthey will see further increase in exports to markets beyond Asia-Pacific in theyear ahead such as the US, India, and Germany.
The enterprises were also bullish on exports within the Asia-Pacific, withalmost two-thirds or 62 percent anticipating increased revenue growth in thecoming time.
About 58 percent of Vietnamese SMEs export to the Asia-Pacific, focusing onChina, Japan and the Republic of Korea.
Eight out of ten SMEsin the country (80 percent) were exporting to markets outside the Asia-Pacificregion, higher than the average level of APEC members of 71 percent.
The research revealed that 87 percent of the Vietnamese SMEs had stableor increased shipments over the past year, generating an average of 23.65trillion VND (1.04 billion USD) in revenue.
Earningsfrom export accounted for 48 percent of total revenues of Vietnamese SMEs, withtop exports being completed products, raw materials, and spare parts.
Half of Vietnamese SMEs were importing from other markets. Great productvariety and superior product quality are two of the most cited benefits ofimporting goods. Although raw materials and components top the list of imports,professional services and designs are closely follow-up, which illustrates anincreasingly prevalent borderless online marketplace today.
Average import value was estimated at 467 million USD, and major import marketsof Vietnamese SMEs included the Europe (30 percent), North America (18percent), Asia (17 percent), and Latin America (10 percent).
“As shown in the research, the strong optimism from small and medium-sizedbusinesses in Vietnam demonstrates that they are looking to drive furthergrowth of exports and imports within the local and global economies.”, saidHardy Diec, managing director at FedEx Express, Indochina.
The independent research also stated that the thriving digitaleconomy is a driving force for business growth among SMEs in the region. 73percent of the Vietnamese respondents said that they were optimistic about thebenefits that digital economy would bring about. Nine out of ten SMEs inVietnam were using e-commerce, mobile and social network commerce, and 76percent expect the channels would further grow in the next few years.
New technology is another key business motive. SMEs in theAsia-Pacific were harnessing advanced technologies in the era of Industry 4.0to expand their business. They believed that adoption of such technologies asmobile payments, big data, advanced analytics, and software automation would increasein the next 12 months.
43 percent of the Vietnamese SMEs indicated that their mainmotivation to use those technologies is to improve efficiency in supply chainand distribution channels, thus promoting business growth.
Hardy Diec said that problems in customs clearance, foreign currency exchange,and logistics i are the main obstacles to SMEs in Vietnam in expanding theirbusiness globally.
SMEs in Vietnam reported that they are looking for different shipping options,including deferred shipments travelling over ocean (83 percent) or by road (17percent) in addition to express shipments by air (71 percent).
The research was conducted based on interviews with 4,543 senior executives ofSMEs held online and by telephone in nine markets in Asia Pacific between Marchand April 2018.
The markets included in the research were: Mainland China, Hong Kong, Japan,Malaysia, Philippines, Singapore, the Republic of Korea, Taiwan, Thailand andVietnam.
Interviews were split equally by market with a representative mix of companysizes: micro (1-9 full-time employees), small (10-49 full-time employees) andmedium (50-249 full-time employees). The sample size was approximately 500respondents per market.-VNA
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